Excerpted from: The Art of Currency Trading by Brent Donnelly (Wiley, 2019)
Rule #1: Don’t blow up. Avoid risk of ruin above all else.
Rule #2: Adapt or die.
Rule #3: Do the work. Read the speeches. Analyze, read, and study.
Rule #4: If you look hard enough, you can always a find a tech level to justify a bad trade!
Rule #5: ‘‘It’s a big level’’ is not a good enough reason to put on a trade.
Rule #6: No mo’ FOMO. Never worry about missing it. There will always be another trade.
Rule #7: Flat is the strongest position. When in doubt, get out.
Rule #8: It doesn’t always have to make sense.
Rule #9: Never fade unexpected central bank moves. Jump on them!
Rule #10: Making money is hard. Keeping it is harder.
Rule #11: Successful traders make more money on up days than they lose on down days.
Rule #12: Anything can happen.
Rule #13: Keep a trading journal. Thoughts are abstract and fuzzy. Writing is concrete and solid.
Rule #14: There is a time and a place to go big.
Rule #15: Good traders vary bet size.
Rule #16: It always looks bid at the highs. It always looks heavy at the lows.
Rule #17: You control the process but you do not control the outcome.
Rule #18: Each trade is a drop of water. The market is an ocean.
Rule #19: Know your edge.
Rule #20: Know your time horizon.
Rule #21: Great traders have a plan. And they (mostly) stick to it.
Rule #22: Tight/aggressive wins.
Rule #23: Be flexible. Don’t get married to a view.
Rule #24: Do not let random, low-conviction trades kill you.
Rule #25: Have fun. If you don’t enjoy it, what’s the point?
