Here are 15 golden trading rules that can get a new trader on the path to profitable trading or get an unprofitable trader back on track. Trading System 1. If you don't have a full trading system with an edge, stop trading until you develop one. 2. Never trade anything you don't understand completely. Don't trade stocks, futures, forex, crypto, or options until you understand the risk and how they work. 3. Trade in the direction of the trend in your trading time frame. Identify and go with the flow of least resistance. 4. Only look for low-risk/high-reward trades or high-probability setups. When you don’t have any signals, don’t trade. 5. Your trading strategy must have a positive expectancy model. Trading Psychology 6. Trade a position size that doesn't interfere with your ability to execute your trading plan. 7. Trade your plan using the signals on the chart by following price action and not your own opinions, bias, or predictions. 8. You must trade the methodology and time frame you are comfortable with and that fit your beliefs about the market and your personality. 9. Your trading system must match your available screen time and risk tolerance and give you a chance to achieve your return goals. 10. A trader must have confidence in their trading system and faith in themselves to execute it with discipline over the long term. Risk Management 11. Liquidity is the most important fundamental of any security or asset. Wide bid/ask spreads are expensive for entries and exits, and not being able to exit when you want can cause big losses. 12. Never add to a losing trade. Adding to a losing trade means you are already wrong, but now you are more wrong with a larger position size. Adding to losers makes you a counter-trend trader that will eventually end badly when you find yourself on the wrong side of a strong trend. 13. Never lose more than 1% to 2% of your total trading capital on any one trade. This means using position sizing aligned with stop-loss placement, so that when you are wrong, the loss is not large enough to damage you financially, mentally, or emotionally. 14. The size of your wins and losses ultimately determines your trading success, regardless of your winning percentage. No system is profitable when it incurs huge losses. 15. Your risk management rules will ultimately determine the success of your technical trading system.