22 trading rulesThe market rewards discipline and requires you to fulfill your specific role. For instance, as a tattoo artist, your responsibility is to provide quality tattoo, while as a trader, your task is to exercise discipline in decision-making. If you remain disciplined, any reasonable strategy can yield profits in the long term. However, even the most flawless strategy will fail to generate income if you lack self-control.
Here are some guidelines to follow:
1.Maintain discipline consistently. Trading demands unwavering discipline at all times. Save extreme emotions, excitement, and other non-work-related feelings for your personal hours. While working, stay focused and determined, adhering to your plan and experience.
2.Always reduce the risk of failed trades. If you experience a series of unprofitable transactions, decrease the volume or percentage of risk from your deposit, rather than increasing it. Some individuals mistakenly believe that if they have had three consecutive losses, the fourth trade is bound to be profitable and will make up for the previous losses. However, the chances of profit or loss in the fourth trade remain the same. Relying on luck is unnecessary.
3.Avoid turning profitable trades into losing ones. Close positions promptly when you recognize the risk of holding them further. If there are signs of market weakness and continuing to hold the position jeopardizes your profit, either take your existing profit or exit with a small loss. In most cases, you will have the opportunity to find another entry point that is equally good or even better.
4.Ensure that your highest loss does not exceed your highest profit. Keep a record of your trades to determine the mathematical ratio of profit to loss and the ratio of profitable to losing trades. If your losses surpass your profits, you need to optimize your system; otherwise, it may become unprofitable in the long run.
5.Develop a trading system and stick to it. Avoid constantly switching from one system to another. If you decide to become a trader, select a specific approach and commit to it. Over time, you will gain a deep understanding of the system and develop your own market perspective.
6.Be true to yourself; don't try to imitate others. If you find that scalping is not suitable for you, consider intraday or swing trading instead. Just because someone excels at intraday trading while you excel at swing trading doesn't mean you should abandon your preferred style. Each individual has their own trading style, and there is a style that matches every personality. Some traders earn substantial profits by only opening ten trades per year, while others achieve the same level of success by opening ten trades per day. Moreover, someone may be comfortable opening a trade with a large lot size, while you prefer a maximum of one lot. This doesn't imply that you are a poor trader; it simply indicates that everyone has their own comfort zone. Discomfort in trading can only be detrimental. Stay true to yourself and find your own style.
7.Remember that there will always be another day to trade, so don't risk too much. Some beginners risk 20-50% or even more of their deposit, only to find themselves with nothing when a profitable entry point arises. Such risks often shatter one's psychology, and it can be difficult to recover. However, if you make a few mistakes with standard and small risks, you will always have the next day to learn from and correct your errors.
8.Earn the privilege to trade in high volumes. Even if you have tens or hundreds of thousands of dollars in your account, it doesn't mean you should immediately start trading, for example, 10 lots. Begin by trading with the minimum volume allocated for your deposit. Only when you close ten consecutive sessions in profit should you consider increasing the volume.
9.The first conscious loss you encounter is the most valuable. It is during this moment that you understand the significance of stop-loss orders as part of your system. A stop-loss serves as a mechanism to exit a position when the trade is no longer favorable. By recognizing this and reacting appropriately, you are able to protect your account from significant losses. Understand that a stop-loss order is a benefit. See point 15.
10.Avoid relying on hope or prayer. If you catch yourself hoping for a positive outcome in a trade, it likely means that the trade is no longer profitable. Avoid concealing this fact from yourself as a trader. This psychological inclination to hope shields us from emotional distress and difficult decisions. However, as a trader, you must objectively assess the situation. If you realize that you are starting to rely on hope, reevaluate the facts and conduct a thorough analysis of your trade. It may no longer be as favorable as you initially thought.
11.Don't overly concern yourself with news. While trading the news is a separate strategy that may work for some traders, most try to avoid it. If the news is already known in advance, the market will react to it beforehand. However, if the information becomes clear only during the news release, it becomes challenging to trade based on such inputs. News that is widely broadcasted on TV or the internet tends to be outdated information when it comes to the market.
12.Choose a trading style that suits your circumstances. If you have a small account and can only afford short stop-loss levels, you may need to start with scalping or intraday trading. If you possess patience and adequate capital, swing trading could be an option. Long-term trading generally requires significant capital.
13.Embrace your losses. It doesn't mean you have to enjoy losing money. However, during your trading journey, you will inevitably experience losses. If you have a negative mindset towards losses, it will hinder your overall performance. Recognize that by exiting trades promptly and accepting short-term losses, you safeguard your account from larger losses in the long run. Learn to appreciate the importance of managing losses effectively.
14.Avoid setting excessively large stop-loss levels. Doing so will erode your profits from small trades. Consequently, instead of achieving a small profit, you may end up at breakeven or a slight loss, even if your trade initially showed promise.
15.Take consistent actions each day or week. Set a goal to capture a certain number of pips or points daily if you are a scalper or weekly if you trade intraday (the specific numbers provided here are for illustrative purposes and should not be taken as objectively evaluated results). By accumulating small gains over time, you can earn a significant amount by the end of the year.
16.Don't rely on a single trade for salvation. Some traders mistakenly believe that a single trade has the potential to generate substantial profits, recover previous losses, or significantly impact their overall performance. However, trading revolves around a series of transactions. No single trade can dictate your success. Instead, your behavior across ten or twenty trades holds tremendous importance in surviving and thriving in the market.
17.Consistency breeds confidence and control. Starting each morning with the knowledge that following your rules will result in profitable trades instills a sense of assurance. Similar to other traders, begin your day by reviewing the charts you trade and gathering the necessary information—perform top-down analysis, assess points of interest, liquidity, order flow, and more. Maintain this ritual consistently, as repeated actions are essential for earning profits in trading.
18.Master the art of position management. If you find yourself in a trade that is progressing favorably, consider partially closing your position to protect your profits in case the price suddenly reverses. Being flexible in managing your positions can lead to increased profitability and emotional balance in the market.
19.Execute the same trades repeatedly. Focus on specific trade setups that have proven successful for you. Avoid trying to trade multiple patterns simultaneously. Instead, identify two or three formations that work well for you and trade them consistently. Become an expert in those setups and execute them confidently and precisely. Avoid spreading yourself too thin.
20.Avoid excessive doubt and overanalysis. During the execution of a trade, trust your analysis and decision-making process. Doubts and unnecessary analysis during a trade can lead to detrimental outcomes. Overthinking can consume you and make it challenging to differentiate between the right and wrong decisions. Leave fluctuations and excessive analysis to the market. Conduct trade analysis before or after trades, not during them.
21.In the eyes of the market, all trades are equal. At the start of each trading day, everyone is on an equal footing. You haven't made any profits or losses yet. Your earnings depend solely on your actions. If you adhere to discipline and follow your predetermined rules, you will generate profits.
22.The market is an impartial judge of your trades. The market doesn't play favorites; it remains indifferent to your presence. Respect the market's authority and refrain from attempting to defy it. Engaging in a battle against the market is akin to fighting your reflection in a mirror. Instead, focus on understanding and following the market's rules.
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Tradingeducators
The Cost Of Missing Your Best TradesWhat if your best trades were the ones you frequently do not enter?
There are not many positives in missing trades because it's money you're not adding to your trading account. You're losing more than money when you don't enter your best trades. Let's dig in.
Lost of confidence 😫
If you've ever said to yourself, "Why didn't I take the trade?" It's because you saw the setup. Your rules were met, but something inside of you couldn't push the button.
It could have been your own thoughts. You could have feared losing the trade in result losing money. Either way, you lacked the strength to push the button.
It's ironic how one button determines the fate of your abilities huh?
Hear this, you can begin doubting your ability as a trader when you don't take your setups. Remember that your eyes see first and you must take action regardless of your personal thoughts or feelings. You used logic to see the trade so use it to enter the trade.
Then let the trade tell you if you were wrong or right.
Risk of losing trades outweighing the trades you don't enter.
Have you ever looked at your trade journal just to realize you could be profitable if you'd enter all of your trades?
Most traders I consult with hesitate the moment they realize they have a good entry. Did you catch that? They don't question the analysis. They question themselves the moment it's time to hit the buy or sell button.
Like most traders, you're good until you have to show up to take action. This is common, but can also be the reason why you may not be seeing more profits than losses.
Revenge Anyone?
Revenge is a strong feeling. Taking action to get revenge results from the feeling of losing something so precious and your money is precious to you so it's only fitting you have a right to want it back.
However, money loss doesn't always come from trades you've enter. Consider this:
You see a trade. This risk to reward is 1:2. So you know you have a chance to double the amount you risk. You're excited. You see the outcome. So, you put a monetary value on the trade and realize if you win the trade you can win $1000. If you lose the trade you can only lose $500.
Something happens. You never enter. It could be for varying reasons. You weren't at your chart because you got busy. You got called in to go to work. Price reach where you wanted to enter, but you didn't like what you saw.
Either way you're not down $500. You're at a loss of $1000.
That leads me into my last point. The cost of missing your best trades setups is the risk of making the money you desire.
That $1000 could have gone a long way for you. It could have covered a car note. Paid your utilities for the month. Added more leverage to your trading account.
Either way it meant something to you, but you can't feel it because you feel like you missed out on it.
I get it. I've been there. You're not alone.
You are learning something though. You're learning you don't want to keep missing these setups so you're going to do something about it.
I have 3 suggestions for you. Let's see if you've thought of these:
* Adjust your timeframes so they fit your schedule
*Set pending orders
*Trade less pairs so you can focus on your best setups
Hear me well my dear friend, you may not always enter your best setups, but you can miss less.
Keep your trading easy for you. Don't overthink the entry. Don't tell yourself you're wrong. Trust me, the market will tell let you know if you're doing things correctly or not.
I pray you enjoyed this reading. If you have please like the post and share it.
Please share your thoughts below.
Many blessings to you,
Shaquan ❤️
Powerful Traders, everyday EWA's analysing & working process Hello.
Frankly, very wonderful & complicated irregular correction.
Powerful Traders are always the deep mind analysis of any charts & financial instruments.
No boundaries & limitation!
Love you EWA/EWP.
Everyday EWA's random training process is an important part for the experience & symbiosis with the Market.
Kind regards, Team Traders "Powerful Traders" netflix
Powerful Traders, everyday EWA's analysing & working process (e)Hello.
Everyday EWA's random training process is an important part for the experience & symbiosis with the Market.
Kind regards, Team Traders "Powerful Traders" netflix
Some of the great speculators that got into great VIP groupsAre you a team player? No great project was done by a single person, doing something as a team is an immense strength I cannot stress that enough.
On this site if I remember right I talked alot about famous speculators, Ray Dalio, Paul Tudor Jones, Jesse Livermore, George Soros...
But I would like to take a look at the famous ones that made the decision to join a VIP/Premium signal group and get a mentor + a team to brainstorm with.
I want here to look at each of them and describe how it helped them and what they are famous for.
Ready? Ok here goes:
