Need Help?  

1-888-998-3548 or 646-214-7240

20 Rules for Trading Success

Michael Lee
Jan 11, 2010, 4:56 PM

Sign up for a free 5-day trial to my Momentum Trading Mentoring Room (with Steve Levay)


1. Create a game plan and stick to it! You should have a reason for entering each trade and always have a stop-loss price and a level to take profits before you enter a position. In the long-run, discipline is the key to consistent success.

2. You must learn to adapt quickly to changes. If a short-term trade isn’t working, don’t hesitate to switch sides. The market and stocks can change very quickly, and you must be able to change with them. Don’t be stubborn!

3. Don’t get married to trades! If a stock isn’t working for you and you are losing money, you don’t have to make it back in that stock. Likewise, don’t force a trade in a stock only because it has made you money before. Always just trade the best set-ups.

4. Do not try to bottom fish or pick tops. The trend is your friend; when you find it, follow it. Don’t trade with a bias because you think something should or shouldn’t happen, let the stock tell you what its next move will be. Trying to identify tops and bottoms is a losing way to trade in the long-run.

5. Accept losses, they are part of the game! Prepare yourself mentally and emotionally for this eventuality. Try to limit losses when you are not on top of your game and take a break if you need one.

6. Keep it simple. If a trade is working for you, stick with it!

7. Stay confident and positive. Don’t hesitate to take a step back or ask for help if you are not feeling good about your trading.

8. Be consistent with your game plan, size and execution. Don’t make a winning trade in 300 shares and a losing one in 1,000! Keep your tiers consistent and stick to your game-planned trades.

9. Stick to your trade, believe in your preparation! If you like a trade set-up, stick with it until it works or is no longer compelling. Even if it doesn’t work the first couple times, be patient and keep it on your radar.

10. In a losing trade, if you have an out, get out! The first stop is the cheapest stop in a losing position. Do not give into the temptation to let a losing stock run, because you will usually end up getting killed. Small losses are part of trading.

11. When you are wrong, admit it and move on. Don’t waste time with a trade that is no longer compelling.

12. Give your trade time. If you believe in the trade, wait for it to play out and stick to your game plan.

13. Never let a winning trade turn into a losing one! Take profits when you can, you can always get back in later.

14. Try to capture the full move of a stock. While it is important not to let winners turn to losers, you will make your good money from capturing larger moves. It is ok to give a little back if you have made a lot on a trade, but know when to let it go.

15. Recognize the type of trade it is. If it is a swing trade, don’t impulsively get out. If it is a quick trade, don’t get greedy. If it is a slower moving stock, be patient. If you are on, push yourself. Always be aware of the type of trade you are in and act accordingly.

16. If you are feeling good and happy about your day, it is ok to relax and enjoy the money. Don’t turn a great morning into a losing day. Catch yourself, it’s not worth it. In addition, if you have a bad morning and make it back to flat or a little green, call it a day and declare victory! If you push it, you are likely to end up back with a losing day.

17. Trade the same way whether you are up or down. Traders tend to press when they are down and get careless when they are up. Stick with what got you there.

18. Trade stocks that are in play. Don’t trade something just to trade it, make sure there is a catalyst. Volume is a trader’s best friend.

19. Stick with winners and don’t add to losers. Make sure you capture big moves in winning trades and get out of losing trades quickly.

20. Trust yourself! You will always make more money trading your own strategy than someone else’s.

Last Updated ( Wednesday, 19 March 2014 14:24 )
© 2012 T3 Live, LLC
  1. T3 LIVE, LLC is NOT a Broker Dealer. T3 LIVE, LLC engages in trader education and training. T3 LIVE, LLC offers a number of products and services, both electronically (over the internet through and in person. Through T3 TV, an online video network that is available through, T3 LIVE, LLC provides LIVE pre/post market and stock analysis. Through, T3 LIVE, LLC offers the "Virtual Trading Floor", a community through which independent traders (subscribers), as well as select T3 Trading Group, LLC Traders, observe a virtual trading floor environment (as described below) for educational purposes. T3 LIVE, LLC also offers web-based, interactive training courses on demand.
  2. Subscribers are able to see if traders are long or short and what symbols as part of best practices in regards to disclosure. Subscribers do not see trader' screens, trades or size of positions. T3 requires traders to disclose whether they are long or short and which stocks they are trading to ensure that the community is fully informed and that traders substantiate their opinions. This approach is modeled after the analyst disclosures that accompany commentary on particular stocks on CNBC or other financial news media (as per FINRA Rules 2210 and 2711).
  3. The seminars given by T3 LIVE, LLC are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.
  4. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE, LLC or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.
  5. The videos and blogs shown on T3 LIVE, LLC are for informational purposes only. The investment ideas and expressions of opinion may contain forward looking statements and should not be viewed as recommendations, personal investment advice or considered an offer to buy or sell securities. T3 LIVE, LLC statements and opinions are subject to change without notice and should be considered only as part of a diversified portfolio.
  6. T3 LIVE, LLC and T3 Trading Group, LLC are separate, but affiliated companies.
  7. T3 Trading Group, LLC is a Registered SEC Broker-Dealer and Member of the CBOE Stock Exchange (CBSX All trading conducted by contributors on Virtual Trading Floor is done through T3 Trading Group, LLC. For more information on T3 Trading Group, LLC please visit
  8. Global Trading Plus, LP (“GTP”) is the exclusive provider of T3 LIVE, LLC products in Europe, all the former Soviet Republics (dating back to 1991), and Israel. GTP is a separate company and has no common ownership with T3 LIVE, LLC, T3 Trading Group, LLC.