good and useful exposure, but very difficult to implement.
one of the hardest things is related to emotions. need to practice continuously and learn from other experienced traders.
Topic: 20 Rules Followed by Professional Traders - page 2. (Read 305 times)
These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.
Yes because an experienced trader have gone pass this level of reading and reading because he realizes that it is high time he went into the real trading, which is building the way he or she wants to handle the challenges of the market and not just reading people's assumed ideas and getting scared.
seriously you have listed almost all and when we can discipline ourself to follow this rule there is no way we would not become a professional traders. In trading we need to be different from what we have been told. You need to learn what works for you in other to develop your strategy for success.
These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.
seriously you have listed almost all and when we can discipline ourself to follow this rule there is no way we would not become a professional traders. In trading we need to be different from what we have been told. You need to learn what works for you in other to develop your strategy for success.
These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.
Im not really an enthusiast of reading things we should follow as a trader because we have different preferences on that. Let ourselves learned what are the best thing we can do as our experienced will lead us to be a professional trader someday. No need to literally follows what articles or anyone says because we know ourselves but those pointers above should be taken as reference.
Anyways, you can just easily shared the link without copying the whole content. You didn't even spend a time to generalized your thoughts about the article. Basically just avoiding the plagiarism part.
Anyways, you can just easily shared the link without copying the whole content. You didn't even spend a time to generalized your thoughts about the article. Basically just avoiding the plagiarism part.
Certainly! I agree with you. I myself learned to trade by making plenty of mistakes acquiring my own experience but looking behind I would rather not to make many mistakes because they cost much enough.
Sure, I have got it that I should not copy the whole original text. That is very kind of you that you hinted me about it.
All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp
Im not really an enthusiast of reading things we should follow as a trader because we have different preferences on that. Let ourselves learned what are the best thing we can do as our experienced will lead us to be a professional trader someday. No need to literally follows what articles or anyone says because we know ourselves but those pointers above should be taken as reference.
Anyways, you can just easily shared the link without copying the whole content. You didn't even spend a time to generalized your thoughts about the article. Basically just avoiding the plagiarism part.
Market News and Emotions play a very important role in Trading and smart developer
never avoid this things
never avoid this things
Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.
This is important to every trader, especially those losing money. When you lose money in trade, you should understand that you are not alone but it was a call for you to learn more and build on what you have learnt until a time you have a mastery of your strategy.
Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.
Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.
So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.
Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.
Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!
Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.
Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.
Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.
Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.
Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.
Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.
Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.
Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.
Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.
Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.
Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.
Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.
Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.
Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.
Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.
Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.
Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.
Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.
Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.
The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.
All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp
Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.
So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.
Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.
Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!
Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.
Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.
Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.
Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.
Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.
Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.
Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.
Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.
Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.
Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.
Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.
Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.
Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.
Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.
Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.
Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.
Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.
Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.
Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.
The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.
All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp
Jump to: