25 point mantra

discipline
for day
trading
The success that a trader achieves in the
markets is directly correlated to one’s
trading discipline or lack thereof.
Trading discipline is 90 percent of the
game. The formula is very simple. Trade
with discipline and you will succeed;
trade without discipline and you will fail.
the 25 point mantra

discipline
for day trading
A MUST READ
You should read
through these rules
before the start of
every single trading
day!
The 25 point mantra
The success that a trader achieves in the markets is directly
correlated to one’s trading discipline or lack thereof. trading
discipline is 90 percent of the game. The formula is very simple.
Trade with discipline
and you will succeed.
Trade without
discipline and you
will fail.
To succeed one
must persist
No matter what
keep reading this
article over and
over again.
1
LEARN
Read these rules over
and over again to know
them off by heart.
2
REPEAT
Keep doing the same
successful routine over
and over again..
3
DISCIPLINE
Practiced 100% of the
time, every trade, every
day, no matter what!
Think of this as
praying
Remind yourself
how to conduct
yourself throughout
the trading session.

“The Wheel of Success”
There are three spokes that makeup what we
call the “Wheel of Success” as it relates to
trading. The 1st spoke is content. Content
consists of the external and internal market
information that traders utilise to make their
trading decisions. All traders must purchase
value-added content that provides utility in
making their trading decisions.
The most important type of content is internal market information (IMI) IMI simply is time and price
information as disseminated by the exchanges. After all, we all make our trading decisions in the
present tense based on time and price. In order to trade the markets effectively, we must have the
most live and up-to-date time and price information seamlessly delivered to our PCs through a
reliable execution platform and/or charting package. Without instantaneous time and price
information, we would be trading in the dark.
The 2nd spoke is mechanics. Mechanics is how you access the markets and the methodology that
you employ to enter/exit your trades. You must master mechanics before you can enjoy any success
as a trader. A simple keystroke error can result in a loss of thousands of dollars. A trader can ruin his
entire day with an inadvertent trade entry error.
Once you have mastered order execution, though, it is like riding a bike. The process of entering and
exiting trades becomes seamless and mindless. fast and efficient trade execution, will enable you to
hit a bid or take an offer before your competitors do. remember, the fastest survive.
THE MOST IMPORTANT SPOKE IN THE WHEEL
The 3rd and most important spoke in the Wheel of Success is
discipline. You must attain discipline if you ever hope to achieve any
level of trading success. trading discipline is practiced 100% of the
time, every trade, every day.
Review the following 25 Rules of trading discipline. You must
condition yourself to behave with discipline over and over again.
Many of our clients read through the rules every day before the
trading session begins. It doesn’t take more than three minutes to
read through them. Think of the exercise as praying, reminding you
how to conduct yourself throughout the trading session.

THE MARKET PAYS YOU TO BE
DISCIPLINED.
Trading with discipline will put more money in your
pocket and take less money out. The one constant truth
concerning the markets is that:
discipline = increased profits
BE DISCIPLINED EVERY DAY, IN
EVERY TRADE, AND THE MARKET
WILL REWARD YOU, DON’T CLAIM
TO BE DISCIPLINED IF YOU ARE
NOT 100 PERCENT OF THE TIME..
Being disciplined is of the upmost importance, but it’s
not a something thing, like claiming you quit a bad
habit, such as smoking. If you claim to quit smoking
but you sneak a cigarette every once in a while, then
you clearly have not quit smoking. If you trade with
discipline nine out of ten trades, then you can’t claim
to be a disciplined trader. It is the one undisciplined
trade that will really hurt your overall performance
for the day.
Discipline must be practised on every trade.
If you have a proven methodology but it doesn’t seem
to be working in a given trading session, don’t go
home that night and try to devise another one.
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ALWAYS LOWER YOUR TRADE SIZE
WHEN YOU’RE TRADING POORLY.
Being disciplined is of the upmost importance, but it’s
not a something thing, like claiming you quit a bad
habit, such as smoking. If you claim to quit smoking
but you sneak a cigarette every once in a while, then
you clearly have not quit smoking. If you trade with
discipline nine out of ten trades, then you can’t claim to
be a disciplined trader. It is the one undisciplined trade
that will really hurt your overall performance for the
day.
Discipline must be practised on every trade.
NEVER TURN A WINNER INTO A
LOSER.
Being disciplined is of the upmost importance, but it’s
not a something thing, like claiming you quit a bad
habit, such as smoking. If you claim to quit smoking
but you sneak a cigarette every once in a while, then
you clearly have not quit smoking. If you trade with
discipline nine out of ten trades, then you can’t claim to
be a disciplined trader. It is the one undisciplined trade
that will really hurt your overall performance for the
day.
Don’t be greedy.
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YOUR BIGGEST LOSER CAN’T
EXCEED YOUR BIGGEST WINNER.
Keep a trade log of all your trades throughout the
session. If, for example, you know that, so far, your
biggest winner on a day is five e-Mini S&P points, then
do not allow a losing trade to exceed those five points.
If you do allow a loss to exceed your biggest gain then,
effectively, what you have when you net out the biggest
winner and biggest loss is a net loss on the two trades.
NOT GOOD.
THE FIRST LOSS IS THE BEST LOSS.
Once you come to the realisation that your trade is no
goodie’s best to exit immediately. “It’s never a loser
until you get out” and “Not to worry, it’ll come back”
were often said tongue in cheek, by trades in the pit
back in the day. Once the phrase is stated, it is an
affirmation that the trader realises that the trade is no
good. It is not coming back and it is time to exit.
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BE YOURSELF. DON’T TRY TO BE
SOMEONE ELSE.
In all my years as a trader I have never traded more
than a 50 lot on any individual trade. Sure, I would
have liked to be able to trade like colleagues at the bank
who were regularly trading 100 or 200 lots per trade.
However, I didn’t possess the emotional or
psychological skill set necessary to trade such big size.
that’s OK. I knew that my comfort zone was somewhere
between 10 and 20 lots pr trade. Typically, if I needed
more than 20 lots, I would “butcher” the trade.
Emotionally I could not handle that size. the rade
would inevitably turn into a loser because I could not
trade with the same talent level that I possessed with a
10 lot. Learn to accept your comfort zone as it relates to
trade size.
You are who you are.
YOU ALWAYS WANT TO BE ABLE TO
COME BACK TO TRADE TOMORROW.
NEVER put yourself in the precarious position of losing
more money than you can afford. The worst feeling in
the world is wanting to trade and not being able to do so
because the equity in your account is too low and your
brokerage firm will not allow you to continue unless you
submit more funds. Set yourself a daily maximum
downside limit on your performance. Once hit, turn off
your PC and call it a day.
You can always come back tomorrow.
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EARN THE RIGHT TO TRADE BIGGER.
Too many new traders think that because they have
$25,000 equity in their trading account that they
somehow have the right to trade five or ten e-Mini S&P
contracts. This cannot be further from the truth. If you
can’t trade a one lot successfully, what makes you think
that you have the right to trade a 10 10 lot?
New traders should show a profitable ten-day period,
then increase the trades up by one lot. Etc etc.
Remember: if you are trading poorly with two lots you
must lower your trade size down to a one lot.
GET OUT OF YOUR LOSERS.
You are not a “loser” because you have a losing trade
on. You are, however, a loser if you do not get out of the
losing trade once you recognise that the trade is no
good. It’s amazing to me how accurate your gut is as a
market indicator. If, in your gut, you have the idea that
the trade inso good then it’s probably no good. time to
exit.
Every trader has losing trades throughout the session.
A typical trade day for me consists of 33% losing trades,
33% scratches, 33%winners. I exit my losers very
quickly. They don’t cost me much. So, although I have
either lost or scratched over 2/3 of my trades, I still go
home a winner.
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