General Trading Tips

Tips that apply across Technical Analysis, Fundamental Analysis, and Options: routine, risk, journaling, mindset, and how to combine the three disciplines.

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1. Routine and Preparation

• Pre-market (daily): (1) Check higher timeframe trend and key levels. (2) Note session (Asian/London/NY) and news (economic calendar). (3) Mark support/resistance and today’s bias. (4) Set max risk for the day (e.g. 2% total). Same routine every day reduces impulsive decisions.

• Pre-trade (every trade): (1) State the setup in one sentence. (2) Define entry, stop, target. (3) Calculate size from risk%. (4) Confirm you’re calm and not revenge/FOMO trading. If any step is missing, don’t trade.

• Post-market: (1) Log every trade (setup, P&L, emotion, rule break). (2) Quick review: win rate today, any pattern (e.g. “lost when I traded first 15 min”). (3) No new analysis or “one more trade” after you’re done. Close the platform.

• Weekly: (1) Review journal (win rate, average R, rule breaks). (2) Note what worked and what didn’t. (3) One small adjustment if needed (e.g. “no trades first 15 min”). Don’t overhaul the plan every week.

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2. Risk and Position Sizing

• One number: Pick one risk per trade (e.g. 1%) and never exceed it. No “this trade is special so I’ll risk 3%.” Consistency beats occasional home runs.

• Stop before entry: If you don’t know where you’re wrong (stop), you don’t have a trade. Define stop before entry; then size so that (entry − stop) × size = risk% of account.

• Max daily loss: Set a daily loss limit (e.g. 2% of account). When hit, stop trading for the day. Prevents revenge trading and runaway drawdowns.

• Correlation: If you have 3 longs in the same sector, you have concentrated risk. One bad day can hit all three. Diversify across sectors or reduce size per name.

• Leverage: More leverage = faster blow-up when wrong. Use leverage only when you’re experienced and have strict risk rules. Beginners: minimal or no leverage.

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3. Journaling and Review

• Log every trade: Instrument, timeframe, setup type, entry, exit, stop, target, P&L ($ and R), date/time, emotional state (calm, fearful, greedy, revenge), rule adherence (yes/no; if no, what broke). Takes 2 minutes; pays off in pattern recognition.

• Weekly metrics: Win rate, average R (or avg win vs avg loss), number of trades, rule breaks. Track whether you’re following the plan. If rule breaks are high, simplify the plan or add a single constraint (e.g. “no trade 30 min after a loss”).

• Monthly: Expectancy (avg R per trade), max drawdown, best/worst trades. By setup type: e.g. “pullbacks 60% win rate, breakouts 40%.” Double down on what works; reduce or drop what doesn’t.

• No blame, no excuse: Journal is for learning. “Market was manipulated” doesn’t help. “I placed stop at obvious low—next time I’ll use a buffer” does.

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4. Mindset and Psychology

• Accept losses: Losses are part of trading. Even 60% win rate means 40% losses. One loss doesn’t mean your system is broken. Judge over many trades.

• No revenge: After a loss, the urge to “get back” is strong. Rule: No trade for 30 min (or rest of day). Revenge trades usually lose more.

• No FOMO: Missing one move is okay. There will be other setups. Chasing usually means bad entry and quick stop. “No trade” is a valid outcome.

• Confidence vs overconfidence: After a winning streak, don’t increase size or relax rules. Stick to the same risk% and setup criteria. Overconfidence leads to blow-ups.

• Trading is a marathon: Focus on process (did I follow my plan?) not outcome (did I make money today?). Good process over time leads to good results.

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5. Combining TA, FA, and Options

• FA for “what”: Use fundamentals to screen and rank ideas. Only consider names that pass your quality and value filters. Avoid trading (especially options) on names you wouldn’t own as stock, unless it’s a defined short-term trade.

• TA for “when”: Use technicals to time entry (e.g. pullback to support, breakout with volume) and to set stop and target. Don’t buy a “cheap” stock without a technical plan—you may sit in a drawdown for months.

• Options for “how”: Use options to express the view (call/put), limit risk (spreads), or hedge (protective put). Don’t use options to override a weak FA or TA thesis—they amplify mistakes too.

• Example workflow: (1) FA: Stock is undervalued and high quality → on watchlist. (2) TA: Wait for pullback to 50 EMA and bullish engulfing → entry zone. (3) Enter stock or buy call; stop below support; target next resistance or FA-based price. (4) If using options: choose expiration that matches expected time to target; size by max loss.

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6. When Not to Trade

• After a big loss: Pause. Don’t trade to “get back.” Wait until you’re calm and the next setup is clear.

• When you’re emotional: Angry, anxious, overexcited, or tired. Close the platform. Trade another day.

• When there’s no setup: It’s okay to have zero trades in a day or week. Forcing trades kills edge.

• Before major news: Unless you’re intentionally trading the event (with a plan), reduce size or stay out. Gaps and whipsaws can hit stops or trigger assignment.

• When the plan is unclear: If you’re “figuring it out as you go,” you’re not trading—you’re gambling. Step back and wait for a setup that matches your written plan.

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7. Continuous Improvement

• One change at a time: When you improve your process, change one thing (e.g. “add 30-min pause after loss”). See the effect over 20+ trades before changing again. Multiple changes at once make it impossible to know what worked.

• Study your losers: Review losing trades more than winners. Were they bad setups (shouldn’t have entered)? Bad execution (moved stop, didn’t take profit)? Bad luck (good setup, stopped out)? Learn from each.

• Study your winners: What did winning trades have in common? Same setup type? Same session? Same R:R? Do more of that.

• Keep a trading plan document: Written rules: what you trade, when you enter/exit, how you size, when you don’t trade. Update only after review (e.g. monthly), not in the heat of the moment.

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8. Quick Reference Card

Do	Don’t
Define stop before entry	Enter without a stop
Size by risk% (e.g. 1%)	Size by “gut” or to “make back” a loss
Log every trade	Skip journaling after a bad day
Wait for clear setup	Chase or force trades
Follow your written plan	Change rules mid-trade or when emotional
Use FA for selection, TA for timing	Trade on one discipline alone (unless that’s your edge)
Pause after a loss	Revenge trade
Cap daily loss and trades	Trade through a bad day with no limit

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See also: Master Summary | Trading Setups Checklist | Trading Psychology.