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Trading rules...

Discussion in 'General Forex Talk' started by D-Trader, Sep 12, 2010.

  1. D-Trader

    D-Trader Private, 1st Class

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    Hi,

    Every successful trader makes some trading rules, which leeds him to success. I am seeking for some good rules( after my downfall from 1000% to 0). Every non repeated rule will be appreciated. Only one rule which is the key of rules is "Don't break your rules".

    Thanks.
     
  2. Pharaoh

    Pharaoh Colonel

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    Rule 1. Only risk a small percentage of your account on any one trade.

    Rule 2. Limit risk on related pairs (i.e. Don't go long on 5 different xxxUSD pairs at the same time).

    Rule 3. Never extend a stoploss. Stoplosses ONLY move to reduce risk or ensure profits if the price reverses.

    Rule 4. Take a break every now and then. Eat some chocolate. Pet your cat or dog.
     
  3. karlmarx

    karlmarx Recruit

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    1. Preservation of Capital
    2. Disipline

    adopt a trading strategy and stick to it. No matter what. This includes taking a loss when you are wrong. Which is #1 rule, preserve your capital. He who trades and runs away, lives to trade another day.
     
  4. 5of7

    5of7 Representative for TheCollectiveFX

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    Seriously Pharaoh said it:

    "Rule 1. Only risk a small percentage of your account on any one trade."

    If only people really understood the value of that singular piece of advice.
     
  5. D-Trader

    D-Trader Private, 1st Class

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    Thanks Pharaoh, thanks karlmarx, thanks 5of7.

    I made up my mind to trade only one pair at one time and wait for result. If it is positive then look for next opportunity, otherwise break and calculate the reason of loss trade.

    I think it is better one trade at one time.

    D-Trader
     
  6. florentin29

    florentin29 Recruit

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    very real

    hello,
    what you said it is very very valid ... people know this rule but they don't respect .. also myself :(
     
  7. melati untuk

    melati untuk Private

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    and 1 more important think is "Pray"
     
  8. Steven_Smith

    Steven_Smith Private

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    Always remember that demo account and real account are two completely different things. If you are successful with demo account, that doesn't mean you will immediately start taking profits in real trading
     
  9. FrankyW

    FrankyW Private

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    Spend only money that you can afford to spend every day! And you will never blame yourself.
     
  10. RahmanSL

    RahmanSL Major

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    and 1 more important think is "Pray"

    Prayers absolutely don't help, nor does slapping yourself and bashing your head on the wall.

    If your impatience cause you to make some trades which goes against you, and especially if you have also opened too many trades which your account absolutely cannot sustain any significant losses, then be prepared to cut your losses by closing some or most of those bad trades or risk losing your complete account.

    I am still, and have been for the past 11 months or so, a Newbie Trader. Patience to sturdy the charts to get a clear indication of market movements (yes, refer to all the time charts M1, M5, M15, M30, H1, H4, D1, W1, M1) and keeping informed of relevant news...than make one small trade (preferably 0.01 lot) to test actual market movement.
    If that trade goes against you, you now have the option/choice of opening another slightly bigger trade and either close that losing trade or leave that to go into profit before closing it.

    If you have taken the time and really studied market movements before entering a trade, I don't think you can loss money as sooner or later the market price will come back to your entry price.
    Plus, if you make 1 or 2 trades at a time and leave your account with lots of free margin, it would be quite difficult to loss money as you your free margin will ride out any initial losses.

    Frankly, I really don't see how any Trader can loss money carrying out long term trading with plenty of free margin in the account.
     

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