List of personal rules for trading that makes U successful

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

  1. Jym


    My #1 rule is to accept that I'm going to be wrong 20 to 30% of the time and to get out with as small of a loss as possible.

    And some days the market will just seem to be against you even if you're following your strategies that normally work.
    I like having a hard loss of the day set in place then I'm done for the day if i hit that point.

    I still have a long long way to go but I still manage to make money since I limit my losses.
    #21     Aug 28, 2009


    Thanks for the feedback. I appreciate it.

    I am purely a technical trader but I do not use indicators. My charts are very naked.

    It is always a battle with me between being mechanical and having some discretion.

    I can quantify all my setups but sometimes have to break the rules.

    I made the Fib comment out of frustration from all the hype out there.

    There are tools that can help but they are often presented without the acknowledgment that there needs to also be an understanding of the raw structure of price action.
    #22     Aug 28, 2009
  3. Redneck


    Honesty & objectivity are of utmost importance – lose your emotions

    Always be open, but trust no one except yourself – and learn to trust yourself completely

    To hell with what anyone thinks, including yourself – having an opinion will break your account – no one knows what the mkt will do, or the best way for you to trade – anyhow

    Never matters what you think – only what you do

    Accept price will do what price will do - always

    Always… observe – anticipate – react

    Never… hope – wish – pray – woulda – coulda – shoulda – what if – if only

    Become your harshest critic, staunchest ally, and most objective observer

    Confidence will make you money – ego will break you

    Learn to embrace and live on the hard right edge – become friends with it

    Focus – focus – focus…. and be prepared to work your ass off

    Have sufficient capitalization – scared money never wins – and a broke trader is useless

    A trader is never right or wrong – just profitable or broke

    Becoming profitable will take longer than you think

    Decide how you will trade and stick to it

    Use multiple time frames

    Draw straight lines

    Follow price, never fight it

    Learn to read the emotion in a chart

    Learn the difference between real price movement and gamesmanship

    Identify exactly where you are wrong in a trade

    Cut losers religiously – and without hesitation or thinking

    Accept you will have losers

    Your eyes are the best indicator ever devised for trading – if you trust them

    Learn to sit on your hands – both when you’re in and out – of the mkt

    Simpler is always infinitely better

    Know when economic reports / major announcements are due out – be flat before then – never anticipate how they will be received – simply react to price

    Create both a trading plan and a business plan

    Give something back the best way you can – when you’re able

    Trading is a journey - not a destination

    Trading is only about making money – ever

    None of what you read here will ever matter – unless you make it your own


    #23     Aug 28, 2009
    tallgeeseTrader and PennySnatch like this.
  4. 1. The market is always right

    2. If in doubt, refer to rule #1

    3. Price action is all that matters
    #24     Aug 28, 2009
    persistence likes this.
  5. NoDoji


    These are two things I've found the most difficult to overcome and also very costly: changing the plan because of thinking about a trade after it's on, and chasing the trade that I was ready to put on but hesitated, thereby missing the entry price that made the trade a good one in the first place.

    When I miss an entry, my friend always tells me, "Don't worry about it, another boat will come along."

    This is what I strive to be, a purely technical trader. Tell me how long it takes to get "yourself" out of your own way and trade purely technical. Please leave me with a sense of hope this weekend by not telling me 5 years or 10,000 hours of screen time.

    #25     Aug 28, 2009
    777 likes this.
  6. Redneck



    #26     Aug 28, 2009
  7. My rules to trade:

    * Don't trade, invest.
    * Don't hold overvalued stocks/ETFs.
    * Get out when the crowd is too optimistic.
    * Try not to use leverage, and if I do, use protection against blowup (in my case leveraged ETFs that track the DAILY movement).
    * Use an income strategy.
    #27     Aug 28, 2009
  8. Best rule ever, plus know your exit before entry (support and resistance within your time frame).
    #28     Aug 28, 2009
  9. If you trade stocks intraday, always keep an eye on the futures(ES)/Spy/Market breath/Tick, and think about convergence /divergence between your stocks and the market.
    #29     Aug 28, 2009
  10. BSAM


    Trade what you see, not what you think.

    Take your stops.
    #30     Aug 28, 2009