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Best golden rules for trading

 Best golden rules for trading

Best golden rules for trading

Best golden rules for trading

1 preface


 In this composition, we cover the many important rules that should noway be broken in trading. However, with discipline, you'll be well on the way to being a profitable dealer, If you can apply these rules constantly.


 The rules we cover are


 o Have specific pretensions and objects


 o Be harmonious and disciplined


 o Let gains run


 o Cut losses short


 o noway add to a losing trade


 o Do not take the too-important threat


 o Only trade positive expectation systems


 o Minimize all trading business costs


 o Be well-conditioned educated


 o Do not trade spooked plutocrats


 Each of the rules will now be bandied.


 2 The Golden Rules of Trading


 The ensuing sections outline a set of rules that can significantly ameliorate your chances of success if they're understood, rehearsed, and enforced constantly in your trading

These rules have been learned the hard way, by study, exploration, trial- and- error, and the ineluctable miscalculations that everyone makes when they start a trading business.


 We hope that you can learn from the work we've done, and benefit from our experience. The rules will now be bandied.


 Have specific pretensions and objects


 Many effects are more important to your trading success than having set( i.e. written) pretensions and ideals for what you're aiming to achieve. 

It's amazing to me how frequently we hit our targets, meet our objectives, and reach our pretensions only when we articulate them and write them down.


 For any business to be successful it must have measurable objects that are attainable. In trading( obviously) the primary ideal is to make plutocrats, but it's important to have other objects that aren't purely cash-related

We must always flashback that price and threat go hand-in-hand in trading and that we can not anticipate achieving high returns without planning for high threat( i.e. draw- campo).


 Your objects and pretensions will be veritably specific to you, but they must have the following characteristics to be useful


 o Be measurable( in completion and timeframe)


 o Be attainable


 o Be worthwhile


 o Be positive


 As an illustration, then are some of our current objects( this is only a partial list)


 o Develop 2 new positive-expectation trading systems each time


 o Make smaller crimes by enforcing our trading systems each time


 o Achieve a return to maximum draw-down rate of1.51


 o Take 2 weeks' holiday

 each time


 Note that only one of them is about making a plutocrat, and that has a measurable ideal that's relative to draw-down, not absolute( i.e. make 100 per time). 

still, and when you're trying to achieve it, the whole business will be concentrated on meeting

 If you know what you're trying to achieve. your objects and help guide you to only pay attention to the effects you want to achieve with your limited time and coffers. 

This will also give you a way to measure the success and progress of your trading. Generally, dealers with well-defined objects will be much more successful than those that don't have-defined pretensions.


 Be harmonious and disciplined


 To realize the full eventuality of your trading systems, it's critical that you take every trading entry, acclimate every stop, and close out every trade as and when your system says you should do. 

This takes extreme confidence in your trading systems, good robust dependable technology, and the internal discipline to stick to your trading plan whatever happens( assuming it's complete).

 An underpinning supposition about being harmonious and disciplined is that you have a pre-defined plan for every situation you may face in your trading so that you know how you're defining what being harmonious is. Your plan needs to include at least the following particulars


 o All your trading rules for entering, adding to, and exiting positions


 o What you'll do if your trading computer, internet connection, broker, power, telephone

etc. fails


 o What you'll do if you're unfit to trade


 o What you'll do if you lose X of your account


 o What you'll do if all the requests are closed and you can not exit your positions


 Unless you write the answers down to all these issues, you can not be harmonious and chastened in your approach to trading and if you lose a plutocrat you won't know whether it's because you did not follow your plan. After all, 

your plan is deficient, because your systems don't work, or simply because you're going through a losing period.


 Let gains run


 This simple rule is the key to being a successful dealer. It's three simple words that are veritably hard to apply. 

When we get a profitable trade our natural fear of losing the unrealized cash kicks in and we truly want to close it out now and take the plutocrat. 

utmost trading consists of long ages of small winners and disasters followed by many huge winners that make the difference between overall profitability and simply breaking indeed or losing due to trading costs( commissions, spread, and slippage).


 We can let the huge winners come just that- huge- that determines how we will perform overall during the time. 

The key to letting winners run is to have running stops that are outside the diurnal noise of the request so that they aren't tight enough to get stopped out during' normal' trading. 

This means being prepared to give up a significant portion of a winning trade's open profit and this is the thing that makes this so hard to apply. We

should be adding to a winner and widening stops rather than working out how tight our stops can be to capture maximum profit. 

The trade has formerly shown you that it intends to be a winner, and the chances are it's a low-threat idea to add to the position now rather than strangle it with stops that are too tight.


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