Heather’s Top 10 Golden Rules

  

1.   Everything in trading is a choice. You are 100% responsible for all your profitable and unprofitable results.

 

2.   Trust your process and methodology. Trust you can and handle whatever the market throws at you. Trust you will always act in your best interest.

 

3.    Context is critical. Relative information is much more powerful than absolute. e.g. How far has price moved? How fast? Is it accelerating or decelerating?

 

4.   Don’t fight the market! Trade predominantly with the slope of $NAMO and the big picture. If the market is rallying or in an uptrend focus primarily on longs. If falling or in a downtrend focus mostly on shorts.

 

5.   Don’t fight the trend! Err on the side of the trend (unless obviously extended or showing serious signs of weakness/ breaking down). Next err on the side of your overall hypothesis.

 

6.   Never lose track of the 60 (position and swing trading) or 10-minute (swing and day trading) trend!

 

7.   Never give in to “just this once”. Practice patience (to wait for setups & triggers) and discipline (to execute entry and exit triggers with flawless precision) in every moment. Ignore temporary impulses (i.e. what you want ‘now’ like avoiding a loss or disappointment, relief from anxiety or fear) and focus on what you really want (i.e. your long term best interest and goals like being a consistently profitable trader)

 

8.  Remember losses are feedback from the market, the market's way of telling you to make adjustments, that your stock selection, hypothesis about direction or timing is wrong. Remember that staying wrong it a choice!


9.   Maintain emotional balance with continual self-awareness. Be honest and clear about biases (actively look for contradictory evidence), feelings, thoughts, beliefs (are they helpful or hindering). Have an effective plan of action to maintain emotional control (e.g. mediation & visualization, reasonable position sizes and logical stops, selling a small portion of one’s profitable position, etc.)

 

10.         Focus on process not money! Focus on process not losses or profits. Focus on process not your win/loss statistics. Focus on process not what you fear, not what you hope will happen, not why you’re “right” and the market is wrong. FOCUS ON PROCESS for success.