What Are Your Golden Rules?

Beginner Questions
1

Good evening fellow traders, I am new to trading and therefore I am curious to know what are the golden rules people follow without fail…

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2

Manage your risk, do not trade unless you know exactly how much you are risking. Set the stoploss etc and be prepared to potentially lose.

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3

Interesting question and look forward to seeing other replies to this.

For me, it is sticking to my Risk management and only taking trades with 1:2 RR

When I haven’t stuck to my trading plan, mistakes happen and the mindset suffers!

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4
  1. Always trade with stops
  2. Prepare a detailed plan before each trade (idea, SL, reason to exit)
  3. Use daily max.loss.
  4. Write down all the trades
  5. Trade only well-known setups.

The last, but not the least point requires more attention. As far as I`ve spotted from my trading journal, the most of losing trades and almost all trades causing large loss were “wrong” from the very beginning: they were based not on the strategy rules, but on the idea “it might work like that”. That is why the best way to improve the perfromance is to avoid any trades except those stricktly according to the rules. Of course, sometimes you will see something that could become a new strategy, but you should make a research and test it first. In such cases, I use special backtesting software, like Forex Tester, to check new ideas and find out whether they are profitable or not. The next step is demo testing to find out if it would be comfortable for me to trade it, and only after doing this I will use it for real account trading. This procedure seems to be long, but it saves huge amount of money.

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5

If you are setting the stop-loss, then it means that it will minimize your losses and the capital available to you can be used on another day.

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6

Trading is an Art, not a Rocket Science - Learn everything about trading.
Emotional Discipline - Avoid being too emotional.
Don’t Get Greedy - Greed doesn’t work.
Risk Management - Learn to take risks.
Risk to Reward Ratio - Always trade in 1:2 risks to reward ratio.
5% investment - Avoid risking more than 5% of your investment.

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7

Hey Scotty mine is demo first and trade what I see.

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8

keep learning with great practice , this is the foremost rule in Forex trading , because there is nothing 100% in here , so no way to stop learning in spite of passing a long time.

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9

Mine are…
Take it slow
Learn everything twice
Stay on demo until you know exactly what your doing and making consist profit

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10

Thanks Teejy

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11

for me its never trade without a stoploss, been burnt and it hurts!

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12
  1. Follow the strategy.
  2. You’ll take losses! Manage those losses where profits are contained and gained.
  3. Document my trade with (TP, SL & Buy/Sell Location) - My sentiment & market sentiment (anything news related).
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13

Thanks all - some interesting points here

14

Knowing when then different markets are opening or closing…

15

Yeah that’s important alright!!!

16

dont over trade, dont be emotional, trade what you see, dont FOMO or FOGI

17

Never trade without a plan - both entry and exit! And follow your plan because what’s the point in making one if you won’t follow it lol

18

Good information here J C

19

dont get angry when you loose a trade and take immediatly the oposite position to get your loss back-(revanche trading)-90% of such trades are also looser

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20

Buy Low and Sell High

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