We can learn a lot about trading by studying a pilot's flight training and preparation, and planning.
A wise pilot once said: "There are old pilots and there are bold pilots, but there are no old bold pilots”.
The lesson here is that experience teaches us to keep our ego in check.
Just like trading.
They learn to respect the dangers of flying and function with a little bit of fear.
It has also been said that new pilots lack good judgment and that it's inversely proportional to their experience as a pilot for up to about a thousand hours in flight time.
Just like new traders.
In that regard, good pilots have a checklist and do not deviate from that plan.
Just like Good traders.
Finding good rules & a checklist to follow and apply is easy enough.
But sticking to it and learning discipline takes practice and a plan.
New traders often ignore the dangers of trading and the need to stick to a plan.
Just like New Pilots.

Let’s review a few trading rules that make good sense but are often overlooked.

1) Never average down on a losing position.
2) Never over-trade.
3) Always use stop-loss orders. Never cancel stop orders without replacing them.
4) Avoid taking small profits and letting losses run (#3 prevents this).
5) Reduce trading after a series of losses and take a break.
6) Be willing to trade from both sides of the market
7) Keep all your trading systems simple
8) There is nothing wrong with being wrong on the trade, what is wrong is staying wrong on the trade!

There are five ways a trade can go:

1) Sideways
2) Go up
3) Go up a lot
4) Go down
5) Go down a lot

One can prosper in this business and live to fight another day if one avoids #5.(or #3 if short)

The disciplined pilot knows a smart flight plan will help protect him.
A disciplined trader knows the same thing.



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