The end of a trade must be one of the following:
1. A big win.
2. A small win.
3. Breakeven.
4. A small loss.
It must never be a *big loss*.
[[202007310030 Percentage gain to break even]]
GET IN QUICK. GET OUT FASTER.
Never [[risk]] more than you expect to gain.
## Evergreen trading lessons, reminders, and best practices
Plan
[[202006031121 The game is not to predict but to react.]]
[[202006081150 Follow through and pull the trigger.]]
[[202006031320 Pulling the trigger can be learned.]]
[[202006031322 The plan must be executed.]]
[[202006081152 I deliberately execute my plan.]]
Opportunity
[[202006031324 Opportunities are abundant, but they expire.]]
[[202006031336 Opportunities present themselves again.]]
[[202007061759 Try to take every opportunity to learn, execute, and do.]]
Loss
[[202006031334 Accept a loss quickly and move on.]]
[[202006081149 Cutting losses quickly]]
Attitude and mindset
[[202006081158 When failure is the norm, resilience becomes second nature.]]
[[202007071447 Principles of trading consistency]]
[[202006081151 The intention that it is a trade]]
[[202006081154 I have reasonable expectations.]]
[[202006081159 The market exposes your weakness.]]
[[202006081155 Discipline that I prove to myself]]
[[202007071456 Qualities of top traders and primary trading fears]]
[[202006081156 Neither avaricious nor insatiable]]
[[202007071950 Rigid in rules, flexible in expectations]]
[[202007072203 Think probabilistically.]]
[[202012221934 Sell high, accept uncertainty, think probabilistically and independently]]
[[202008131605 Bad trading is emotional and feels like gambling.]]
Price action
[[202006031328 In strong uptrends, pullbacks are eagerly bought.]]
[[202006031330 When price stalls, rather than gain momentum, a sell-off is more likely.]]
[[202006031312 There is no need to buy or sell at the bottom or top.]]
Execution
[[202006151303 Enter the trade as close as possible to the invalidation point.]]
[[202101231641 Enter with a small position first.]]
[[202101231426 Take profit at 20–25% and sell into strength.]]
[[202101231452 I take profit when I achieve high gains in a compressed amount of time.]]
Quotes about trading
[[202006081200 I like to just ride the ups.]]
[[202006081201 Even when you're right, you can get screwed.]]
## Personal observations, personal behavior
[[202006081203 After a breakout, I'm afraid to jump in.]]
[[202006141810 I must improve my emotional response to early profit-taking.]]
[[202006141823 I'm better at cutting losses and getting out of the way of a dump.]]
[[202006141825 Price action should not affect my process and risk management.]]
[[202006141901 I expect too much of a pullback in uptrends.]]
[[202006150007 Acquiring pattern recognition in price action]]
## Life lessons and other notes
[[202007061805 It's in doing something that you learn the skill and importance of doing nothing.]]
[[202007072258 Deactivate bad beliefs.]]
[[202012162146 Calculate risk and act decisively.]]
[[202012311406 I've remained unharmed.]]
[[202101251257 One hundred duck-sized horses of WSB]]
### Related
[[investing]]
[[personal finance]]