If there was only one golden rule for a trader, it would be this: I must have the humility to admit when I am wrong and take losses quickly before the losses are big!
This was not easy for me to adopt. In fact it took me years to consistently take small losses early. The reason was probably because I was wrong most of the time. Can you relate?
This may seem counter-intuitive but see, if you trade small and take losses quickly, it provides several advantages.
First, your account will not see a significant draw down.
Second, each loss is a learning opportunity to improve. You get better after each loss as long as you understand what you did wrong.
Third, large losses have a physiological affect on your trading that will prevent you from recovering quickly. So build the habit of taking small losses.
And finally, after you apply rules to your trading that prevent you from making the same mistakes, you will start to see positive returns on a consistent basis.
I still take losses almost every day and I learn something each time. The difference now is that I seldom hesitate and move on to the next trade very quickly. I look at those losses as part of the cost of trading profitably.
Make this rule a habit, and I can assure you your account grow! You can do this!!!
Hope this helps!