Rules for successful trading

1. If you want to stay in this business, leave “hope at the door and put a stop”
2. When you start trading (open a position), start looking for signs that you are wrong. If you see them, then get out before your stop is hit.
3. If there is a guarantee in trading, it is: “excited players drain their accounts”
4. Don’t jump into the “next hot thing”. Develop your plan and follow it.
5. There is no right or wrong in trading, but there is a well-traded situation and a badly traded situation
6. Be aware of your own emotions. Irrational behavior is the downfall of every trader. If you shout in front of your computer begging for the price to move in your direction, you should ask yourself, “Is this rational?” Easy entry. Calm out. Put stops. Don’t shout.
7. Don’t worry too much – excitement increases the risk as it obscures the mind.
8. Don’t trade too much – be patient and wait for 3-5 good deals.
9. If you come to trade with the idea of ​​making “big money”, you are doomed. This mental attitude is the reason for blowing up most bills.
10. Don’t focus on money. Focus on the proper execution of commercial operations. If entering and exiting the trade is rational, the money will take care of itself.
11. If you focus on money, you will begin to impose your will on the market to meet financial needs. There is only one result from this scenario: you will give all your money to traders who have focused on limiting risk and letting their profits grow.
12. The best way to minimize risk is not to trade. This is a great truth, especially during low-volatility. If the price is not moving properly, then do not trade. Just sit back, watch and try to learn something. By doing this, you are more active in reducing risk and protecting your capital.
13. You do not need to trade 5 days a week. Trade 4 days a week, so you will be more witty during trading.
14. Prevent the loss of your capital. This means stopping and sometimes staying out of the market.
15. Be relaxed. Take a position and put a stop. And if you decide to stay out of the market, who cares? You just do your job and actively defend your capital. Professional traders constantly suffer small losses. Amateurs resort to hope and sometimes prayers to save their trade. In life, hope is a very positive thing. In the world of trade, hope is a virus that infects and destroys.
16. Do not leave the position “red” for the night.
17. Hold the winning positions as long as they move in their path. Let the market take you outside at its last stop.
18. “Money Management” is the secret of success. Don’t overload your trade. The more you overload it, the more hope comes into play when everything goes against you. The hope of trade is like acid for the skin, the more it stagnates, the more painful the results become.
19. There is no logical reason to hesitate when stopping.
20. Professional traders accept losses. To make a mistake and not accept the loss is detrimental to your account and mind.
21. Once you have suffered a loss, forget about continuing to trade at any cost, especially when the loss is small. Do yourself a favor and take advantage of every opportunity to clear your head by taking a small loss.
22. Never let a position go against you more than 2% of your capital. Wider position – a tighter stop.
23. Use a daily chart to get an idea of ​​the 30 day trend, an hourly chart to get an idea of ​​the daily trend and a 5 minute chart to identify entry points.
24. If you are hesitant to take a position, it shows a lack of confidence, which is not necessary. Just take a position and stop. Traders lose money in positions every day. Keep them small. The confidence you need is not whether you are right or not, but that you will always stop no matter what. So, in fact, you can alleviate this hesitation to “pull the trigger” by continuing to put your stops and reinforce this behavior.
25. Adding to a losing position is like a sinking ship that takes in extra water.
26. Add to a position that goes your way.
27. Adrenaline is a sign that your ego and emotions have reached a point where they cloud your mind. Realize this and immediately narrow your stop significantly to keep your winnings or close the position.
28. Don’t expect “Armageddon” on the market, even if it comes, you will still be left without positions, because you will close them early or you will try to scalp it.
29. Most of the time you want to buy the product before the price jumps, then sell to current players after it jumps. If you buy after a jump, realize that professional traders are selling their positions in order to test the strength of the trend. They will have them buy back below the level to which the price has jumped – where you usually put your stop when you buy after a jump. Greed comes into play when the price jumps again and the current players embark on a chase and buy the product. Understand how the trends are arranged and use this as an advantage when opening and closing a position.

30. Excessive self-confidence leads to financial ruin. When you justify losses with things like “They’re just putting weak hands in here,” that’s how you feel. Don’t hold a losing position. Cut losses. You can always get them back.

31. Unfortunately, discipline is not learned until you fail (close) an account. And until you do that, you think it can’t happen to you. Indicative is this attitude that makes you hold losing positions and do it wisely all the way to the bottom.

32. Withdrawing profits every month and depositing them in your current account is a good practice. This action will help you understand that this is a business and your business needs to generate profits every month.

33. Professional traders always invest a small part of their capital in one position. Or if they occupy a large position then they limit the risk to 1-2% of their capital. Amateurs usually put a large part of their bill in one position and give it “room to move” in case they are right. This situation creates emotions that destroy their accounts, while professionals have the opportunity to make decisions and limit their losses because they strictly determine their risk.

34. More differences between professionals and amateurs: – Professionals focus on risk mitigation and capital protection. Amateurs focus on how much money they can make in each trade. Professionals always take the money of amateurs.

35. Don’t be a hero! In this market, the characters are defeated. Adding to a losing position is a “heroic move”. The commodity market does not require blind courage, but elegance, finesse. Don’t pretend to be a hero.

36. School of Strong Beats in the Same Way… Sadly, traders never realize the importance of “rules” until they “blow up” their bills. Until you lose everything, it is not clear to you that it is very important and you must follow the basic rules of professional trading (limit the loss, let the profit grow, etc.).

37. The market intensifies bad habits… If you find yourself in a losing position at the beginning, which goes to 20% of your capital and there is an opportunity to get out after a big rise / fall, you are doomed. The market intensifies bad habits. The next time you allow a position to go to a 20% loss, you will hold it thinking that you will be able to get out again with some big movement (rise / fall) if you are patient and wait long enough. Then it no longer matters whether the product has been renewed or if good news has come out. You still need to protect your capital. Whether it’s sensible or not, you control the risk by always stopping.

38. Who is responsible for your trade? A distinctive feature of an amateur trader who will not achieve anything in this business is that he constantly blames everything but himself as the cause of bad trade. While the professional sounds like this: “I’m guilty because this position is too big for me.” “I’m guilty because I didn’t fit my risk standards” “I’m guilty because I really don’t know how to trade” “I’m guilty because I know market players can take my money and I knew I was going there.” “I’m guilty because I know there are risks in trading and I didn’t identify them fully enough when I took that position.”

39. Amateurs always think, “How much money can I make from this position?” And the professionals like this: “How much money can I lose from this position?” The trader who controls his risk takes the money of the one whose head is floating in the clouds.

40. At some point, traders find that no one can tell them exactly what will happen the next business day, and you may never know how much money you will make. Then the only thing you have to do is determine how much to risk in order to find out if you are right or not. The key to successful trading is to focus on how much money you risk, not how much you can earn.