# 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.\
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**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.\
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**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.\
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**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.\
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**4. Technicals are used only for entries and exits.** The direction of the market is determined by fundamentals. I never trade against the fundamentals.\
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**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.\
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**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.\
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**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.\
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**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.