This post is an addition to all the traders of my trend follower forex trading system. However, it doesn’t matter if You could also consider printing them out on paper and placing them close to your screen or trading desk. These rules are stressed as keys to success, and it’s really very fulfilling when someone has incorporated them into his methodology and has had good success trading.
There are some basic principles and rules that will make you successful regardless of your trading. These rules have been designed as an addition to all the traders of the trend follower forex trading system.
However, they are interchangeable for stock traders, options traders, futures traders, forex traders and even crypto traders. It doesn’t matter what you trade, it’s the way you trade that makes you successful or not.
Consider printing them out on paper and placing them close to your screen or trading desk. These rules are stressed as keys to success, and it’s really very fulfilling when someone has incorporated them into his or her methodology and has had good success trading.
Important Rules Of Trading
Whether you trade long term or short term, these trading rules will help you in every market.
- Be disciplined
- Use money management in your trading
- The market is never to high to buy or to low to sell
- Every trader has losses, don’t let your losses get to you psychologically
- There is no such thing as a holy grail. Use common sense along with your method of trading. If your indicators are telling you one thing but the market is obviously doing something else, listen to the market
- The market is always right
- Never trade with money you cannot afford to lose
- Only trade markets you are sufficiently capitalized for
- Don’t try and regain all your losses in one trade
- Don’t blindly follow someone else’s recommendations. Do your own homework
- If it’s not going well, take a break for a few days or weeks. Get back when you are mind is at peace
- Don’t trade too many markets. It’s better to be an expert in one market than a novice in many
- Be patient. Wait for the right opportunities. Don’t just trade for the sake of trading
- If the reason you entered the trade is no longer there, get out
- Always use a protective spot to limit your losses
- Always have a game plan. Never enter a trade unless you know where you should get in and where your exit is
- Always cut your losses and let your profits run. Take small losses and large wins
- If your method of trading is working don’t change it!
- By the time you enter a trade you should already know what you are about to do and what you expect from the trade. Placing the trade should be the easiest part of trading. If you are still trying to work things out when entering that particular trade you are not ready for that trade
- The market is not fighting you, so you shouldn’t fight it back