Market Intelligence › Basic Terminologies

RULES-BASED SYSTEM

Less discretion, more condition – so that the same process runs every day.

Published by The Retail Trader · JUL 31, 2026 · Trading Psychology

Rules-Based System — Discretion less, conditions more — so that the same process runs every day.

WHERE THIS FITS IN

This term comes under Trading Psychology, in the section "TOOLS OF DISCIPLINE". Emotion cannot be suppressed, a system is created around it:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Trading Plan
• Checklist
• Trading Journal
• Pre-Market Routine
• Cooling-Off Period
• Screen Time Limit
• Process vs Outcome
• Review Routine

To read the entire group and all its examples in one place, see the journal "TRADING PSYCHOLOGY: Words from the Mind" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

Back to Market Intelligence