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
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:
- Do not rely, expect on economic news and historical chart identical repetitions.
- Always use use bigger timeframes.
- 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!
I’m just kidding.
That said, I do think it is important not to be greedy. Have common sense.
All traders decide by themselves which rules they comply with. In my opinion, the golden rules of trading are never rushing, always think twice before doing something on the market and always try to learn as much as you can daily. If you won’t find something new out for you daily, you won’t have any progress and you will stay at one place for a very long time. Rushing can easily lead you to devstatting of your deposit which is considered to be the wors scenario on the market. So, everybody creates his/her own rules, but the best option is to listen to rules of professional traders and try to comply with them.
Not sure about Golden maybe Bronze
Be consistent, dedicated and patient.
According to me, three golden rules are:
1 Manage your forex capital wisely
2 Strengthen your trading knowledge
3 Use common sense
Hm, it’s kinda difficult to me to allocate only 3 rules, so… ok.
- Never afraid trying and doing something on the market. It means that rookies sometimes are scared of opening positions just because they are lack of confidence. Never be lack of confidence and always do what you wanna do. If you analysed everything thoroughly, then never doubt.
- Comply with risk management. If you will comply with risk management practice, so, you have to create a particular profit/loss ratio, which will give you an advantage in particular position, for example, 3:1 is considered to be the optimal size.
- Never hurry. This is quite simple. It’s better to spend hours on analysing, rather than open 10 positions within the same time. Trading loves those ones who use wise approach.
- Always start with demo account practice
- Take time to learn and do not rush the process
- Pay at most attention to risk management and stop chasing profits.
Other than the ones you mentioned, I believe that these are of value:
- Greed has no place in the forex market; it always makes one lose.
- Education is mandatory; we cannot become a millionaire right now without knowledge.
- One must follow proper risk management strategies.
It’s such a great advice! Actually, there is nothing like easy strategy in Forex, so if you don’t have enough confidence then surely you’ll lose your determinations so quickly!
Thank you for this informative post, friend. One point that I would like to mention is that, in my experience, it is more important to prioritise on how to reduce risk, than to chase profits.
- Don’t change your strategy aimlessly unless you need to do so.
- Maintain a trading journal
- Be consistent
Definitely, these three golden rules are worth paying attention to and should be followed by all traders.
There are many rules that should be followed for becoming a successful forex trader. But all of them can be compressed to 3 points for me.
- Risk management is the real edge.
- The market treats everyone the same. So just respect the trend.
- Never trade when you are emotional.
Thanks for these rules! Beginners usually jump from one strategy to another in the hope to find the right one. And in this process, beginners waste their time and money. Something that beginners miss is a trading journal, which they do not make until someone recommends them or after suffering a series of failures. Consistency is one of the biggest reasons for failure. Along with these three rules that you have mentioned, one could also add discipline and control over emotions because they play an important role in trading.