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The three golden rules of trading are-
- Always use a trading plan- It is very necessary to strategize your trading plans aligning with your financial requirements. You need to analyze your risk profile, return expectations, and financial goals to find out the most suitable securities or bonds to invest in.
- Thoroughly study the market- Before investing in any financial instrument, you should learn and understand the market thoroughly. It is essential to analyze the market patterns, prevailing stock prices, and risk factors involved in every stock.
- Risk only what you can afford to lose- You should control your emotions and don’t invest in stocks when you are in a state of excitement, anger, and grief. Investing only that amount that you can afford to lose will not disturb your financial status even if you lose trades.
[Edited for a Forums Violation]
For me, the most important rule in trading is not to rush. Rush in this industry often leads to negative results.
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That’s a great principle to trade by. Don’t rush opening positions, or making an analysis, or closing positions, all of these lead to mistakes.
That is one of the major reasons which lead to losses!
For me, in general, one of the most important rules is not to rush and be attentive. This plays a very important role in trading.
in fact, everyone may have different such aspects, because each trader has his own work experience, his own problems and their solutions
I completely agree with the author.
- The choice of strategy is very important. If you test the strategy well, you will get confidence. Good confidence reduces mistakes.
- Therefore, the trade journal is important. It helps to test the chosen strategy. And when you see your strengths, it again increases confidence.
- Trade like a robot. Because the first 2 points give you the confidence to do this.
How do you try to be calm and composed if you feel some chaos in trading?
@john571 Frankly speaking, I have accepted trading how it is- stressful, draining, and chaotic but full of opportunities. While making profits is not easy, we can start by focusing on risking properly so that we don’t do more than we can afford to lose. Plus, whenever I make a bad trade, it is never another trade that I make to recover the losses. But take a break to analyze what I could have done to avoid the loss. That’s how it is going for me.
I personally think that there are a few more important things (maybe 5 or so golden rules) but you made good points and all of those are extremely important.
Have to agree with this, great post but emotions play a big factor
It does but one should understand not to get swayed by emotions as it can ruin your trading.
confidence should be in your every action, if this does not happen, then you need to learn more and gain experience
I don’t quite agree with the first tip that you gave. There is lots of trash on the internet and many of trading strategies which are offered especially to the newbies just don’t work at all. So, the faster you get rid of them, the less time you spend on nothing.
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Well explained buddy!
- Invest in solid forex education.
- You can learn to trade forex successfully.
- Manage your forex capital wisely.
- Manage your investment-per-trade wisely.
- Use common sense.
- Ensure you use risk protection strategies at all times.
Most important!
Based on my trading experience 3 golden rules of trading:
1- Don’t be greedy
2- Control your emotions
3- Use stop-loss
I think everyone has said it.
Three common but important goals which I’d like to call it as 3A’s that I have been following for a long time:
- Always control your emotions
- Always have a proper strategy
- Always use stop loss in your trade
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