I almost made a big mistake this week. On Wednesday, I was up 1.2% on one of my $100K funded accounts and got greedy. I saw a setup on EUR/USD that looked perfect and I nearly doubled my normal position size to try and hit the profit target in one go. I caught myself just before clicking the button, remembering the first rule I learned after failing my first six challenges: never change your plan mid-day. It’s a lesson the diamond market seems to be learning the hard way right now.

I saw the news today that the Indian Diamond Exchange literally called in a priest to revive trading. Let that sink in. When your market strategy involves divine intervention, you’re not managing risk anymore; you’re buying a lottery ticket. This is the ultimate sign of a market in crisis, with demand falling off a cliff. For me, this isn't about diamonds—it's a flashing red light for trader psychology. It’s the same desperation I see from guys trying to pass a challenge in two days with a single Hail Mary trade. It never ends well.

To avoid this exact type of desperation, my funded trader daily routine is non-negotiable. It's a mechanical process designed to remove emotion entirely. Before the market even opens, I check my max daily drawdown on every single account. For a $100K FTMO account, that's $5,000. I then set my hard stop for the day at a fraction of that—usually 1.5%, or $1,500. If I hit that, the computer is off. No exceptions, no prayers.

A lot of traders complain about the strict rules, but I see them as guardrails. A proper prop firm challenge rules comparison shows why. TopStep's trailing drawdown on futures is brutal but forces you to cut losers instantly. FTMO's static daily drawdown is more forgiving but can tempt you to 'revenge trade' within the daily limit. Knowing which rule set fits your psychology is critical. My spreadsheet tracks all of this, and it’s the foundation of my entire strategy. The challenge isn't about making money; it's about proving you won't lose it all.

The desperation in niche markets like diamonds makes me cautious about overall consumer sentiment. That could hit the S&P. As my friend Viktor Reyes has pointed out, high oil prices are already squeezing consumers, and this is another piece of that puzzle. Meanwhile, I'm also keeping an eye on the macro picture that Emma Blackwood often covers, as central bank policy will be key.

• ES (E-mini S&P): Watching for a break of the 5240 support level. If that goes, I'm expecting a quick flush towards 5200.
• EUR/USD: The pair is struggling at the 1.0850 resistance. I'm short from 1.0845 with a stop above 1.0870, targeting the week's lows.
• Gold (XAU/USD): Holding above $2,350. Viktor's calls on commodities have been sharp, and I'm using this as a risk gauge. A break below could signal risk-on sentiment.

Ultimately, seeing an entire exchange resort to prayer is a powerful reminder that we're all just a few bad trades away from irrationality. So, what's the one rule you have that keeps you from making 'desperation trades'?