For most people who are interested in becoming a successful trader, it’s enough to spend a few minutes on the Internet looking at teachings such as “plan your trades, trade your plans” and “try to minimize losses”, and novices But often just want to know how to make quick money.
Anyone who wants to trade successfully needs to understand the importance of a set of trading rules and strictly enforce these rules in various trading accounts of different sizes. Each rule is important, and when they are used together, they are even more powerful. Following the rules to trade can greatly increase its odds of winning in the market.
Principle 1: Stick to the trading plan
A trading plan is a set of written rules used to describe Successful Traders Strategies, exit, and fund management criteria. Although it takes a bit of time, this step is a must for successful trader’s strategies. Using the power of today’s technology, it is not difficult to test trading strategies before investing real money. Using historical data to test trading ideas, successful traders strategies can make judgments on whether a trading plan is feasible. Once the test shows good results, the plan is executed. The key to the current problem is to strictly implement the plan. Any unplanned transaction, even if it is profitable, is a bad transaction.
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Principle 2: Treat trading as a business
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Anyone who wants to succeed in trading must treat trading as a full-time or part-time business, not a hobby or work. If you treat it as a hobby and don’t make a real commitment to learning, the transaction will be expensive. As a job, trading can be frustrating because you cannot get a regular salary. And any business will incur expenses, losses, taxes, uncertainty, pressure, and risks. successful traders strategies, you are the “boss”. You must do research and make strategic planning to tap the potential of your business.
Principle 3 Use technology to increase bargaining chips
Using technology and keeping pace with the latest technology can make transactions interesting and fruitful. Trading is a competitive business, and your counterparty may be fully enjoying the benefits of high technology. The charting platform allows traders to have infinite ways to observe and analyze the market. Using mobile phones to surf the Internet allows us to know the latest changes in the market in real-time anywhere. Even some technologies that we take for granted, such as high-speed internet connections, can greatly improve transaction performance.
Principle 4 Protect transaction capital
Saving money to set up a trading account takes a long time and a lot of effort. This kind of preparation is even more difficult (or even impossible) to start over. There is no equal sign between protecting your trading capital and not losing money. All traders lose money, which is part of the business. Protecting capital is not to take unnecessary risks and go all out to protect your “trading business.”
Principle 5 Be a market student
Think of it as a continuing education course. Traders should concentrate on learning new things every day. Understanding the market, including the complicated things in it, is a continuous and lifelong learning process. World politics, events, economy and even weather will all have an impact on the market. The market environment is dynamic. The more deeply the traders understand the past and current market conditions, the more prepared they will be when facing the future market.
Principle 6 Only take risks
Before a trader invests real money, he must first confirm that the money in the account can be sacrificed. If not, then the trader should continue to deposit money until this level is reached. The money in the trading account should not be the child’s future college tuition or the money to repay the mortgage. Traders can never have the idea of ”borrowing money” from these important expenses. Be prepared to lose all the money in your account. Losing money is painful enough. If you lose money that should not be used to take risks, then the pain will be even more serious.
Principle 7 Successful Traders Strategies are based on facts
It pays to take the time to build a good trading strategy. The various easy-to-sound trading methods flooding the Internet may be tempting, but facts (not emotions or desires) are the real inspiration for establishing a trading plan. Calm traders have more time to browse various information online. Imagine this: if you want to start a new career, you probably need to go to a university to study for a year or two, obtain qualifications to apply for a position. It takes almost time to learn and research to do transactions.
Principle 8 always set stop loss
The stop loss level is a trader’s pre-set, acceptable loss in every transaction. The stop loss can be the amount or the proportion of funds, either of which is to control the risk of the trader. Setting a stop loss can also exclude some perceptual components from the transaction. Ignoring the stop loss, even if it is ultimately profitable, is bad behavior. It is still a good practice to follow the trading principles and exit at the stop loss position. It is unrealistic for all transactions to exit with profit.
Principle 9 Know when to terminate the transaction
There are two reasons for stopping trading: an invalid trading plan and a useless trader. The loss of an invalid trading plan is far greater than the result of the historical inspection. It may be that the market has changed, the inherent volatility of a certain trading product has changed, or it is just that the performance of the trading plan is not as good as expected. At this time, you need to re-evaluate the trading plan, modify the plan, or even start a new plan. A trader who cannot execute a trading plan is useless. External pressure, personal problems, health problems, and bad habits can all cause this problem. If a trader is not in the state, he should rest and wait until the state is restored and then come back.
look to the future More Important For A Successful Traders Strategies
When trading, you must have a small heart in your chest. The profit and loss of a single transaction are normal, and the cumulative profit is a successful transaction. Once a trader can treat profit and loss with peace of mind, the influence of emotion on trading will be reduced. Focusing on the future means setting reasonable goals. If the trading account is not large, then don’t expect too high a return. Be rational, how much money you have, and how much you do.