Trade the process, not the prediction.
Traders who last win by controlling losses, following a written plan and measuring every trade. Use the checklist before every order, whether you are placing your first trade or your ten-thousandth.
01Pre-trade checklist
Every box ticked before the order goes in. One empty box means no trade.
Setup
Risk
Order
Mindset
02Position size
Decide what you'll lose first. The distance to the stop sets the size.
03Loss limits
Set while calm. Never overridden in the moment.
| −1.5% day | or 2 losing trades: done for the day |
| −3% week | Half size for the next week |
| −6% month | Stop. Review every trade; paper trade until the cause is found |
| −10% peak | Back to paper trading and re-test the setup |
Never: add to a loser, widen a stop, or trade money you need for bills.
04Habits of traders who last
Each one can be practised.
Trade only written setups with evidence from 50+ past examples.
Risk 0.5–1% per trade, stop set before entry, never widened.
Skip trades whose realistic target is under 2× the risk.
Market, timeframe, setup, entry, exit and size decided before the session.
Grade every trade "followed plan: yes/no". Aim for 90%+ yes.
Cap trades per day. No setup means no trade, and that's a good day.
Losses are a business cost. No revenge trades, no chasing.
Log every trade the same day; review weekly and change one thing.
05The path to real money
Move to the next stage only when its gate is met. Experienced traders: run every new strategy through stages 3–5.
- Learn
Order types, slippage, charts, sizing, taxes.
Gate: size a trade unaided - Focus
One market, one timeframe, one setup.
Gate: rules fit in one paragraph - Backtest
50+ historical examples with bar replay.
Gate: positive expectancy after costs - Paper trade
30+ live trades or 2 months, full checklist.
Gate: positive and 90%+ on plan - Small size
Money you can afford to lose; 0.25–0.5% risk.
Gate: 50+ trades, no limit broken - Scale
Step risk toward 1% per positive 50-trade block.
Step back after a 10% drawdown
06Measure in R
R = a trade's result divided by the amount risked. Expectancy must be positive before size goes up.
Example: 45% winners averaging 2.2R and 55% losers averaging 1R = 0.45 × 2.2 − 0.55 × 1 = +0.44R per trade. A low win rate is fine when winners are bigger than losers.
07Weekly review
Journal: date, symbol, setup, entry, stop, target, size, exit, R, followed plan?, emotion, lesson.
- Did I follow the plan on every trade? Which rule broke, and why?
- Expectancy so far, by setup, in R.
- Best and worst trade: what did each teach?
- One change for next week, written into the plan.