10 Commandments by Lewis Borsellino

Lewis Borsellino is a phenomenal personality who left a huge mark in the history of the development of stock trading.

His phenomenal successes became possible thanks to strict adherence to the rules that he set for himself as a trader.

We all understand perfectly well that only strict adherence to the rules and strict control over risks will allow us to maintain stable growth, and unprofitable trades will become part of everyday life, which simply cannot unsettle us.

For all novice traders who decide to take this path, Lewis Borsellino in his book outlines 10 commandments, following which becomes mandatory if you want to achieve real success.

All these commandments are very simple and banal, but even professionals in their field cannot challenge them, so I suggest you get acquainted with each of them and hope that you will be able to comply with them.

1 Trade for success

The vast majority of newcomers come to the stock exchange in search of quick and easy money, and their main goal is to earn as much as possible and with less effort. Unfortunately, this is more the fault of brokers who form the wrong opinion with their false advertising, but people come here mainly for this.

Lewis Borsellino argues that you need to trade for the sake of success, and money will come to a successful trader on its own, since without one there cannot be a second. Your task is to work profitably and not set specific goals in monetary terms.

This commandment has simply been confirmed by time, because if you set out to earn, say, $300 today for your needs, then at best you will break even, and at worst you will suffer losses.

2 Discipline

The profession of a trader requires complete independence from the employer. Yes, if you are a trader, then no one will force you to wake up at 7 am to check your positions and no one will tell you what to do and how. To be a trader you need to master discipline, since everything that happens to you and your account will depend only on you.

Remember, discipline is a key factor, without which no trader has ever achieved success. You must strictly follow the rules that you have limited yourself to, because no one will force you to perform clear actions except yourself.

3 Know yourself

All people, regardless of profession, have strengths and weaknesses. First of all, this concerns character, reaction to unforeseen situations and simply habit. Lewis Borsellino advises finding your strengths and weaknesses, analyzing how certain disadvantages and advantages affect your trading.

Unlike most psychologists, he suggests improving our strengths, since working with shortcomings takes a lot of effort, and the result is usually disappointing.

It’s always easier to learn how to do something better if you know how to do it than to retrain yourself to do it differently. Of course, Lewis is not advocating not working on your weaknesses, but before you start doing the hard stuff, try to improve what comes easily to you.

4 Get rid of your ego

Ego always accompanies a successful trader, and the more successful a person becomes, the higher his ego. The fact is that in the market your ego is simply destructive, because the market does not care what you said or thought.

A profitable series of trades boosts the trader’s ego so much that he begins to forget about any discipline, risk management and becomes overconfident, because I “Told” that the price would go down. In fact, no one hears you and does not take your opinion into account, since the market lives its own life and if you are overly self-confident, it will quickly crush you.

All trades you make must be clear and planned, because the phrase “The market should go there because I said so” does not work in real life.

5 In the market, forget about such concepts as hope, prayer, desire

Despite the fact that religion teaches us to pray and hope, it is not benefactors who compete with each other on the stock exchange. Remember, you are making money when someone else is losing money at this moment, so you should not believe and hope that someone will hear your prayers.

Your task is to always strictly follow the rules of your trading tactics, and this is especially true when it comes to risk management. Hoping that the market is about to turn around and moving your stop loss is not just a bad habit, it is a proven fact that will ruin your account in the future.

6 Let profits run and cut losses quickly

This rule will be useful not only for beginners, but also for established traders. The fear of losing what we have already earned forces us to enter into transactions with small profits, and with stop orders it is always the opposite. Try to cut losses and allow profitable positions to grow.

For example, limit yourself in time or points, use various trailings, but never rush to run away from the market with pennies.

7 Know when to trade and when to wait

This rule applies to those traders who do not take the 2nd and 4th commandment seriously. The fact is that many traders like to look for signals to enter a position where there is simply none. Remember, the forex market is not a game.

Separate establishments have been created for gambling, and for a successful trader to be able to wait out uncertainties in the market and strictly follow the signals of the strategy is not a whim, but a forced measure.

8 Love your losing and winning trades equally

With this commandment everything is quite simple. We look at profitable positions with pride and analyze losses with humiliated dignity. It is necessary to take a sober approach to analysis and clearly understand that you learn from mistakes!

9 After three losing trades in a row, take a break

This commandment will allow you to avoid the state of a gambler who is ready to bet everything in order to win back losses. Thanks to the pause, you will be able to cool down your ardor and continue trading with a cool head.

10 Rules must not be broken

If you have a hard time following all these rules, chances are the market will punish you. All of the above commandments will help you master your emotions and be impartial when your money is on the line.   

Read the story of trader Lewis Borselino http://time-forex.com/treyder/luis-borselino