3 Simple Rules I Follow Before Entering Any Trade

 


As a trader, it’s easy to get caught up in the excitement of the market.
But after several painful losses and emotional decisions, I realized that I needed rules — not just strategies — to survive and grow.

Here are the 3 basic rules I try to follow before hitting the “Buy” or “Sell” button. They may seem simple, but they’ve saved me from many bad trades.

📌 Rule #1: Always Mark Key Levels First

Before anything else, I mark support and resistance zones on the chart — usually on H1 or H4 timeframe.
If price is stuck in the middle with no clear level nearby, I stay out.

“No level, no trade.”

This keeps me from chasing random candles and helps me focus on areas where price is more likely to react.

📌 Rule #2: Wait for Confirmation – Not Just Assumption

I used to enter trades based on what I thought would happen. Now, I wait for:

  • Clear candlestick patterns (like pin bars, engulfing)

  • RSI behavior (overbought/oversold + divergence)

  • Reactions at support/resistance

If I don’t see a clear signal or pattern that I’ve tested before, I skip the trade.

“No setup, no entry. No guesswork.”

📌 Rule #3: Know My Exit Before I Enter

Every time I enter a trade, I already know:

  • Where my Take Profit (TP) is

  • Where my Stop Loss (SL) is

  • How much I’m willing to lose

Even with small capital, I treat every trade like it matters. Risk management is my way of respecting my own money and mindset.

“A trade without a plan is a plan to lose.”

Bonus Rule: If I’m Emotional, I Don’t Trade

If I just had a loss, feel stressed, or even too excited — I pause.
Trading in the wrong emotional state usually leads to revenge trades or overconfidence.

Final Words

These 3 simple rules aren’t magic. I still break them sometimes — and I usually regret it.
But every time I follow them, I trade with more confidence and less regret.

Trading is not just about catching the move — it’s about protecting your mindset and your capital.

Thanks for reading. What are your rules before entering a trade? Feel free to share in the comments!

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