The 10 Commandments of Trading
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The 10 Commandments of Trading

January 18, 2020 • 
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The 10 Commandments of Trading
Mine Digital went up the mountain to talk to Jesse Livermore so you didn’t have to. Find our 10 Commandments of Trading here.

1. The Market is the Lord thy God

The market is a complex, high information, dynamic, qualitative animal that defies attempts to model and predict it. It is some otherworldly beast, attempts to conquer it are absorbed into it. Markets cannot always be beaten by definition and evolve and adapt as surely as they exists at all.

If you are trading in markets, make peace with submitting yourself before the market or you will eventually blow up.

2. Thou Shalt Have No Other Hobbies Before Me

Trading in markets is an involving past-time and requires proper dedication.

While you have positions on you are testing an idea – but it’s not always what you think, searching the tea-leaves – but not being paranoid, watching your downside – but not cutting too early, taking profit – but letting positions run and so on.

Perhaps we can break this one from time to time, but for the time you are not focused and in the right head-space; somebody else is!

3. Thou Shalt Not Worship any Graven Shitcoin

1000 Shitcoins and 999 broken promises.

Financial investment should test a hypothesis, whether that is a macro-thesis, a technological breakthrough, a pricing analysis or whatever else is out there. The alt-coin market is full of broken promises, scam ICO’s, dinky marketing teams and is rife with the type of promotional agreements that no sane, rational, viable working team who intend on being involved in the industry long-term would accept.

The bubble-days are (mostly) over, but the pumps and scams will keep going for some time. Do more research!

4. Remember the Sabbath Day, to Keep it Holy

Whether your sabbath is on a Friday, Saturday, Sunday or Tuesday make sure that you take time away from markets to reset.

Markets can be an all-encompassing, exhausting thing to be involved in and time must be scheduled and taken to be away from them.  This also stops us over-trading, and lets us commit properly when the markets heat up so that we don’t miss the action.

5. Honour thy Stops and Levels that thy Days may be Long upon the Market

Your stops and levels form part of the plan through which you intend on being profitable at the end of the day. At the most they should be keeping your capital safe, and at the least they should be testing your hypothesis on how the market is behaving. Your risk levels should watch over you – kind of like a parental governance.

6. Thou Shalt Not Trade Angry

Trading angry is a cardinal sin. Our previous planning goes out the window, trade leverage increases, we chase losses, we fight the market and we increase the prospects of going from bad to disaster.

It’s not like we’re talking about moneychangers in the temple, no need to be angry.

7. Thou Shalt Not Commit Adultery

The grass is always greener on the other side! Your market might have gone quiet, you feel like you took the best of it and it’s time to run or some of those other setups in other markets might be looking preeeettty good right about now.

But be careful switching lanes too quickly, you might come back to the thing you love and find out she took half!

8. Thou Shalt Not Shill

Shilling your coins and position is bad juju.

By all means share your information, talk about the markets and the trade, but by the time you are shilling you have already lost.

We’d say that talk is cheap but you might just talk yourself into all kinds of things, in the which case it’ll be very expensive.

9. Thou Shalt Not Chase Good Trade After Bad

As mere humans, we have a tendency to attempt to make-up for our mistakes as soon as possible. It’s often a superficial attempt at glossing over the mistake we made. As the philosopher Frank Sinatra sings in ‘That’s Life’, ‘You’re riding high in April, Shot down in May’.

Do not chase good trade after bad – ‘Cause this fine old world it keeps spinnin’ around.

10. Thou Shalt Not Covet thy Neighbours Sats

Everybody is on a separate trading journey. Worrying about what the next person is getting is not any of your business and can only interfere with the execution and development of your plan. If you still can’t help yourself – offer your capital over to the guy killing it.

Written By
Operations & Trading Manager
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