1) Always Define Your Risk Before Entering
Before clicking BUY or SELL, decide:
✔ How many pips you will risk
✔ How much money that equals
✔ Your stop-loss level
If you can’t answer these before entering, it’s not a real trade — it’s a guess.
🔹 2) Use a Fixed Rule (Like 1% or 2% Rule)
A very common and effective rule is:
➡ Risk only 1% of your account per trade.
This means if your account is $1000, your maximum loss on a trade is $10.
This keeps losses small and your psychology sane.
🔹 3) Use Proper Position Sizing
Most emotional losses happen because traders use too much lot size.
You should ALWAYS calculate your position size based on:
✔ Account balance
✔ Stop-loss distance
✔ Risk percentage
This prevents accidental over-risk.
🔹 4) Set Daily and Session Loss Limits
Good traders don’t just have stop-loss rules — they also have daily loss limits.
Example:
➡ If you lose 3 trades in a row or hit 3% of daily loss — you STOP trading for the day.
This prevents emotional revenge trading.
🔹 5) Journal Every Trade Emotionally and Logically
After every trade — win or lose — write down:
✔ Why you entered
✔ What your risk was
✔ How you felt before/during/after
✔ Whether it matched your strategy
After a few weeks you will see patterns — and correct them.
🔹 6) Review Your Trading Rules Weekly
Ask yourself:
Did I follow my plan?
Did I use the right stop loss?
Was the risk too large?
Am I trading while emotional?
This reflection builds discipline.
