Good trading is mostly about doing the boring things every single time. We have boiled ours down to three rules, and every trade idea we send follows them with no exceptions. This article explains each rule, why it exists and how it protects a gold trader from the mistakes that cause the most damage.
Rule one: stop-loss first
The exit is decided before the entry. Always. Before we think about where to get in, we know where the trade is wrong and where it closes. That is the stop-loss, and it goes on every idea alongside the entry and take-profit. Deciding the exit first keeps the maximum loss fixed and removes the temptation to "give it a bit more room" once emotions are involved.
Rule two: same size
Lot size is matched to the account, not to how confident we feel. A trade that looks perfect gets the same size as one that looks ordinary, because confidence is not information. Trading bigger on a hunch is how a normal loss turns into a painful one. Consistent sizing also makes results meaningful: you can judge the method rather than a few oversized bets.
Rule three: no revenge
A loss does not change the plan. There is no doubling up to win it back, no jumping into the next move out of frustration. We wait for the next proper setup, however long that takes, because gold will present another one. Revenge trading feels productive and is reliably destructive. Trade with rules, not feelings, and the losses stay small enough to recover from.
Key takeaways
- Decide the stop-loss before the entry, every time
- Lot size matches the account, not your confidence
- A loss does not change the plan: wait for the next setup
Common questions
What is revenge trading?
Revenge trading is placing impulsive trades after a loss to win the money back. It usually leads to bigger losses, which is why a loss should never change the plan.
Should you use the same lot size on every trade?
Yes, as a beginner. Matching lot size to your account rather than your confidence keeps losses consistent and makes your results easier to judge.
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