rules
Trade Like a Professional,
Not Like a Gambler
A complete rulebook: pre-market routine, proven setups, risk management, and market-specific playbooks for Binary, Nifty, Forex, and Stocks. Follow the checklist every single day — no shortcuts, no exceptions.
Do this in order, every single trading day, before your first trade.
- Wake up early enough to be at your desk 20–30 minutes before your market/session opens — never trade groggy or rushed.
- Open yesterday's chart first. Study the last hour of trading in detail — where price closed, whether it closed near the high/low, and the shape of the last few candles.
- Mark yesterday's high, low, close, and opening price as horizontal reference lines on today's chart.
- Calculate and mark the day's pivot point, R1/R2 resistance and S1/S2 support levels.
- Check the economic calendar (Forex Factory / Investing.com) for high-impact news — RBI policy, Fed rate decisions, CPI, NFP, GDP. Block out 15–30 minutes around each.
- Check overnight gap indicators: Gift Nifty/SGX Nifty for Indian markets, DXY (Dollar Index) for forex bias, Asian session behavior for JPY pairs.
- Scan for any major overnight news on your watchlist symbols — earnings, central bank statements, geopolitical events.
- Write down today's maximum loss limit (in % or fixed amount) and maximum number of trades before you place a single order.
- Identify which of your proven setups is realistically likely to appear today, based on the trend and volatility — don't force a setup that doesn't fit the conditions.
- Only after all of the above: open your execution platform and wait patiently for your setup to form. Do not enter a trade "just to get started."
The rules every consistently profitable trader follows without exception.
📏 Position sizing
Risk only 1–2% of total capital per trade. Never increase size to "win back" a loss.
🎯 One setup at a time
Master a single high-probability setup before adding a second one. Depth beats breadth.
🛑 Hard stop-loss
Every trade has a stop-loss placed before entry — never mentally, always as an order or fixed expiry.
📈 Trade with the trend
Higher timeframe (Daily/4H) sets the bias. Lower timeframe (5M/15M) times the entry.
📓 Journal everything
Screenshot + setup name + reason for entry + result, logged for every single trade, win or lose.
🔁 No revenge trading
Two losses in a row = stop trading for the day. Full stop.
🚫 No martingale
Never double your stake after a loss to "catch up." One bad streak wipes the account.
⏰ Fixed trading window
Trade only during your chosen session hours. Markets outside your edge are not your business.
🧮 Reward:Risk ≥ 1.5
Only take trades where the potential reward is at least 1.5× the risk you're taking.
📰 News blackout
No new entries 15–30 minutes before/after major scheduled news releases.
🧘 Emotional check
Bored, angry, anxious, or overconfident? Close the platform. Trade only from a neutral state.
📊 Weekly review
Every weekend, review your journal: win rate, average R multiple, and which setup performed best.
🧯 Pre-set daily stop
Decide your max daily loss in rupees/dollars before the session, not after a bad run has already started.
🗂 Watchlist limit
Track no more than 4–6 symbols at a time — a huge watchlist causes missed setups and rushed entries.
🔬 Backtest before live
Any new setup gets 50+ backtested trades and 2 weeks of demo trading before real capital touches it.
🚷 No overleveraging
Higher leverage doesn't mean higher skill — keep leverage modest even when a setup looks "obvious."
📵 Single-tab focus
Trade from one clean chart layout — avoid juggling six tabs, group chats, and signal channels simultaneously.
🧾 Broker/platform check
Confirm your broker or platform is properly licensed and withdrawals actually process before depositing more.
- My setup's exact entry condition has been met — not "close enough."
- Higher timeframe trend direction is known and I'm not fighting it.
- Stop-loss level is decided and placed before I click buy/sell.
- Target/exit level is decided, giving reward:risk of at least 1.5:1.
- No major news event is due in the next 30 minutes.
- Position size respects my 1–2% per-trade risk rule.
- I am not trading to recover a previous loss.
- I have not exceeded today's maximum trade count.
- I am calm, rested, and not distracted.
- Log every trade taken today — entry, exit, result, screenshot, and the emotional state you traded from.
- Score yourself on rule-following, not just profit/loss — a losing trade taken correctly is a good trade.
- Note today's last-hour price action as tomorrow's opening reference.
- Identify one thing to improve tomorrow — one lesson, not ten.
- Close all charts and platforms. No "just one more trade" after the session ends.
Pick one, backtest it on your market for at least 100 trades on demo, then trade it live. Don't skip the backtest.
Trendline Break & Retest
Setup 01Price breaks a well-touched trendline (3+ touches) with a strong candle, then pulls back to retest the broken line as new support/resistance.
A rejection candle (pin bar / engulfing) forms exactly at the retested trendline.
Price closes back through the trendline beyond the retest candle's wick.
Target the most recent swing high/low, or trail behind each new higher-low / lower-high.
Support / Resistance Bounce
Setup 02Price returns to a horizontal level tested 2+ times previously without breaking.
Rejection wick or reversal candle pattern at the level, ideally with lower volume on approach.
A clean close beyond the level on strong volume.
Opposite side of the range, or the nearest prior swing point.
Engulfing Candle Reversal
Setup 03A bullish/bearish engulfing candle fully swallows the prior candle's body at a key support/resistance or after an extended move.
Next candle continues in the engulfing candle's direction.
Price closes back beyond the midpoint of the engulfing candle.
Prior swing high/low or a fixed 1.5–2R target.
Moving Average Crossover
Setup 04Fast EMA (e.g. 9 or 20) crosses above/below a slower EMA (e.g. 50) while price sits on the same side of both.
Rising volume on the crossover candle; price holds above/below the fast EMA on the following candle.
Price closes back through the fast EMA within 1–2 candles.
Trail behind the fast EMA until it crosses back.
Breakout & Retest
Setup 05Price breaks a well-defined consolidation range on strong momentum, then returns to retest the breakout level.
Retest holds with a rejection candle instead of re-entering the old range.
Price closes back inside the old range.
Measured move = height of the consolidation range projected from the breakout point.
RSI Divergence
Setup 06Price makes a new high/low while RSI fails to make a corresponding new high/low (divergence).
A reversal candle forms and RSI crosses back through the 50 line.
Price makes a further extreme beyond the divergence high/low.
Nearest support/resistance or a fixed 2R target.
Pin Bar / Price-Action Rejection
Setup 07A candle with a long wick (2–3× the body) rejecting a key level, body closing away from the extreme.
Next candle moves in the direction the pin bar is pointing.
Price closes beyond the tip of the pin bar's wick.
1.5–2R target or nearest opposing level.
MACD Crossover
Setup 08MACD line crosses the signal line in the direction of the higher-timeframe trend, ideally below/above the zero line.
Histogram bars grow in the crossover's direction for 2+ bars.
MACD crosses back within a few candles.
Opposing crossover, or fixed 1.5–2R target.
Bollinger Band Squeeze Breakout
Setup 09Bands contract to their tightest width in weeks (squeeze), then price closes decisively outside a band.
Volume/momentum expands on the breakout candle.
Price closes back inside the bands within 1–2 candles.
Trail using the opposite band or the 20-period basis line.
Opening Range Breakout (ORB)
Setup 10Mark the high/low of the first 15–30 minutes of the session; enter on a breakout beyond that range.
Breakout candle closes with strong body and above-average volume.
Price re-enters the opening range.
Measured move of the opening range height, or trail with a rising/falling structure.
VWAP Bounce
Setup 11Price pulls back to the session VWAP line during a trending day and shows a rejection.
Candle closes back on the trend side of VWAP with rising volume.
Price closes firmly through VWAP against the trend.
Prior session high/low or a fixed intraday target.
News-Fade Reversal
Setup 12After the initial volatile spike on a news release fully retraces, enter in the opposite direction once a range forms.
Spread has normalized and price rejects the spike extreme.
Price makes a new extreme beyond the spike.
Pre-news price level, small target — this setup carries added slippage/spread risk.
Head & Shoulders Reversal
Setup 13Price forms three peaks/troughs (left shoulder, head, right shoulder) and breaks the neckline connecting the two reaction points.
Neckline break closes with above-average volume, ideally with a retest.
Price closes back above/below the neckline after the breakout.
Measured move = head-to-neckline distance, projected from the breakout point.
Fibonacci Retracement Bounce
Setup 14Price retraces to the 50%–61.8% Fibonacci zone of the last impulsive move, in the direction of the higher-timeframe trend.
A reversal candle forms inside the zone, ideally aligning with a moving average or prior support/resistance.
Price closes beyond the 78.6% retracement level.
Prior swing high/low, or the 127%/161.8% Fibonacci extension.
Inside Bar Breakout
Setup 15An "inside bar" (a candle fully contained within the prior candle's range) forms after a strong trend move, signaling a pause.
Price breaks and closes beyond the inside bar's high/low in the direction of the prior trend.
Price breaks the inside bar in the opposite direction instead.
Height of the inside bar's "mother candle" projected from the breakout point.
Doji Reversal
Setup 16A doji (open ≈ close, wicks on both sides) forms after an extended trend, showing indecision.
Next candle closes strongly in the opposite direction of the prior trend.
The following candle continues the original trend instead.
Nearest swing point or a fixed 1.5R target.
Morning Star / Evening Star
Setup 17A large trend candle, a small-bodied middle candle (star), then a strong reversal candle closing past the midpoint of the first candle.
Volume rises on the third candle; the star candle gaps away from the first candle.
Price fails to close beyond the midpoint of the first candle.
Prior swing high/low or measured 2R target.
Three White Soldiers / Three Black Crows
Setup 18Three consecutive candles each closing higher/lower with small wicks and similar-sized bodies.
Each candle opens within the prior candle's body and closes near its own extreme.
A fourth candle reverses sharply against the pattern.
Trail behind each new candle's low/high.
Harami Reversal
Setup 19A large trend candle followed by a small candle fully contained within its body.
The next candle breaks beyond the small candle in the new direction.
Price continues the original trend beyond the large candle's extreme.
Fixed 1.5-2R target or nearest opposing level.
Tweezer Top / Bottom
Setup 20Two consecutive candles with matching highs (top) or matching lows (bottom) at a key level.
The second candle closes opposite to the first, confirming rejection.
Price closes beyond the matched high/low.
Nearest support/resistance or 1.5R target.
Symmetrical Triangle Breakout
Setup 21Price compresses between converging trendlines (lower highs and higher lows) then breaks out.
Breakout candle closes outside the triangle with rising volume.
Price re-enters the triangle after breaking out.
Measured move = triangle's widest height projected from the breakout point.
Rising / Falling Wedge Breakout
Setup 22Price grinds within a narrowing wedge sloping against the eventual breakout direction.
A decisive close outside the wedge with expanding volume.
Price closes back inside the wedge.
Measured move = wedge's starting height projected from the breakout point.
Flag / Pennant Continuation
Setup 23After a strong impulsive move (the pole), price consolidates in a small rectangle or triangle (the flag).
Breakout resumes in the original trend direction with a volume pickup.
Price breaks the flag against the prior trend.
Measured move = the pole's height projected from the breakout point.
Double Top / Double Bottom
Setup 24Price tests the same high/low twice with a moderate pullback between the two tests.
Neckline (the pullback low/high between the two tops/bottoms) breaks with volume.
Price makes a third push beyond both tops/bottoms.
Measured move = top/bottom-to-neckline distance projected from the breakout.
Cup and Handle
Setup 25Price forms a rounded 'cup' recovery, then a small shallow 'handle' pullback near the cup's rim.
Breakout above the handle's high on rising volume.
The handle pullback becomes too deep (beyond 50% of the cup's depth).
Measured move = cup depth projected from the breakout point.
Rounding Bottom (Saucer)
Setup 26Price gradually curves up from a prolonged decline, forming a smooth saucer shape.
A decisive close above the saucer's starting resistance level with rising volume.
Price breaks back below the saucer's midpoint.
Prior major resistance zone or trailing exit.
Gap Fill Reversal
Setup 27Price gaps up/down at the open, then reverses to fill (partially or fully) the gap.
A rejection candle at the gap extreme, with price moving back toward the previous close.
Price extends further away from the previous close instead of filling the gap.
Previous day's close, or 50% gap-fill level.
Gap-and-Go Continuation
Setup 28Price gaps up/down on news or momentum and holds above/below the opening range without filling the gap.
First pullback after the gap holds and price resumes in the gap's direction.
Price fills the gap completely within the first 30 minutes.
Trail behind rising/falling short-term structure.
Ichimoku Cloud Breakout
Setup 29Price breaks decisively above/below the Ichimoku cloud (Kumo) with the cloud itself turning the same color.
Tenkan-sen crosses Kijun-sen in the same direction as the breakout.
Price closes back inside the cloud.
Trail behind the Kijun-sen line.
Stochastic Oscillator Crossover
Setup 30%K line crosses %D line while both are in the oversold (below 20) or overbought (above 80) zone.
Price action confirms with a reversal candle at the same time as the crossover.
Oscillator crosses back before price confirms.
Opposite oscillator extreme or fixed 1.5R target.
Parabolic SAR Trend Flip
Setup 31SAR dots flip from above price to below price (or vice versa), signaling a potential trend change.
Price closes clearly on the new side of the dots for at least one full candle.
SAR flips back within 1-2 candles (whipsaw).
Trail the position using each new SAR dot as a moving stop.
ADX Trend Strength Filter
Setup 32ADX rises above 25, confirming a strong trend is in place (used to filter which setups to trust).
+DI/-DI lines are clearly separated in the trend's direction.
ADX stays below 20, signaling a rangebound market — trend setups are avoided here.
Not a standalone entry — use alongside a trend-following setup above for actual entries/exits.
Keltner Channel Breakout
Setup 33Price pushes and closes outside the Keltner Channel's upper/lower band after a quiet period.
Candle closes beyond the band with above-average range.
Price closes back inside the channel within 1-2 candles.
Trail using the channel's midline (20 EMA).
Donchian Channel Breakout
Setup 34Price breaks above/below the highest high or lowest low of the last N periods (classic turtle-style breakout).
Breakout candle closes beyond the channel edge with volume expansion.
Price closes back inside the channel.
Trail using the opposite channel band.
200 EMA Bounce (Institutional Level)
Setup 35Price pulls back to the 200-period EMA during an established trend and shows a rejection.
A reversal candle closes back on the trend side of the 200 EMA.
Price closes firmly through the 200 EMA against the trend.
Prior swing high/low or trail behind the EMA.
Anchored VWAP Reclaim
Setup 36Price dips below an anchored VWAP (from a major swing/earnings/news point) then reclaims it.
A strong close back above the anchored VWAP with rising volume.
Price fails to hold above the anchored VWAP for more than 1-2 candles.
Prior resistance zone or a fixed 2R target.
Order Block Retest (Smart Money Concept)
Setup 37Price returns to the last opposite-colored candle before a strong impulsive move (the 'order block').
A rejection candle forms exactly at the order block zone.
Price closes fully through the order block without reacting.
Prior swing high/low or the next liquidity zone.
Fair Value Gap Fill
Setup 38An imbalanced price gap between candle wicks (a 'fair value gap') gets partially or fully filled before continuation.
Price reacts with a rejection candle inside the gap zone.
Price fully fills the gap and continues through it without reacting.
Prior swing point or a fixed 1.5R target.
Liquidity Sweep Reversal
Setup 39Price briefly spikes beyond an obvious high/low (sweeping stop orders) then sharply reverses.
A strong rejection candle closes back inside the prior range immediately after the sweep.
Price continues beyond the sweep without reversing.
Opposite side of the range or a fixed 2R target.
Heikin-Ashi Trend Flip
Setup 40Heikin-Ashi candles flip from consistent red bodies with lower wicks to consistent green bodies with upper wicks (or vice versa).
2-3 consecutive Heikin-Ashi candles confirm the new color with minimal opposite wicks.
Candles flip back within 1-2 bars (choppy conditions).
Trail as long as Heikin-Ashi candles keep printing in the same direction.
Outside Bar Reversal
Setup 41A candle's high and low fully engulf the prior candle's entire range, closing opposite to the prior trend.
Volume expands on the outside bar itself.
Price fails to follow through in the new direction on the next candle.
Prior swing point or fixed 1.5-2R target.
First Pullback Trend Continuation
Setup 42After a fresh breakout/trend start, price pulls back once to a moving average or broken level, then resumes.
First pullback holds and a continuation candle closes back in the trend's direction.
The pullback becomes a full reversal instead of a shallow retracement.
Trail behind each new higher-low/lower-high.
Williams %R Extreme Reversal
Setup 43Williams %R reaches an extreme reading (below -80 or above -20) signaling an overextended move.
Price action confirms with a reversal candle as %R turns back from the extreme.
%R stays pinned at the extreme as price keeps trending (strong trend, not a reversal).
Opposite extreme or a fixed 1.5R target.
CCI Extreme Reversal
Setup 44Commodity Channel Index pushes beyond +100/-100 then curls back toward zero.
Price closes with a reversal candle as CCI crosses back through the extreme threshold.
CCI keeps extending and price continues trending strongly.
Zero-line cross or fixed 1.5-2R target.
London Session Breakout
Setup 45Mark the Asian session's range; enter on the breakout once London session volume arrives.
Breakout candle closes beyond the Asian range with a clear volume/momentum pickup.
Price re-enters the Asian range within the first 1-2 London candles.
Measured move = Asian range height projected from the breakout point.
Asian Range Breakout
Setup 46Price consolidates through the quiet Asian session, then breaks out as London opens.
Breakout candle closes with expanding range and volume as the new session begins.
Price closes back inside the Asian range.
Measured move = Asian range height, or trail behind emerging structure.
New York Reversal Hour
Setup 47The early London trend often reverses in the first hour of the New York session amid fresh liquidity.
A clear reversal candle forms as NY volume enters, against the London-session trend.
London's trend continues uninterrupted into the NY session.
Prior session's opening level or a fixed 1.5-2R target.
Options Max Pain Pin
Setup 48On weekly/monthly expiry day, price tends to gravitate and pin near the strike with maximum option writer pain.
Price oscillates in a tightening range around the max-pain strike into the close.
A strong directional news event overrides the pinning effect.
Range-bound targets only — avoid large directional bets into this pin.
Earnings Gap Fade
Setup 49A stock gaps sharply on earnings, then the initial emotional spike partially reverses once the gap stabilizes.
Price rejects the gap extreme and a range forms before any fade entry.
The stock continues trending in the gap's direction without stabilizing.
Partial gap-fill level — this setup carries added volatility/slippage risk.
End-of-Day Momentum Continuation
Setup 50A clear intraday trend accelerates in the last 45-60 minutes as positions get closed or added into the close.
Volume rises into the close while price keeps making new session highs/lows.
Price reverses sharply in the final 15 minutes (common on expiry or news days).
Session close, or trail behind the accelerating short-term structure.
🧪 Demo first, always
Minimum 30 days and 100+ trades on demo with a positive, consistent result before touching real money.
⏱ Match expiry to timeframe
A setup formed on a 5-minute candle uses a 5-minute expiry. Don't guess a random expiry length.
🕐 Trade high-liquidity hours
Major forex pairs during London/New York overlap behave far more predictably than illiquid hours.
🚫 Avoid OTC/weekend pairs
OTC synthetic pairs behave differently from live markets — only trade them if specifically backtested.
📉 One direction per setup
Don't take a "call" and a "put" on the same asset simultaneously to "hedge" — this just guarantees a loss on one side plus fees.
🚫 No martingale / no doubling
Doubling stake after a loss to recover it turns one bad streak into an account-ending event.
🧮 Fixed stake %
Risk the same 1–2% of account on every trade regardless of recent wins or losses.
📊 Confirm on a real chart
Cross-check the in-platform chart against TradingView or another independent source before entering.
✅ Confluence required
Only take a signal when at least 2 factors agree (e.g. trendline + candlestick pattern + support level).
🛑 Daily stop rules
Hard stop after 3 losing trades OR -5% of capital for the day — whichever comes first.
📵 No signal-seller shortcuts
Be skeptical of paid "signal groups" promising fixed win rates — verify any claim yourself on demo first.
💸 Withdraw profits regularly
Periodically withdraw a portion of profits rather than letting the whole balance ride indefinitely.
🎰 Payout % matters
Check the payout percentage before entering — a 70% payout needs a meaningfully higher win rate than a 90% one to break even.
🖱 One trade at a time
Never open multiple simultaneous trades on the same asset "to increase chances" — it multiplies risk, not edge.
📶 Check connection/slippage
Trade only on a stable connection — a lag near expiry can flip a winning trade into a loss.
🧊 Cool-down after big wins too
A big win can trigger overconfidence just like a loss triggers revenge trading — pause and reassess either way.
- Account verified, deposit limited to an amount I can fully afford to lose.
- Today's max loss and max trade count written down before starting.
- Watchlist assets chosen based on today's liquidity/session, not random selection.
- Expiry time matches the candle timeframe used for the setup.
- At least 2 confirming factors present before entry.
- No entry within 15–30 minutes of scheduled high-impact news.
🕘 Session hours
9:15 AM – 3:30 PM IST. Highest volatility typically 9:15–10:30 AM and 2:30–3:30 PM.
🚦 Skip the open
Avoid entries in the first 5 minutes (9:15–9:20) — opening-order volatility distorts price.
🌏 Check Gift Nifty pre-open
Gift Nifty / SGX Nifty gives an early read on gap-up or gap-down direction before the bell.
📐 Mark levels early
Prior day high/low/close plus daily pivot, R1/R2, S1/S2 marked before the market opens.
📊 Watch option OI
Track open interest buildup in the option chain for extra confirmation on support/resistance zones.
🏦 Bank Nifty correlation
Bank Nifty often leads or amplifies Nifty moves — check both indices before trading either.
📅 Expiry-day caution
Weekly/monthly options expiry days bring unusual volatility and whipsaws — reduce size or sit out.
🌐 Global cues
Check US market close (Dow/Nasdaq/S&P) and Asian markets (Nikkei, Hang Seng) each morning for sentiment.
📈 India VIX check
Rising India VIX signals expanding volatility and wider stop-losses needed; falling VIX favors range setups.
💰 FII/DII data
Check daily FII/DII net buy-sell figures each morning — heavy institutional selling often precedes weak sessions.
🔄 Sector rotation
Watch which sectoral indices (IT, Bank, Auto, Pharma) are leading — Nifty strength often concentrates in 2–3 sectors at a time.
🎈 Round-number caution
Big round levels (e.g. 22,500, 23,000) tend to act as psychological support/resistance — expect extra chop there.
🕓 London session
~12:30–4:30 PM IST. Strong trends begin here, especially on EUR, GBP pairs.
🕗 NY overlap
~5:30–9:30 PM IST — London/New York overlap is the highest-volume window of the day.
🌙 Thin Asian session
Avoid unless trading JPY/AUD pairs specifically — lower volume, choppier price action elsewhere.
📰 Red-folder news
Check Forex Factory calendar every morning; block entries 15–30 min around red (high-impact) events.
💵 DXY correlation
Dollar Index (DXY) direction gives a quick bias check for all USD-paired trades.
🎯 Start with majors
EUR/USD, GBP/USD, USD/JPY — tighter spreads and more predictable technical behavior than exotics.
📉 Spread awareness
Check spread widening around news/session changes — it directly eats into small intraday targets.
🗓 Weekend gap risk
Avoid holding binary/short-expiry positions into the weekend close — Monday gaps can invalidate setups instantly.
🏦 Central bank calendar
Mark Fed, ECB, BoE, and RBI meeting dates in advance — these move entire currency pairs, not just one asset.
🔗 Correlation risk
Avoid stacking trades on correlated pairs (e.g. EUR/USD and GBP/USD long together) — it's one risk bet, not two.
💹 Swap/rollover awareness
Check overnight swap rates before holding positions past the daily rollover time, especially on high-interest-rate-differential pairs.
🌅 Pre-market scan
Check pre-market movers, overnight news, and any earnings released before/after the prior close.
🚦 Observe the open
Let the first 15 minutes establish the opening range before taking a directional trade.
📶 Relative volume
Prefer stocks trading above their average daily volume — thin stocks slip and whipsaw more.
📏 ATR-based sizing
Size positions using Average True Range so a volatile stock doesn't get the same lot size as a calm one.
📅 Earnings caution
Avoid new positions immediately before earnings releases unless specifically trading the earnings event.
🏭 Sector context
Check how the stock's sector/index is behaving — a stock rarely moves in isolation from its peers.
📰 Corporate actions
Watch for dividends, splits, bonus issues, and index-inclusion news that can distort normal price behavior.
🔍 Float & liquidity check
Know a stock's free float and average daily traded value before sizing a position — low-float names gap harder.
📉 Circuit limit awareness
Check upper/lower circuit bands on smaller-cap stocks — a locked circuit can trap a position with no exit.
🗞 Results season caution
Reduce size or sit out names reporting quarterly results within the next 1–2 sessions unless trading the event itself.
- Never risk more than 1–2% of total account equity on a single trade.
- Set a maximum daily loss (e.g. 5%) and a maximum weekly loss (e.g. 10%) — hit either, and stop.
- Never add to a losing position to average down.
- Keep a fixed reward:risk minimum of 1.5:1 before considering any entry.
- Diversify across uncorrelated setups/assets rather than concentrating all risk in one trade idea.
- Re-evaluate position size after any month with a drawdown greater than 10%.
- Use a risk-per-trade calculator (stop distance ÷ account risk %) instead of guessing lot/position size.
- Keep at least 3–6 months of living expenses outside any trading account — never trade with money earmarked for essentials.
- Accept that losses are a normal cost of doing business, not a personal failure.
- Judge yourself on process (did I follow my rules?) rather than the outcome of any single trade.
- Take a break after any emotionally charged trade — don't immediately re-enter to "fix" it.
- Avoid checking open positions obsessively; let the setup play out to its planned exit.
- Separate trading time from personal/emotional stress — never trade during a personal crisis.
- Celebrate rule-following, not just wins — a disciplined loss is a good trade.
- Keep a simple daily habit tracker: sleep, screen-time before trading, and rule-adherence score.
- Step away from the screen for 5–10 minutes between trades to reset focus and reduce impulsive re-entries.
Simple, plain-language definitions for every term used across this rulebook.
The smallest standard price move in a forex pair, usually the 4th decimal place (e.g. 0.0001).
The gap between the buy price and sell price of an asset — effectively the cost of entering a trade.
A pre-set price where a losing trade automatically closes to limit further loss.
A pre-set price where a winning trade automatically closes to lock in gains.
How much profit is targeted compared to how much is risked — 1.5:1 means risking ₹100 to make ₹150.
A calculated price level (from the prior day's high/low/close) used to gauge intraday support and resistance.
Volume-Weighted Average Price — the average price an asset traded at through the day, weighted by volume.
A measure of how much an asset typically moves per period — used to size positions and stops sensibly.
The total number of outstanding option/futures contracts — rising OI at a strike suggests strong positioning there.
The fixed time at which a binary options contract settles as a win or loss based on price direction.
A staking method that doubles the trade size after every loss — high risk of large, fast account losses.
The decline in account value from its highest point — a key measure of how much risk was actually taken.
When price and an indicator (like RSI) move in opposite directions, often warning of a possible reversal.
A jump in price between one session's close and the next session's open, with no trading in between.
The difference between the expected trade price and the price actually executed, often during fast moves.
The maximum daily price move allowed for a stock/index before trading is halted, up or down.