5 Uncommon Rules of Traders
In fact, I’d bet that deep down you know you should be following these rules as well but you aren’t – yet. Today is the day you can commit to doing what works for other wealthy traders and get on that same path. . . Let’s get started. . 1. They plan every single trade. EVERY SINGLE ONE. Every trader I’ve talked with that makes money consistently knows the following about every single trade they take before they even begin entering a limit order into their trading platform: The highest price they are willing to pay (if they are going long) or the lowest price at which they are willing to sell (if they are going short) Their profit target where they will exit if they are “right” Their stop loss where they will exit if they are “wrong”The risk/reward ratio of the trade The exact percentage of their account they are risking Lots of traders do one or two of these things. Few do all of them. In simple terms they know exactly what they want to pay, how much money they anticipate making (or losing) and a very clear idea on the probability of the trade working out. [...]
READ MORE22 Trading rules for Traders and Investors
“I told my psychiatrist that everyone hates me. He said I was being ridiculous – everyone hasn’t met me yet.” . 1) All successful traders use methods that suit their personality; You are neither Waren Buffett nor George Soros nor Jesse Livermore; Don’t assume you can trade like them. 2) What the market does is beyond your control; Your reaction to the market, however, is not beyond your control. Indeed, its the ONLY thing you can control. 3) To be a winner, you have to be willing to take a loss; (The Stop-Loss Breakdown) 4) HOPE is not a word in the winning Trader’s vocabulary; 5) When you are on a losing streak — and you will eventually find yourself on one — reduce your position size; 6) Don’t underestimate the time it takes to succeed as a trader — it takes 10 years to become very good at anything; (There Are No Shortcuts) 7) Trading is a vocation — not a hobby 8) Have a business/trading plan; (Write This Down) 9) Identify your greatest weakness, Be honest — and DEAL with it 10) There are times when the best thing to do is nothing; Learn to recognize these times [...]
READ MOREWhy 90% traders are losing Money…?
It is far easier to funnel a vast amount of money from the masses to a few winners than for a few people to give out money to the majority. Any given game there are few winners So knowing that statistic, do you want to be in the majority or minority? “Do the hard thing” ~Richard Dennis They watch Blue Channels ,They dont do Homework They watch Blue Channels ,They dont do Homework They lack one or two of these four-Money ,Mind ,Method & Target There is an important difference between being reactive and predictive. Trend traders never say “I think that market is going up so I’m going to buy it”. They buy when it goes up. “The price is always right.”
READ MORE7 Trade rules for traders & investors
1. Always Insist on a Margin of Safety. Keep in mind that no asset class or stock sector or particular commodity is free from risk. Always think safety first, being right second. Your thesis may be correct on paper but you can go broke along the way. 2. This Time Is Never Different. The four most dangerous words in investing is “this time is different” because these words set up false expectations. A new era does not mean the era is different in principle. It may simply be a wolf in different clothing. 3. Be Patient And Wait For your Trade. Many investors suffer from “action bias” or a desire to do something. However, when there is nothing to do the best thing to do is nothing. 4. Be Contrarian. The herd is usually wrong. The punch bowl of speculation is usually spiked with denial. Be careful getting in when the getting is at the end. 5. Risk Is Permanent Loss of Capital, Never A Number. Pay attention to valuation, fundamental, and financial risks and thus avoid permanent impairment of your capital. 6. Be Leery of Leverage. Leverage is a dangerous beast. It can’t turn a bad investment [...]
READ MOREGolden Rule For Traders
1. You Must Have a Game Plan 2. You Should Follow the Game Plan 3. Always Trade With a Stop Loss 4. Diversify Your Trades 5. Trade the Big Moves While Filtering Out the Small 6. Trade With the Overall Trend 7. Do Not Listen to the News; Only the Market 8. Don’t Listen to Your Broker. 9. Have Money Management Rules 10. Most Important: Have the Discipline to Follow the Rules
READ MOREBEARS WIN! BULLS WIN! HOGS GO TO SLAUGHTER!
One of the keys to trading is being in tune with the market. You get out when you want to, not when you are forced to, and with a reward commensurate with the riskassumed. This means setting realistic risk-reward objectives and taking what the market gives you. Many traders have retired very wealthy by exiting trades too soon. …
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