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The folks over at Tradecision came up with a list of Golden Trading Rules Any Trader Should Bear in Mind that we thought was definitely worth sharing.

They point out that while software (such as Tradecision or MetaStock) can help you with your trade decisions, there are some key rules that you must follow in order to ensure that you trade with a profit.

These include:

1. Maximize your profits, not the number of trades
2. Don’t risk more than 1-3% of [your] capital
3. Be patient enough to wait for good trades
4. Be patient enough to avoid closing a profitable position too early
5. Don’t tie yourself down with your “first-blush” opinion about a position
6. Immediately close your position when the initial conditions are disrupted
7. Make a decision about the stop level before entering a position
8. Cut losses early, protect profits with trailing stops
9. Return to a trend if your previous assumptions turn out to be wrong and the trend is progressing
10. Focus on big market moves. Don’t try to catch small, noisy fluctuations
11. Focus on price patterns and formations rather than the price levels or support-resistance levels
12. Make your own trading plan
13. Your trading method should be in sync with your personality
14. Maintain discipline to be able to strictly follow your plan and manage risks
15. It is only you who is responsible for your trading results. Don’t try to blame the market, your friends and brokers and so on

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