The Difference Between a Rule and a Preference

"I prefer trading the first hour" is a preference.

"I stop trading after reaching my predefined daily loss limit" is a risk rule.

The distinction matters because preferences can be adjusted when conditions change, while risk rules should not be casually abandoned during emotional moments.

I define which parts of my strategy are flexible and which are non-negotiable.

That makes it easier to evaluate decisions consistently.

Discipline becomes more practical when the rules are clear before the pressure arrives.