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Trading Psychology · Module 3: Discipline & Process · Lesson 3

Creating Rules

Beginner 6 minLesson 12 of 13

Learning objectives

  • Explain creating rules in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Written, specific rules for entries, exits, risk, and when to stop trading.

Why it matters

Rules remove in-the-moment decisions.

How markets interpret it

If-then statements are easiest to follow.

Key takeaways

  • Make rules specific and testable.

Knowledge check

Which is a good rule?

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