The Two Pillars That Changed My Trading

Wait 5 sec.

The Two Pillars That Changed My TradingCanadian Dollar/Japanese YenFX:CADJPYTheInvestor_DiaryAfter years of trial and error, I shifted my focus from searching for signals to building a foundation. For me, that foundation rests on two pillars: Pillar 1: Risk Management Risk per trade: Fixed % of account. Currently, mine is 0.5% Minimum Risk/Reward: 1:2. I try as much as possible to make this minimum a rare occasion; I try to aim for higher, but it all depends on other factors of the setup. Position sizing: Calculated precisely before every entry. I base it on three factors: the current account balance, risk per trade, SL distance. Pillar 2: The Trading Plan A written, unambiguous set of rules for every action. Based on price action and market structure. Designed to be followed without emotion or deviation. These pillars work together. The plan gives me confidence, and the risk management gives me the longevity to be wrong. This mindset shift made all the difference. I document my journey applying these principles in detail elsewhere. What's one rule in your trading plan you won't break?