What guidelines have you established over time?

Through my experience in trading, I’ve developed a set of guidelines that have helped me navigate the complex world of markets. Here are some key ones:
Risk Management is Key: Always determine how much of your capital you are willing to risk on a single trade and never deviate from this discipline. Many traders adhere to the 1% rule, meaning they risk no more than 1% of their trading capital on a given trade.
Have a Trading Plan: Before you enter any trade, have a clear plan that outlines your entry and exit points, as well as the rationale for the trade. This should include a risk-reward ratio and what you expect the market environment to be like.
Stay Updated with Market News: Economic indicators, political events, and global news can significantly impact market conditions. Staying informed helps in anticipating and reacting to market movements effectively.
Technical and Fundamental Analysis: Employ both technical indicators and fundamental analysis when evaluating trading opportunities. Technical analysis helps in determining entry and exit points, while fundamental analysis provides insights into long-term market trends.
Emotional Discipline: Emotions can cloud judgment, leading to impulsive decisions. Develop the discipline to stick to your trading plan, regardless of market conditions or emotional highs and lows from previous trades.
Continuous Learning: Markets evolve, and so should your strategies. Continuously educate yourself about new tools, techniques, and theories to remain competitive in the trading landscape.
Diversification: Spread your investments across different asset classes to mitigate risk. This ensures that a downturn in one market doesn’t drastically affect your entire portfolio.
Monitoring and Adapting: Constantly review your trades, learn from your mistakes, and adapt your strategies as needed. Being flexible and willing to change direction when the data suggests will keep you aligned with market realities.

Establishing and adhering to these guidelines has been crucial in managing risks and seizing opportunities effectively in trading.