3 golden rules of trading

One should never follow anyone’s forex trading strategy blindly. Rather build your own trading plan.

Thanks for the advice, I just need it, because I recently started doing this.

These tips are really nice and they are easy to follow because of the fact that they are precise and accurate. It is not something like ‘don’t let your emotions control your decisions’. Most of all I support the idea of trading journal. The only way how you can track down your past mistakes is to write down all of your decisions and the factors which made you make these decisions. Analysing your strategy is the cornerstone of the further development and improvement. Forex market is like wildlife, where only fiitest survive and the fittest are those who adapt to the current situation. As we all know, market is always changing and all of the trading strategies have a kind of expirtion date when they just stop working and they can only bring you the losses. Every deal should be planned and recorded so that you’ll know where you made the mistake in the past in order to avoid it from your decision making routine.

Good luck for future!. One tip from me will be to focus on enhancing your trading knowledge.

These tips a very nice. I bet they will come in useful for many beginners.
The temtation to give up your strategy without any thorough analysis of the past failed deals can be really strong. Especially, if the trading strategy was taken from the internet and you cannot fully understand it and implement in the most efficient way. Every strategy needs to be understood and simply making the deals will do you no good. Surely, there is lots of trash in trading community concerning the methodology of making the deals, but I believe that a trader should understand why the strategy doesn’t work before switching to new trading ideas.
As for the trading journal, it is one of the greatest tools which help traders modify their trading strategies and make the better. All of your thoughts before making a deal should be written somewhere because this will make it possible to analyze the pas deals and see whether the whole workflow is built correctly or it needs to be improved. However, putting down the criteria for making a deal requires lots of discipline from a trader. In most of the cases traders are carried away by the whole atmosphere of trading which is about making profits as fast as it is possible.
Being consistent is easier to be said than to be done. Everyone wants to be consistent on the market but many traders fail just because of their psychology.

Any trading book recommendation for enhancing knowledge?

“How to Start a Trading Business with $500” by Heikin Ashi Trader is a good one.

Thank you for replying!

making a loss or profit its not big deal.

nope, this is the only thing that is a big deal in trading.

not that i am good at it, but anyways…

Trading for dummies is a good book for newbies. There are some good youtube channels you can check out too.

These tips are really effective if they are implemented on practice.
I believe that the most important thing in trading is consistency. I do quite agree with the fact that occasional wins or losses are not really important. THe most important thing is your approach and perception of trading. I do really think that a trader should have some idea before making the deals. And these ideas should be written down in trading journal in order to track down the flow of your thoughts and find the possible drawbacks in your trading strategy. How can you know your precise mistakes, if you forget about your thoughts immediately after the deal is closed? That is why trading journal is the only way for you to improve your trading.

These rules can be really effective in trading. I would also add a couple of things.
Firstly, it is all about your trading strategy. It should contain precise and accurate criteria for taking this or that decision. In most of the cases the trading strategies are rather vague which creates a room for psychological factor to take over common sense. A trade should aspire to make their trading strategy precise in order to stay away from emotions which may affect the trading decisions and trading results. In this case a trader will deal with the facts and objective reality instead of opinions and assumptions. I know that it is easier to be said than to be done, but still we should do our best to make our trading strategy as efficient as it is possible.
Secondly, I am strongly convinced that the traders should pay attention to the fundamental aspects of the market. I know that the biggest part of traders don’t use fundamental analysis in their trading and I am not an exception but it is still essential to be aware of what is happening in the world at the current moment. Such a knowledge will definetely facilitate making right trading decisions and explain certain aprice movements.
Thirdly, a trader should constantly refresh their knowledge and skills about the market. It is an open secret that the markets are always developing at a very high rate. So, in order to be a success a trader needs to adapt their trading strategy to the current market, otherwise, their knowledge will become outdated and useless.

Thank you for your advice. It helps a lot to the new traders like me.

Maintaining a trading journal is the best advice. If you track your traders consistently and backtest, then you will see your growth.

For me the three rules are:
Have proper knowledge
Stay dedicated
Do not overtrade

The rules mentioned are indeed helpful but I would like to add more to these @nightwaanderer.

One must have a trading strategy but along with this also have a backup plan to avoid heavy losses or the strategy made should not involve high risk.

Maintaining Trading Journal is the best way to track your trading. But, one must also learn from the mistakes he has made so as not to repeat the same next time.

Thanks for your rules, i think being consistent is one of the most underrated rule, people are too quick to look for big profit instead of trying to be consistent.

My 3 rules out of many:

  1. Do not rely, expect on economic news and historical chart identical repetitions.
  2. Always use use bigger timeframes.
  3. Do ones trading analysis, always look what happened for improvements.

Take calculated risks & Don’t be greedy is also important

Don’t be bad at math when taking calculated risks though! :joy:
I’m just kidding. :smiley:
That said, I do think it is important not to be greedy. Have common sense.