Most traders lose money for one simple reason…
By the way, it’s not for lack of effort.
It’s because they jump from one trade to the next, chasing spikes, ignoring red flags, and trying to hit home runs every day.
That just doesn’t work!
You know what does work? In spades? My Monday Setup.
If you haven’t heard about it yet, listen up…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
Right at 9:30 am Eastern, as the opening bell rings, we look for a very specific setup that often shows up like clockwork.
And it has delivered some incredible wins!
Take this past Monday…
BT Brands (NASDAQ: BTBF) gained an incredible 175%* in under half an hour after announcing its exploration of a new merger opportunity.
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
Besides using the Monday Setup and other great patterns, what if your real edge can come from doing less?
Yes, I’m serious. Sometimes, less is actually more, especially in the trading game.
I have a trick up my sleeve that can help you stay in control, cut the emotional noise, and build consistency, week after week.
It’s not flashy and it’s not complicated.
Table of Contents
A Mindset Shift That Could Save Your Account
Let’s run a quick thought experiment…
You’re a day trader who follows the rule I recommend often, especially for new traders… one quality trade per day.
So, you make one trade per day, five days a week. Pretty straightforward, right?
Here’s What That Week Could Look Like:
- Monday: You take a $100 loss. Now you’re down $100… You get over it and move on.
- Tuesday–Thursday: You stay disciplined, manage risk, and maybe take small gains or breakeven trades. Nothing dramatic, but a solid process.
- Friday: You catch a clean breakout, like Mill City Ventures (NASDAQ: MCVT) from two Fridays ago…
You bought 100 shares after the market open and rode it up to the high of the day, netting about $420.
MCVT Intraday 5-Minute Candles Chart
Now you’re up $320 on the week.
Not because you chased every spike, and not because you overtraded….
But because you managed risk, stayed patient, and waited for your moment.
That’s the Rule of Five
It’s not a technical strategy. It’s a psychological framework.
It’s about staying in the game long enough to be there when the best opportunity hits.
Here’s what it teaches:
- Losses happen.
- You don’t need to win every day.
- But when the setup is A+, you go for it.
Most traders blow up because they try to make every day a home run day. They can’t handle losing $100 without chasing something to make it back immediately.
That’s how accounts blow up.
Why the Rule Works
The Rule of Five assumes you’re trading with proper risk management.
Here’s how it’s done…
- Small losses are capped, maybe $100 max per trade. You set your stop losses accordingly.
- You aim for winners that are 2–3 times bigger than the losers, or more, when the breakout really runs.
- You don’t touch subpar setups. You’re only trading the best of the best.
This is where psychology kicks in…
- You’re controlling emotions.
- You’re not chasing.
- You’re not revenge trading.
- You’re waiting.
And when that clean breakout comes, you strike.
Keeping It Real
If you’re up $100 on the week, you’re not retiring, you’re not paying off all your debt, and you’re not taking a vacation to Bali.
But you know what you are doing?
You’re winning.
And not only literally in dollars…
As corny as it might sound, you’re winning because you’re building the habits that lead to consistency and building a plan that doesn’t rely on luck…
It relies on discipline.
That’s how you survive the trading battlefield in the long run.
That’s how you can come back to trade the next day, and the day after that, gradually building your account to a size where you can take bigger risks and go after bigger opportunities.
My Final Thoughts…
The Rule of Five isn’t just about numbers. It’s about knowing when to be aggressive and when to sit on your hands.
It’s about accepting a red day without going off the rails.
You don’t need to be green every single day.
But if you can trade five days a week, keep your losses tight, and let your best trade do the heavy lifting, you grow your account, stay in the game, and build your confidence.
One trade a day, five days a week. Manage your risk and wait for the good stuff.
That’s the Rule of Five.
Now don’t wait any longer…
Use it now.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
We’re knee deep in earnings season. Do you know how to play it?
Catch the big moves at the market open.
These stocks are hot. Put them on your watchlist ASAP.