> For the complete documentation index, see [llms.txt](https://blog.atraderlife.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blog.atraderlife.com/extras/rules-for-success.md). # Rules for success UTPs (Universal Trading Principles) are a set of trading rules you must not break. They cover entries, exits, strategies, and risk management. They form the backbone of your trading plan. Repeat these rules everyday, like a mantra, until you can recite them in your sleep. This will make you a successful trader.\ \ **1. Don't leave money on the table** - I move my SLs to breakeven and lock in profits as the trade goes in my direction. The first rule of trading is to protect my trading capital. Without my capital, I am out of the game and cannot be a trader. So I do everything possible to protect it.\ \ **2. I scale in and out of trades** - If my trade idea seems to work, I add to my position. If my trade doesn't work and approaches my SL, I am reducing my position. I am ALWAYS adding to working trades and NEVER to losing trades. This is how the most successful traders trade, and this is how I want to trade.\ \ **3. Final TPs** - My final TP is based on horizontal S/R levels, weekly or monthly highs and lows. I confirm that markets are mostly ranging, i.e. my final TPs are always based on the normal distribution (e.g. weekly or monthly ATR). My TPs need to be REALISTIC.\ \ **4. Technicals are used only for entries and exits.** The direction of the market is determined by fundamentals. I never trade against the fundamentals.\ \ **5. Position sizing** - My stop-losses are always based on sound technical levels. My position size depends on the size of the stop-loss and the percentage of my trading account I want to risk on any single trade. I never risk more than 2% on a trade, and cut the risk-per-trade to 1% after a series of three losing trades.\ \ **6. Trading is a probability game** - I acknowledge that successful trading is about probabilities. I don't know whether my next trade will be a winner, but I do know that I have a good chance to be in profit after the next 10 trades.\ \ **7. Trading is as simple as you make it** - Fundamentals support my trades, but everything can happen (including a change of fundamentals and sentiment). Risk management prevents higher losses. There are always new opportunities. My goal isn't to be right, but to follow my UTPs.\ \ **8. Weekly journal reviews** - I don't measure trading success by the profits I've made or the number of winning trades. My success is measured by how strictly I followed my UTPs. To review my trading, I am performing weekly journal reviews and try to identify any trading patterns that have a negative influence on my bottom line. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://blog.atraderlife.com/extras/rules-for-success.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.