{"id":253,"date":"2019-11-24T15:32:02","date_gmt":"2019-11-24T14:32:02","guid":{"rendered":"http:\/\/market-and-us.com\/blog\/?p=253"},"modified":"2019-11-24T15:32:02","modified_gmt":"2019-11-24T14:32:02","slug":"stick-to-the-trading-rules","status":"publish","type":"post","link":"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/","title":{"rendered":"Stick to the trading rules – always!"},"content":{"rendered":"\n

Almost every trader tries new strategies and variation in the hope to find the holy grail<\/strong>. But the only way to success with trading stocks is when you stick to the trading rules<\/strong>!<\/p>\n\n\n\n

Here you can read how and why I have focused on this fact again<\/strong> …<\/p>\n\n\n\n

The market check<\/h2>\n\n\n\n
\"\"
SPY<\/strong> (daily candles, source: thinkorswim)<\/figcaption><\/figure>\n\n\n\n

Phew! Do you remember what I wrote last week about believing others<\/a>, especially me? And that I always try not to predict<\/strong> in my weekly summary but to read the price action<\/strong>?<\/p>\n\n\n\n

In my last article I was right.<\/strong> \ud83d\ude00 I expected the SPY<\/strong> creating one or two bullish candles before turning down. And after one green candle a bearish candle with a higher high was the start of a little pullback. But the bears couldn’t reach the breakout level or the monthly top trend line. Wednesday to Friday there were three red candles sitting on the $310 level<\/strong> with their lower shadows hanging below …<\/p>\n\n\n\n

This shows me an unclear situation<\/strong>. The bears formed the red candles, the bulls bought enough not to break the $310.
But looking at the weekly chart you can see that last week was the first bearish one after 6 bullish weeks<\/strong> – each of them with a higher high. So, it is more likely we will get a bearish candle next week<\/strong> than a bullish one. Or at least there should be a sideways movement<\/strong> building a weekly doji like candle.<\/p>\n\n\n\n

Why should I stick to the rules?<\/h2>\n\n\n\n

Have you ever heard that trading reveals your own weaknesses<\/strong>?<\/p>\n\n\n\n

I learned a lot for my life on my journey of trading. But one part of my personality is a difficult one: It was always an advantage in my life that I am an expert in improvisation and optimism<\/strong>. However, for trading it’s a big disadvantage.<\/p>\n\n\n\n

If you do not stick to your trading rules you will never achieve high profits.<\/strong><\/p><\/blockquote>\n\n\n\n

And I had good profits and I never had long losing sequences. I’ve never even reached my starting capital or even less although I had huge losses. Therefore I wanted to find the reason for not achieving high profits<\/strong>. And I am quite sure it’s because I did not stick to the rules with discipline and consequence<\/strong>.<\/p>\n\n\n\n

In the days I sent the weekly summary only to some friends on Telegram I added my statistics for the current and last month<\/strong>. I will also do that in these articles when I updated my statistics file. And then you can try to find the point of change<\/strong> for yourself!<\/p>\n\n\n\n

Good entry and bad exits<\/h2>\n\n\n\n

On Wednesday JBLU<\/a><\/strong> was stopped out and on Thursday AXP<\/a><\/strong>. Both at -1R, so I recorded 2 losses<\/strong>.<\/p>\n\n\n\n

And do you know what? For JBLU<\/strong> the loss was predictable<\/strong>. I have a column in my trading journal named “feeling\/improvement” and I wrote: “looks good but some choppy candles above the breakout level; not very ‘clean’<\/strong><\/em>” after I entered.
And what happened? No clear breakout, down and it seems that the reversal upwards is almost at my stop loss level. Why did that happen? Random movement? Probability event? Yes, but it was predictable because the setup wasn’t the best setup. I know how a good breakout setup looks like and I acted mediocre<\/strong>:<\/p>\n\n\n\n

\"\"
JBLU<\/strong> (daily candles, source: thinkorswim)<\/figcaption><\/figure>\n\n\n\n

That’s what I mean when I say “improvisation”. But now I stick to the rules using always the same approach and risk<\/span><\/strong> and you will see what will happen. Of course, there will be lots of losses. But there will be a change<\/strong>.<\/p>\n\n\n\n

The next crazy stop reached was for AXP<\/strong>:<\/p>\n\n\n\n

\"\"
AXP<\/strong> (daily candles, source: thinkorswim)<\/figcaption><\/figure>\n\n\n\n

I just have to say: The target was at $122.56<\/strong> and on the first day of the trade (the bigger candle built the last high above) the high was at $122.43<\/strong> … just 0.11% more and … \ud83d\ude41
And then it went down. Reaching the top of a channel and it seems that the reversal happens likewise after my stop loss was reached.<\/p>\n\n\n\n

But in addition to those two unfortunate trades my portfolio is growing very good<\/strong> the last weeks. The slope will be bigger because I stick to the trading rules. And I am happy to share my progress with you<\/strong>! <\/p>\n\n\n\n

One of the really good setups<\/strong> I entered on Wednesday:<\/p>\n\n\n\n

\"\"
ITRI<\/strong> (daily candles, source: thinkorswim)<\/figcaption><\/figure>\n\n\n\n

I entered ITRI<\/strong> (Itron Inc.<\/a>) above the high of the confirmation candle of the last low and it’s already up +3.4%<\/strong>.
Stochastic is in overbought area now and the big picture resistance is coming at $80.0 but if the trade will be a loss or a win I will be happy about it<\/strong>.
You will read about a special of this trade when it will reach stop or target but I can reassure you: I stick to the trading rules!<\/em><\/p>\n\n\n\n

\n\n\n\n

Thanks for reading<\/strong> and you should subscribe to the newsletter because there aren’t many subscribers now. So, you would make me very happy with your subscription and I would make you very happy by sending you little trading tools<\/strong> you can’t find on the website!
I will start when there are 20 subscribers. So, maybe you can share my website<\/strong> with your friends?<\/p>\n\n\n\n

The following week will be relaxed: On Thursday the markets will be closed because of Thanksgiving<\/span> and on Friday we will get some low prices for good stocks because of Black Friday<\/span>. \ud83d\ude09<\/p>\n\n\n\n

Enjoy your week, keep commenting (thanks to Alessandro for all his questions) and I wish you good profits<\/span>!<\/p>\n","protected":false},"excerpt":{"rendered":"

Almost every trader tries new strategies and variation in the hope to find the holy grail. But the only way to success with trading stocks is when you stick to the trading rules! Here you can read how and why I have focused on this fact again … The market check Phew! Do you remember […]<\/p>\n","protected":false},"author":1,"featured_media":268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":""},"categories":[5],"tags":[57,68,66,62,9,67,29,24,30,34],"yoast_head":"\nStick to the trading rules - always! - The Market and Us<\/title>\n<meta name=\"description\" content=\"You know, my weekly summaries are totally honest. Here you can read about the importance to stick to the trading rules and how it becomes my focus again.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stick to the trading rules - always! - The Market and Us\" \/>\n<meta property=\"og:description\" content=\"You know, my weekly summaries are totally honest. Here you can read about the importance to stick to the trading rules and how it becomes my focus again.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/\" \/>\n<meta property=\"og:site_name\" content=\"The Market and Us\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-24T14:32:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/market-and-us.com\/blog\/wp-content\/uploads\/2019\/11\/please-stay-on-path.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"714\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"5 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/market-and-us.com\/blog\/#website\",\"url\":\"https:\/\/market-and-us.com\/blog\/\",\"name\":\"The Market and Us\",\"description\":\"Weekly Analysis of the Stock Market, Financial Coding and Online-Tools\",\"publisher\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/#\/schema\/person\/f32a93c5a88a9ec9a9595fff6179b097\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/market-and-us.com\/blog\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/market-and-us.com\/blog\/wp-content\/uploads\/2019\/11\/please-stay-on-path.jpg\",\"contentUrl\":\"https:\/\/market-and-us.com\/blog\/wp-content\/uploads\/2019\/11\/please-stay-on-path.jpg\",\"width\":1000,\"height\":714,\"caption\":\"Stick to the Rules - Sign!\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#webpage\",\"url\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/\",\"name\":\"Stick to the trading rules - always! - The Market and Us\",\"isPartOf\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#primaryimage\"},\"datePublished\":\"2019-11-24T14:32:02+00:00\",\"dateModified\":\"2019-11-24T14:32:02+00:00\",\"description\":\"You know, my weekly summaries are totally honest. Here you can read about the importance to stick to the trading rules and how it becomes my focus again.\",\"breadcrumb\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/market-and-us.com\/blog\/\",\"url\":\"https:\/\/market-and-us.com\/blog\/\",\"name\":\"Home\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#webpage\"}}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#webpage\"},\"author\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/#\/schema\/person\/f32a93c5a88a9ec9a9595fff6179b097\"},\"headline\":\"Stick to the trading rules – always!\",\"datePublished\":\"2019-11-24T14:32:02+00:00\",\"dateModified\":\"2019-11-24T14:32:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#webpage\"},\"commentCount\":8,\"publisher\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/#\/schema\/person\/f32a93c5a88a9ec9a9595fff6179b097\"},\"image\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#primaryimage\"},\"keywords\":[\"AXP\",\"charts\",\"ITRI\",\"JBLU\",\"SPY\",\"stick to the rules\",\"stock\",\"strategy\",\"trading\",\"weekly summary\"],\"articleSection\":[\"Weekly Summary\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/market-and-us.com\/blog\/stick-to-the-trading-rules-253\/#respond\"]}]},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\/\/market-and-us.com\/blog\/#\/schema\/person\/f32a93c5a88a9ec9a9595fff6179b097\",\"name\":\"Alexander\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/market-and-us.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"http:\/\/market-and-us.com\/blog\/wp-content\/uploads\/2019\/10\/redakteur-96x96.png\",\"contentUrl\":\"http:\/\/market-and-us.com\/blog\/wp-content\/uploads\/2019\/10\/redakteur-96x96.png\",\"caption\":\"Alexander\"},\"logo\":{\"@id\":\"https:\/\/market-and-us.com\/blog\/#personlogo\"},\"description\":\"Alexander bought his first stock in October 2009 without knowing about the luck for this point of time. In 2016 he started to trade, since 2017 he notes down watchlists and statistics every day and because he knows how to code since he was a child, he uses Python, PHP, HTML5 and JS for making the daily to-dos easier. Because many of his friends wanted him not to stop writing about the markets he started this blog to share his ideas and tools.\",\"sameAs\":[\"https:\/\/market-and-us.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yasr_visitor_votes":{"number_of_votes":0,"sum_votes":0,"stars_attributes":{"read_only":false,"span_bottom":false}},"_links":{"self":[{"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/posts\/253"}],"collection":[{"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/comments?post=253"}],"version-history":[{"count":10,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/posts\/253\/revisions"}],"predecessor-version":[{"id":267,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/posts\/253\/revisions\/267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/media\/268"}],"wp:attachment":[{"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/media?parent=253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/categories?post=253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/market-and-us.com\/blog\/wp-json\/wp\/v2\/tags?post=253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}