List of personal rules for trading that makes U successful

Discussion in 'Psychology' started by novice, Aug 27, 2009.

  1. GoAhead

    GoAhead

    For me, building strategies according to the current market conditions has always helped.
     
    #161     Feb 3, 2022
  2. deaddog

    deaddog

    What have you learned?
     
    #162     Feb 3, 2022
  3. Create a trading plan and follow it.

    Have a decent trading capital

    Take a practical approach to trading and don’t be overwhelmed by your wins and losses.

    Work on your psychology

    Do not overtrade

    Learn to manage your risk

    Always backtest

    Be persistent
     
    #163     Feb 8, 2022
  4. Be patient and never stop learning there is an ocean of information and you can never know enough of you want to be a successful trader then chase valuable information and apply that knowledge to become trader a better trader.
     
    #164     Feb 9, 2022
    1. Always Use a Trading Plan
    2. Risk Only What You Can Afford to Lose
    3. Always Use Stop Loss and Take Profit orders
    These are the three best personal rules I have followed in trading and still makes me keep going good with a good track record.
     
    #165     Feb 15, 2022
    comagnum likes this.
  5. RedSun

    RedSun

    I still remember the day when I entered SOXL at $33.88. And several ET members produced nice charts to show me that, do not catch the falling knife..... Nice.

    I'm not saying that they were wrong. But I've heard of such rule for more than 20 years. Trading rules are not hard set rules. Or the broker rules that we can't violate. Or account will be closed. Rules have no brain to think. Yet human have brains.
     
    #166     Feb 15, 2022
  6. 1. Always another day, always another trade
    2. Don't get greedy, see 1
     
    #167     Feb 15, 2022
    Paul Sachin likes this.
  7. Cubation

    Cubation

    I think that intuition plays a very important role in trading. At least this is what has helped me a lot. We are always taught to shut our emotions and use logic but I’d say trading is more of an art than science and if you are a naturally intuitive person, capitalize over it to take your trading to a new level.
     
    #168     Feb 25, 2022
  8. easymon1

    easymon1

    https://www.investopedia.com/articles/investing/091714/5-skills-traders-need.asp
    Analytical Skill
    One skill every trader needs is the ability to analyze data quickly. There is a lot of math involved in trading, but it is represented through charts with indicators and patterns from technical analysis. Consequently, traders need to develop their analytical skills so they can recognize trends and trends in the charts.
    Research
    Traders need to have a healthy thirst for information and a desire to find all the relevant data that impacts the securities they trade. Many traders create calendars of economic releases and set announcements that have measurable effects on the financial markets. By being on top of these information sources, traders are able to react to new information as the market is still digesting it.
    Focus
    Focus is a skill and it increases the more traders exercise it. Because there is so much financial information out there, traders need to be able to hone in on the important, actionable data that will affect their trades.
    Some traders also focus on the types of securities they trade so they can deepen their understanding of a specific sector, industry or currency to the point where it becomes a competitive advantage against less specialized traders.
    Most of the required skills are learned, and with a bit of effort, traders can improve their analytical capacity, research abilities, focus, control and record keeping.
    Control
    Hand in hand with focus is control and, specifically, self-control. A trader needs to be able to control their emotions and stick to a trading plan and strategy. This is especially important in managing risk by using stop losses or taking profits at set points.
    Many strategies are designed so the trader loses a little in bad trades and systematically gains more on good trades. When traders start to get emotional about their trades—good or bad—strategy goes out the window.
    Record Keeping
    One of the most important keys to trading is record keeping. If a trader records the results of his or her trades diligently, then improving is simply a matter of testing and tweaking strategies to find a successful one. It is hard to show real progress if you aren't keeping accurate records.
     
    #169     Feb 25, 2022
  9. Aero Dave

    Aero Dave

    1 Don't indulge in revenge trading
    2 Don't put what you can't afford to lose.
     
    #170     Mar 2, 2022