8 Simple Rules every trader should follow
// THREAD
// THREAD
Did you ever wonder what is the difference between winners and losers in the long term? Like most people you probably think the answer is education. Then, you read a few more books, some articles and thought that was it. Now you’re the man. Well… guess what? It’s not that
1. Never get emotionally attached
“get to know your instrument”, understand how it reacts to news, which are the technical indicators that work
However,this may lead to some sort of feeling of connection and emotional attachment
That is a bad thing
“get to know your instrument”, understand how it reacts to news, which are the technical indicators that work
However,this may lead to some sort of feeling of connection and emotional attachment
That is a bad thing
Getting emotionally attached can make you lose focus and start seeing trade signals that are not really there or interpret news in the way you had hoped for instead of facing the reality
STAY FOCUSED
STAY FOCUSED
2. Control your emotions
The most important emotions that affect a trader are greed and fear
Greed appears when you are in a winning position
Fear occurs when you are afraid to take any risks and you close your orders by making only a few pennies out of a huge opportunity
The most important emotions that affect a trader are greed and fear
Greed appears when you are in a winning position
Fear occurs when you are afraid to take any risks and you close your orders by making only a few pennies out of a huge opportunity
3. Never insist on a losing position
When you enter a position, you enter because your analysis said so .Still, something may go wrong.
Accept it.
Don’t let the pride to overcome and insist in a losing position
Deal with facts
When you enter a position, you enter because your analysis said so .Still, something may go wrong.
Accept it.
Don’t let the pride to overcome and insist in a losing position
Deal with facts
4. Take breaks when things get hot
There are times when everything goes the other way
Go out, get some fresh air, do something else, forget about the trading for half an hour and try again. If you get the same result, call it off for the day. There is always tomorrow.
There are times when everything goes the other way
Go out, get some fresh air, do something else, forget about the trading for half an hour and try again. If you get the same result, call it off for the day. There is always tomorrow.
5. Keep your plan
Before you started trading you have made a plan, did your homework and your research. Or at least you should have
Trade your plan (can do minor adjustments during hours , but do not change the plan fully )
Before you started trading you have made a plan, did your homework and your research. Or at least you should have
Trade your plan (can do minor adjustments during hours , but do not change the plan fully )
6. Don’t invest heavily in something you don’t understand
If you are not familiar with the risk of trading pharmas or Momos or commodities , DO NOT trade them
know your risk , know what you dont know
If you are not familiar with the risk of trading pharmas or Momos or commodities , DO NOT trade them
know your risk , know what you dont know
7. Don’t invest when there is nothing to invest in
There are trends, and there are periods when the markets are calm & seeking direction
in Technical analysis this is called sideways movements
If you are trading on short frames this is when you go on holiday
Don’t force a trade
There are trends, and there are periods when the markets are calm & seeking direction
in Technical analysis this is called sideways movements
If you are trading on short frames this is when you go on holiday
Don’t force a trade
8. Don’t break the rules
Don’t break the rules
Trade your plan
Don’t break the rules
Trade your plan
Don’t break the rules
Trade your plan
Don’t break the rules
Trade your plan
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THE END
THE END
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