Rules Serving Traders Well for Long

Photo: Wikifx

Here are rules followed by a trader who has been investing for ten years:

1. Self-discipline. Traders should always stick to the strategy that suits them best and control their appetites!
2. A small position size. It allows traders to judge the trend and recover their losses once they get wrong. The first trading should sit at a small position and traders should not add it until they take enough profits.
3. Go with the flow in the medium term. Observe patiently for the entry signals and prices.
4. Don't believe in “buy low and sell high”. Prices have nothing to do with determining a trend.
5. Only the market lasts forever. Traders should exit the market when reaching the stop-loss. Admit the failure and learn from it.
6. Look for simple, useful rules, rather than excessively follow others.

There are some words Id like to share with you:

• Trade on charts
• The chart is a true teacher, which will never lie to you.

Keep learning

To learn is to establish your own strategy so that you are equipped with the skills in managing changes flexibly. In practice, only traders who have lost and are able to learn from failures could succeed.

Put emphasis on the 80/20 rule

It indicates there are 20% of traders making profits while 80% of traders suffering losses. When pursuing goals, many people give up halfway because their efforts do not take effect immediately. However, a long journey as life is, you will make great progress with your efforts as long as you never give up.

Reprinted from Wikifx, the copyright all reserved by the original author.