The three hard rules
Hard rules are non-negotiable. They're decided once, in a calm state, and never re-litigated mid-trade. Start with these three:
- Risk cap per trade. Never risk more than 0.5–1% of your account on a single idea. Set it with the Risk Manager before you enter.
- Daily loss limit. After 3 losses (or a fixed % drawdown) in one day, you're done. No exceptions. This single rule prevents most account blow-ups.
- A+ setups only. If it's not a setup from your playbook at a level you pre-defined, you don't take it.
Why rules beat goals
"Make $500 today" is a goal — and it pushes you to overtrade when the market won't cooperate. "Only take A+ setups, max 3 trades" is a rule — and it protects you on exactly the days a goal would hurt you.
Pre-market routine (15 minutes)
The pre-market routine puts your thinking brain in charge before the survival brain wakes up:
- Identify the broader market direction — overall trend and key levels.
- List 3–5 stocks on your watchlist, each with the setup, entry zone, stop, and target written down in advance.
- Check the news calendar — earnings, FOMC, CPI. These can break setups instantly.
- State out loud (or write): "Today I take only A+ setups from my watchlist. Maximum 3 trades."
During the session
Once the bell rings, your only job is execution. If a trade isn't on your prepared list at your prepared level, it doesn't exist. When you feel the urge to deviate, that's the signal to step back — the urge itself is information that the survival brain is driving.
If you have to ask yourself "should I take this?", the answer is no. A+ setups don't require debate.
Post-market routine (10 minutes)
- Journal every trade you took — we cover exactly how in Module 4.
- Score your plan-adherence honestly, 1–5.
- Note one thing you did well and one mistake.
- Close the platform. Don't doomscroll charts at night — it doesn't help, and it erodes the boundary between work and rest.