50 Timeless Trading Rules of Wall Street

50 Timeless Trading Rules of Wall Street. Collected by Linda Bradford Raschke – featured in The New Market Wizards by Jack D. Schwager

Wall Street is not just about numbers, it’s about discipline, psychology, risk management, and survival. Traders come and go, but those who last often live by certain timeless principles. Here are 50 classic trading rules—distilled wisdom that has guided generations of traders. Master them, and you’ll trade with the mindset of Wall Street’s finest.

A. Rules of Planning & Discipline

1. Make a trading plan. Trade the plan.
2. Keep a detailed record of every trade.
3. Stick to your rules with iron discipline.
4. Place your stop-loss the moment you enter—and never cancel it.
5. Aim for steady growth, not fireworks that end in collapse.
6. Remember: being flat (no position) is also a position.

B. Rules of Psychology & Emotion

1. Stay positive—even through losses.
2. Don’t carry the market home with you.
3. Losses often teach more than profits—learn from them.
4. The hardest part of trading is self-control, not prediction.
5. Accept failure as part of the journey to success.
6. Don’t let ego and greed cloud your judgment.
7. One bad overnight loss can be forgotten; refusing to admit mistakes can destroy you.

C. Rules of Risk Management

1. Always cut losses—use stops!
2. Never add to a losing position.
3. Don’t try to catch exact tops or bottoms.
4. Don’t let a big winner turn into a loser (exit if you give back 20% from peak).
5. Take profits in portions, never risk more than half again.
6. Remember: a bear market can erase in 1 month what took 3 months of bull gains to build.

D. Rules of Skill & Knowledge

1. Smart traders buy on bad news, sell on good news.
2. Don’t fear buying high and selling low if that’s the trend.
3. Spend time studying markets—don’t just follow the crowd.
4. Market reaction to news matters more than the news itself.
5. If the market doesn’t do what you expect—get out.
6. Know the position size you can handle emotionally.

E. Rules of Mindset & Life Attitude

1. Trading is like fencing: some survive, many fall.
2. Words are silver, silence is golden—pros don’t brag.
3. Dream big, think wide—you become what you dwell on daily.
4. When one door closes, another opens.
5. The market reflects all forces—the market is truth.
6. Believe in yourself if you want to trade for a living.
7. When the ship starts sinking, don’t pray—jump!
8. Lose your opinion, but never lose your money.
9. Etch your personal trading rules into your bones.

📖 Source: tischendorf.com

🚀 Final Thoughts

Trading is a battlefield of the mind. These 50 rules aren’t just “tips”—they are survival codes passed down from traders who thrived where many failed.

👉 Whether you’re trading stocks, forex, or crypto, adopt these principles, and you’ll be a step closer to thinking—and surviving—like Wall Street’s elite.

Don’t just trade. Trade with wisdom.