Resistance is a price point on a chart where there are implied sellers. Recent tops, fibonacci pullback levels, pivot points, old support-turned-resistance, etc. No matter how bullish price looks and how convinced you are that it is going to break resistance, you have to assume that people will sell their longs and enter new shorts at resistance unless there is technical proof that it has broken.

If the majority of traders have an inferred, agreed-upon place to sell, it makes no sense for you to be buying there. Trade with the trend.

The first commandment is so important that it warrants repeating from the opposite side of the coin. Support is an area of inferred buying. It makes no sense to sell at support when the majority of prudent traders are buying or covering shorts.

Always assume that support and resistance will hold until technically proven otherwise.

Getting into a move on a fresh break of support or resistance is a symptom of impatience, fear, and lack of discipline. If you agree that price always pulls back, it is much more conservative to wait for it to come back to a key technical level, such as a fib or a moving average, before entering. By entering on a break of support or resistance, you are assuming that price is going to move in a straight line to your target, which is irrational price action and not the type of geometry you should want to be involved in anyway.

Buying or selling out of position because you are afraid to miss a move is the easiest way to find yourself holding the bag at the top or bottom of a false breakout, a typical lesson taught by Thorex to newer traders in order to punish them for their lack of faith.

Losses are a necessary and natural part of trading. After a loss, especially a bad one, the best thing to do is get up and walk around for a few minutes. Doubling the lot size on your next trade is, according to Thorex, cheating, and a sure-fire way to turn a natural down-tick in your equity curve into a horrible dent that will only undermine your confidence and cause even further losses.

Treat each trade independently of all others and let the profit/loss ratio play itself out over time.

Commonly accepted conservative money management strategies implore you never to risk losing your shirt on any given trade idea, and so does Thorex. All traders go through "cold spells", and the only way to survive them with your equity intact is to ensure that no single trade can do detrimental damage to your account.

For extra conservative traders, 5% may be too high. 1%-2% is about right if you want to fly under the radar of Thorex.

This is the only commandment that references a specific technical indicator, but with good reason. If you accept that price trades within its Bollinger Bands 97% of the time, then you are trading with very bad odds when you follow momentum in the direction of the move when price is outside the bands.

No matter how bullish the chart, thou shalt not enter fresh longs when price is above its upper band, and similarly for shorts below the lower band. This is less important on relatively small time frames but is very important on 4-hour charts and up.

The area on your charts outside the Bollinger Bands is owned and patrolled by Thorex. When you stray outside the bands, you are entering his territory, and a quick, painful death awaits your trade.

Thinking of your trades in terms of how much money you are adding or subtracting to your equity will mess with your head. You need to have the freedom to buy and sell repeatable chart patterns without fear of how much money you stand to lose in the event that the market goes against you. If you are watching every tick as a change in the dollar amount of your trade, you will fall prey to emotionality (fear of loss) and will cut trades short, attempt to let your profits run farther than originally planned, and engage in other behaviors banned by the gods.

Think in terms of pips; or better yet, think in terms of the geometry of your trade plans, the consistent application of a positive reward/risk ratio, and nothing else.

Every trade should be the result of a trade plan thought out ahead of time. By the time you enter your trade, you should already have determined under which circumstances or at which levels you will exit the trade, both for a loss and for profit. Without a trade plan and an exit strategy, you are liable to fall prey to the various temptations offered you on a daily basis, which will incur the full wrath of Thorex.

In the Garden of Breakeven, Eve knew no temptation comparable to the urge you will sometimes face to take profits quicker than planned simply because they are available. If you are not able to restrain yourself from closing a trade before it reaches your intended target, experiment with scaling out portions of the trade at logical technical levels of support and resistance, or moving your stop to lock in a certain amount of profit.

Finally we reach the backbone of professional trading. To wholeheartedly welcome a loss on a trade setup that works the other four times out of five is the best way to win yourself the favor of Thorex, and a long entry into the kingdom of consistent profitability.