Trading is not about luck — it’s about discipline. Over the years, I’ve learned that the difference between traders who succeed consistently and those who fail isn’t their fancy indicators or secret setups. It’s their rules. The strict, non-negotiable rules they follow before entering any trade.
I’ve developed a set of rules that I never break. If a setup doesn’t meet these criteria, I don’t trade — no excuses, no exceptions. These rules have saved me from big losses, stress, and countless impulsive decisions.
Here’s my detailed guide to how I decide whether a trade is worth taking.
1. The Trend Must Align
The first rule is simple but crucial: only trade with the trend.
For longs (buy trades), the market should be trending upwards.For shorts (sell trades), the market should be trending downwards.
I usually check trend alignment using a combination of moving averages, trendlines, and price action. For example: if BTC is trading above its 50 EMA and making higher highs and higher lows, I consider long trades. Conversely, if the price is below the 50 EMA and forming lower lows and lower highs, I look for short opportunities.
Why this matters: entering a trade against the trend is like swimming upstream. You can make it work, but it’s higher risk and requires much more skill. By aligning with the trend, I increase my probability of success and reduce emotional stress during trades.
Example: Last week, I saw an EMA crossover signaling a long on ETH. The trend was clearly upward, so I took the trade. It moved in my favor and hit my profit target. If the trend had been sideways, I would have ignored the signal entirely.
2. Confirmation Comes First
I don’t take trades based on a single signal. There must be confirmation from multiple factors:
Indicators: EMA crossovers, RSI levels, MACD signalsPrice Action: Support and resistance levels, candle patterns like engulfing or pin barsVolume: Breakouts without volume are often fake
Waiting for confirmation ensures I’m not entering on a random spike or market noise. I’ve learned the hard way that ignoring confirmation leads to unnecessary losses.
Example: One day, BTC formed a bullish engulfing candle at a key support level. EMA suggested a long, but volume was extremely low. I skipped the trade — and later, price reversed, validating my decision.
3. Risk Must Be Defined
Every trade must have a clear stop loss and take profit before I enter.
Stop Loss: Defines my maximum loss per trade. Usually 0.5–1% of my account per trade.Take Profit: Ensures I don’t let winners slip away due to greed or indecision.
If I can’t calculate a reasonable risk/reward ratio (ideally 1:2 or higher), I don’t trade. Risk management comes first; entry timing comes second.
Example: I entered a trade on BTC expecting a 1% move. My stop loss was set at 0.5%, and my take profit at 1%. The trade hit my take profit in under 2 hours, and I walked away knowing my potential loss was capped if it went the other way.
4. Market Conditions Must Be Favorable
Even a perfect setup can fail in the wrong market environment. Before entering, I check:
Volatility: Too low, and breakout trades won’t move far enough; too high, and price may spike and reverse.News Events: Major announcements or listings can create unpredictable spikes.Liquidity: Avoid coins or pairs with low volume; price swings are exaggerated and unreliable.
I’ve learned that skipping trades in poor conditions is better than risking capital on high-probability chaos.
Example: During a sudden market correction caused by regulatory news, I avoided all trades for 24 hours. Watching from the sidelines, I avoided multiple stop-loss hits across BTC, ETH, and altcoins.
5. My Mental State Must Be Clear
I never trade when I am:
Emotionally stressedFatigued or distractedOverconfident after a winning streak
Trading while tired or emotional is a recipe for mistakes. Even a perfect setup can be ruined by poor execution. If I feel off, I walk away. Period.
Example: One afternoon, after a long meeting and multiple personal distractions, I noticed a trade setup. My mind wasn’t clear, so I skipped it. Hours later, the trade hit my take profit — but I wasn’t upset. Preserving my focus matters more than chasing every trade.
6. The Pattern Must Match My Strategy
I stick only to patterns and strategies I’ve tested.
I don’t chase setups I don’t understand.I don’t blindly follow signals from social media.I only trade setups that fit my system and risk tolerance.
This prevents me from gambling or making emotional decisions. The pattern itself isn’t magical — it’s the disciplined execution that produces results.
Example: I once received a Telegram alert to “buy a breakout” on a low-volume altcoin. It wasn’t in my system, so I ignored it. Within hours, it spiked and crashed, proving that discipline saved me from a major loss.
7. Entry Timing Must Be Precise
Even if all other conditions are met, timing matters. I never enter:
Before a confirming candle closesIn the middle of extreme volatility spikesToo early or too late, missing optimal risk/reward
Precise timing reduces losses and increases the probability of hitting my take profit.
Example: BTC formed a bullish breakout, but I waited for the 5-minute candle to close above resistance. Price briefly spiked below and would have triggered my stop if I entered early. Waiting ensured a successful trade.
8. I Never Chase Trades
FOMO is one of the biggest killers in trading. I don’t enter trades just because price has already moved significantly.
If I miss a setup, I wait for the next one.Chasing trades increases the risk of entering at a poor price and taking unnecessary losses.
Patience is part of discipline. Waiting for the right setup is always better than forcing a trade.
Example: BTC jumped 2% in 30 minutes. My rules didn’t signal an entry, so I stayed out. Two hours later, price retraced sharply — avoiding a potential stop-loss hit.
9. Risk per Trade is Always Small
I never risk more than 1–2% of my account on any single trade.
Position sizing is calculated before entry and never ignored.Even a string of losses won’t wipe out my account if I follow this rule.
This principle is crucial for long-term trading success. Protecting capital is more important than chasing large profits.
Example: I once entered a trade risking only 1% of my account, but it hit my stop loss. The loss was minor and didn’t affect my confidence or ability to trade the next day.
10. I Review Before Entry
Before hitting “buy” or “sell,” I always do a quick final review:
Check trend alignment againConfirm stop loss and take profit levelsRecheck all rules and filters
If anything feels off, I skip the trade. That extra few seconds of review often prevents costly mistakes.
Example: A BTC setup triggered almost all conditions, but the candle hadn’t closed yet. Upon review, I noticed the volume was weak. I skipped the trade — and price reversed shortly after, avoiding a loss.
Why Following Rules Matters
Without strict rules, trading becomes guesswork. By sticking to non-negotiable entry rules:
You minimize impulsive decisionsProtect your capitalIncrease the probability of consistent profitsTrain yourself to be disciplined and patient
These rules act like guardrails, keeping emotional decisions from wrecking your account.
Final Thoughts
Trading is a marathon, not a sprint. You can’t rely on luck, tips, or gut feelings. Having clear, non-negotiable rules for entering every trade is one of the most powerful things a trader can do.
For me, these rules have:
Saved me from huge lossesMade my trading more consistentImproved my confidence in every decision I make
If you’re serious about trading, take the time to create your own set of entry rules, test them, and enforce them without exceptions. Discipline beats luck every single time.
My Rules for Entering Any Trade (No Exceptions) was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.