🏆 10 Trading Rules For Success 🏆
Updated
🏆 Accept the losses. Losses are inherent in trading. There is no earning trader who will not suffer a loss from time to time. In the case of trading, a mistake involves a loss of capital, which can be painful at the very beginning of learning, but as you develop your skills and expand your range of competencies, you begin to understand that it is impossible to successfully win against the market without occasionally incurring a cost for this struggle in the form of losing trades.
🏆 Don't Risk Money You Can't Lose. Playing the financial market involves constant risk in which the most at risk is our capital which we trade. We can't afford to bet with money we can't lose, by which I mean money meant for living, savings, family money, selling usable items to fund an account with a broker. There is always the temptation that if only we had a bigger trading account we would play better and take less risk, which is of course nonsense. No matter how much money we trade with, whether it's hundreds, thousands or even hundreds of thousands we will always be tempted to play with even more money to make profits even bigger, unfortunately, most likely the only thing that increases is the loss on the trading account. Each of us must find the right amount of money for him, I would suggest at the very beginning to operate with money that we are able to recharge the broker in a few weeks, for some it will be 10% and for some 30% of monthly income.
🏆 Treat Trading Like a Business. Trading is such a business venture of ours, starting with the capital we have to put up to get into it, then developing a strategy that will bring us profits, after protecting ourselves from losses, including costs such as (cost of opening a trade, swap, spread), taxes. We can't treat trading as a hobby or as a job from 8-8. Profits on the financial market are not so predictable that we can say with a clear conscience how much we'll earn next month, and what's more, it may turn out that instead of earning, we'll lose. As for the fact that trading should not be considered a hobby, I can only add that trading requires much more focus and commitment than typical hobby activities, inherent in it is the theme of making and losing money, which for most is a very emotional subject.
🏆 Control Your Emotions. Control of emotions is a key issue in any field if we talk about the master level, from many interviews of professionals in their fields we can repeatedly hear about how control of emotions is of great importance in their field especially on the results they get. As trading is a competitive field. Someone wins someone loses. As our earned money is at stake, I don't need to stress that this doesn't make the whole thing any easier. The most important thing is to realize that emotions will occur and instead of suppressing this fact we should accept it. In order to control emotions, the most important element is to realize that we are under its influence. Because taking action under the influence of some extreme emotions is simply a mistake and it is best in such a case to step away from trading for a day and sometimes even a week to simply cool down. One of the best ways to reset your emotions is to sleep, take a nap and even meditate, and for all those who think that meditation is not for them, but only for tree huggers, I would like to introduce you to one of the famous personalities from the world of investment, which is Ray Dalio, who since 1985 has served as co-head investment director of the world's largest hedge fund Bridgewater Associates. Whose fortune amounts to $19.1 billion and has repeatedly mentioned that transcedental meditation was the best investment he made in his life.
🏆 Manage risk. Such a broad topic that I will prepare a separate post for it, in short, we need to determine what % of capital we can devote to one concluded transaction, in my opinion we should not risk more than 1 to 2% of capital per position. In my opinion, we should not risk more than 1 to 2% of capital per position. We must also take into account the possibility of correlation, because what does it matter if we open 10 transactions with a rate of 2% if all of them are concluded on correlated markets such as forex or stocks. Then our risk is no longer 2%, but in the worst case 20%.
🏆 Stay disciplined. Learning to trade should be perceived more as a marathon rather than a sprint, on our way we will meet many disappointments and failures that are inherent in learning any field, we must not give up, we must remain disciplined and focused on the final result, in trading there is no room for distraction and making decisions on the spur of the moment. Markets are not forgiving of any mistakes or distractions, sometimes one moment of absentmindedness can affect the state of our portfolio. As traders, we must remain in a constant circle of learning and acquiring new skills. We will not achieve any results if we approach trading once a quarter. Taking up trading should be considered in the category of a future source of income about which we want to learn as much as possible.
🏆 Know your strategy. We need to know and understand perfectly the reasons and the way to trade, we need to be 100% aware of when to take trades and when we are remote from the market. We need to know what risks we can take on a given taransaction when we close it and what we will have to do (if).
🏆 Forget The Holy Grail. Just forget about it, if you are still looking for an idle indicator that will only give you profitable signals with your only right parameters, forget about success. Trading is something much more broad and deep than just the intersection of two moving averages. There are so many factors at work on traders' decisions that affect price movement that we can't even comprehend with our brains. I'm not saying here that it's not worth using indicators or fundamental data. I mean only not to base your decisions on them and not to get stuck in a vicious circle of testing a new strategy every week.
🏆 Trend is Your Friend. I'm not going to elaborate here. You simply have a higher probability of success playing with the trend and that's it.
🏆 Never stop learning. Never but never stop learning, read everything that falls into your hands and you find valuable at any given time. Watch, listen read about trading meet other traders ask questions and never stop learning. Remember follow my profile fits perfectly into the circle of continuous learning :D
🏆 Like the post? Follow my profile for more!
🏆 Don't Risk Money You Can't Lose. Playing the financial market involves constant risk in which the most at risk is our capital which we trade. We can't afford to bet with money we can't lose, by which I mean money meant for living, savings, family money, selling usable items to fund an account with a broker. There is always the temptation that if only we had a bigger trading account we would play better and take less risk, which is of course nonsense. No matter how much money we trade with, whether it's hundreds, thousands or even hundreds of thousands we will always be tempted to play with even more money to make profits even bigger, unfortunately, most likely the only thing that increases is the loss on the trading account. Each of us must find the right amount of money for him, I would suggest at the very beginning to operate with money that we are able to recharge the broker in a few weeks, for some it will be 10% and for some 30% of monthly income.
🏆 Treat Trading Like a Business. Trading is such a business venture of ours, starting with the capital we have to put up to get into it, then developing a strategy that will bring us profits, after protecting ourselves from losses, including costs such as (cost of opening a trade, swap, spread), taxes. We can't treat trading as a hobby or as a job from 8-8. Profits on the financial market are not so predictable that we can say with a clear conscience how much we'll earn next month, and what's more, it may turn out that instead of earning, we'll lose. As for the fact that trading should not be considered a hobby, I can only add that trading requires much more focus and commitment than typical hobby activities, inherent in it is the theme of making and losing money, which for most is a very emotional subject.
🏆 Control Your Emotions. Control of emotions is a key issue in any field if we talk about the master level, from many interviews of professionals in their fields we can repeatedly hear about how control of emotions is of great importance in their field especially on the results they get. As trading is a competitive field. Someone wins someone loses. As our earned money is at stake, I don't need to stress that this doesn't make the whole thing any easier. The most important thing is to realize that emotions will occur and instead of suppressing this fact we should accept it. In order to control emotions, the most important element is to realize that we are under its influence. Because taking action under the influence of some extreme emotions is simply a mistake and it is best in such a case to step away from trading for a day and sometimes even a week to simply cool down. One of the best ways to reset your emotions is to sleep, take a nap and even meditate, and for all those who think that meditation is not for them, but only for tree huggers, I would like to introduce you to one of the famous personalities from the world of investment, which is Ray Dalio, who since 1985 has served as co-head investment director of the world's largest hedge fund Bridgewater Associates. Whose fortune amounts to $19.1 billion and has repeatedly mentioned that transcedental meditation was the best investment he made in his life.
🏆 Manage risk. Such a broad topic that I will prepare a separate post for it, in short, we need to determine what % of capital we can devote to one concluded transaction, in my opinion we should not risk more than 1 to 2% of capital per position. In my opinion, we should not risk more than 1 to 2% of capital per position. We must also take into account the possibility of correlation, because what does it matter if we open 10 transactions with a rate of 2% if all of them are concluded on correlated markets such as forex or stocks. Then our risk is no longer 2%, but in the worst case 20%.
🏆 Stay disciplined. Learning to trade should be perceived more as a marathon rather than a sprint, on our way we will meet many disappointments and failures that are inherent in learning any field, we must not give up, we must remain disciplined and focused on the final result, in trading there is no room for distraction and making decisions on the spur of the moment. Markets are not forgiving of any mistakes or distractions, sometimes one moment of absentmindedness can affect the state of our portfolio. As traders, we must remain in a constant circle of learning and acquiring new skills. We will not achieve any results if we approach trading once a quarter. Taking up trading should be considered in the category of a future source of income about which we want to learn as much as possible.
🏆 Know your strategy. We need to know and understand perfectly the reasons and the way to trade, we need to be 100% aware of when to take trades and when we are remote from the market. We need to know what risks we can take on a given taransaction when we close it and what we will have to do (if).
🏆 Forget The Holy Grail. Just forget about it, if you are still looking for an idle indicator that will only give you profitable signals with your only right parameters, forget about success. Trading is something much more broad and deep than just the intersection of two moving averages. There are so many factors at work on traders' decisions that affect price movement that we can't even comprehend with our brains. I'm not saying here that it's not worth using indicators or fundamental data. I mean only not to base your decisions on them and not to get stuck in a vicious circle of testing a new strategy every week.
🏆 Trend is Your Friend. I'm not going to elaborate here. You simply have a higher probability of success playing with the trend and that's it.
🏆 Never stop learning. Never but never stop learning, read everything that falls into your hands and you find valuable at any given time. Watch, listen read about trading meet other traders ask questions and never stop learning. Remember follow my profile fits perfectly into the circle of continuous learning :D
🏆 Like the post? Follow my profile for more!
Note
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Feel free to share these rules with your friends <3Note
A post worth recalling at a time of high volatility.
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💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
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