10 Commandments by Lewis Borsellino

Lewis Borsellino is a phenomenal figure who left a huge mark on the history of stock trading.

His phenomenal success was made possible by strictly following the rules that he set for himself as a trader.

We all understand perfectly well that only strict adherence to rules and strict risk control will allow us to maintain stable growth, and that losing trades will become a part of everyday life that simply cannot throw us off track.

For all aspiring traders who have decided to embark on this path, Lewis Borsellino outlines 10 commandments in his book, following which becomes mandatory if you want to achieve real success.

All of these commandments are very simple and banal, but even professionals in their field cannot dispute them, so I suggest you familiarize yourself with each of them and hope you can follow them.

1 Trade for success

The vast majority of newcomers come to the exchange looking for quick and easy money, their primary goal being to earn as much as possible with as little effort as possible. Unfortunately, this is largely the fault of brokers, who create false perceptions with their false advertising, but that's precisely why people come here.

Lewis Borsellino argues that you trade for success, and money will come to a successful trader naturally, since without one, the other cannot exist. Your goal is to work for profit and not set specific monetary goals.

This commandment has simply been proven over time, because if you set a goal to earn, say, $300 today for your needs, then in the best case you will break even, and in the worst case you will suffer losses.

2 Discipline

Being a trader means being completely independent from your employer. If you're a trader, no one will force you to wake up at 7 a.m. to check your positions, and no one will tell you what to do. Being a trader requires discipline, because everything that happens to you and your account depends entirely on you.

Remember, discipline is a key factor, without which no trader has ever achieved success. You must strictly adhere to the rules you've set for yourself, because no one will force you to follow strict rules except yourself.

3 Know yourself

Everyone, regardless of their profession, has strengths and weaknesses. This primarily concerns personality, reactions to unexpected situations, and simple habits. Lewis Borsellino advises identifying your strengths and weaknesses and understanding how these weaknesses and strengths impact your trading.

Unlike most psychologists, he suggests improving our strengths, since working on our weaknesses takes a lot of effort, and the results are usually disappointing.

It's always easier to learn to do something better if you already know how to do it than to retrain yourself to do it differently. Of course, Lewis isn't advocating for not working on your weaknesses, but before tackling the hard stuff, try to perfect what comes naturally to you.

4 Get rid of your ego

Ego always accompanies a successful trader, and the more successful a person becomes, the higher their ego. The fact is, in the market, your ego is simply destructive, because the market doesn't care what you say or think.

A profitable series of trades boosts a trader's ego so much that they begin to forget about any discipline or risk management and become overconfident, because "I said" the price would go down. In fact, no one listens to you or takes your opinion into account, because the market has a life of its own, and if you're overconfident, it will quickly crush you.

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

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

Despite religion's teachings to pray and hope, the stock market isn't a place where benefactors compete. Remember, you're making money while someone else is losing money, so don't rely on faith and hope that someone will hear your prayers.

Your task is to always strictly follow the rules of your trading strategy, especially when it comes to risk management. Hoping for the market to reverse and moving your stop loss isn't just a bad habit; it's a proven fact that will ruin your account in the long run.

6 Let profits run and cut losses quickly

This rule will be useful not only for beginners but also for experienced traders. The fear of losing what we've already earned forces us to exit trades with small profits, while stop orders always have the opposite effect. Try to cut your losses and let your profitable positions grow.

For example, limit yourself in time or points, use different trailing stops, 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 don't take the 2nd and 4th commandments seriously. The fact is, many traders like to look for entry signals where none exist. Remember, the Forex market is not a game.

Separate establishments have been created for gambling, but for a successful trader, the ability to weather market uncertainty and strictly follow strategy signals is not a whim, but a necessary measure.

8 Love your losing and winning trades equally

This commandment is quite simple. We look at profitable positions with pride and analyze losses with humiliated dignity. It's necessary to approach analysis soberly and clearly understand that mistakes are the source of learning!

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

This commandment will help you avoid the mentality of a gambler who is ready to risk everything just to recoup losses. Taking a break will allow you to cool your ardor and continue trading with a cool head.

10 Rules cannot be broken

If you find it difficult to follow all these rules, the market will likely punish you. All of the above commandments will help you master your emotions and remain impartial when your money is on the line.  

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