The non-negotiable rules and psychology

The non-negotiable rules

• A loss is an information cost, not a failure. The stop is part of the plan, executed without hesitation.
• No averaging down on a losing trade: if the wall gave way, the thesis is wrong, period.
• Avoid macro releases: the spread explodes, liquidity disappears, the heatmap lies. Get out before, or size down heavily.
• Widening spread = fragile liquidity: reduce size or do not enter, slippage eats your edge.
• Lock it in: move the stop to entry (break-even) as soon as price validates the thesis and a first target is reached. Not before, or the wick takes you out.
• On a prop firm account: the firm's rules come before yours. An eliminated account cannot be rebuilt.