Tell me the rules of Trading....

Discussion in 'Psychology' started by ultranet, Oct 26, 2006.

  1. Thanks Kiwi, those are really good.

    #11     Oct 26, 2006
  2. You don't need 10 rules. You need one what makes sense to you. If I followed that rule I'd be profitable every mother fucking year since 1999. But no, I'm a moderatly successful equities swing trader trying to be a futures day trader for some god damn reason.
    Can you tell I just got my ass handed to me....again. My hats off to you guys/gals that can day trade futures, or any day trading for that matter. I just can't get it!
    #12     Oct 26, 2006
    #13     Oct 26, 2006
  4. Sorry for the double post. Trying to edit out some of the strong language and can't even do that right.
    #14     Oct 26, 2006
  5. What I've learned is, there comes a point when you realize you have to just stop trying to learn more, and just hunker down to do what you already know how to do. It's like moving up to the next table in NL poker, you know you will get your ass kicked for a while as you adjust, and you can always keep looking for the next bigger game. But eventually you have to just sit down where you are comfortable and produce.

    As for rules, what kiwi listed was pretty damn good. :)
    #15     Oct 26, 2006
  6. 1. Learn to read price action - take quality reversals from fluid moves. Use candles - it's much easier to read quality. The success rate is much higher if you understand quality.

    2. Learn several different ways to discover tested & proven Support & Resistance

    3. Learn to read an indicator like stochastics - not for the crossover signal - that's too late. Price action will give you the Buy/Sell signal 1st, the stochastic will tell you you are in a good zone for a reversal to occur that will pay well.

    4. Use Range charts to take a lot of the jellywobble out of bars and indicators.

    5. Wait for the combination of points 1-3 to take a high percentage trade.

    6. Use cash charts alongside the futures charts to help take more of the wobble out of the chart.

    7. Use 3 timeframes. Take the best zone in the biggest timeframe and hit the set up in the smallest timeframe. The biggest timeframe will give you the trend.

    8. Sometimes you will need 3 pops to get in the trend but most times 1st hit will work when you have acquired decent skills.

    9. All of the above require thousands of hours screen watching and paper trading to sharpen your skills. Your winning demands you have honed your skills to a higher level that your competitors.

    10. Become self reliant. Don't take anyone elses signals. Burn your books. You learn gunslinging shooting cans before you get in a gunfight. Books won't make you a gunslinger. I'll meet you in the market and I'll know if you've been reading books.
    #16     Oct 26, 2006
  7. 11: Jack Daniels is your best and only friend
    #17     Oct 26, 2006
  8. Forgot that one Trader28
    #18     Oct 26, 2006
  9. 1) Protect your original capital.

    2) Remember rule #1 above

    .... starting at #3 you establish your own rules through experience.
    #19     Oct 26, 2006
  10. The first thing you got to do is understand that there are no rules. Those that tell you about the need for rules are intentionally or unintentionally misleading you.

    Rules are designed to instill fear and prohibit you from taking correct action.

    All is not lost tho. By observing the limitations of so called rules, you begin to appreciate the power of principles.

    At some point, all successful traders end up with a set of principles to guide their actions, while throwing the notion of rules out the window.

    Think carefully where you wish to start.
    #20     Oct 26, 2006