1. Market Movement: Prices fluctuate in two directions - up or down. 2. Uncertainty: Future market movements are impossible to predict. 3. Risk Management: Minimize losses and maximize gains. 4. Position Sizing: Calculate position size by dividing risk by stop loss. 5. Trade Independence: Initial trade rationale doesn't guarantee outcome. 6. Loss Control: Skillfully manage loss size, but luck determines win size. 7. Timing: Know when to realize profits and exit.