Here are the rules from various sources., thoughts, the views of real professionals.
1. Treat losses as payment for education.
2. Never enter the market, if losses exceed the established limit.
3. It is very bad to miss a trading signal – big profits can be missed. Every trading signal must be used. There is protection against losses – stop order, but against a missed opportunity – No.
4. It is necessary to correctly and always place a trade stop order inside.
5. The trading system must always be developed and adapted for a specific personality.
6. Any trading system has a period of a series of losses.
7. Focus on the trading process, not on the result.
8. The most dubious entry into the market can give a very significant profit.
9. Using a trading system allows you to get rid of the manifestation of emotions.
10. Correct order:
· -Psychology
· -Management of risks
· -market analysis
11. Think over many scenarios for the development of events and be ready for their implementation.
12. The main focus in a short game with a short stop order – find the best entry point.
13. One of my favorite figures – price wandering from low to high during a cyclical period.
14. Basic rule: Don't try to make a profit in bad trade., try to get out with the least losses.
15. In business, where money is lost quickly, they can be returned just as quickly.
16. Before picking up the phone, slowly counting to ten – think lately.
17. I'm just a man , and therefore I make mistakes. A task – do them less often, recognize them faster and correct them immediately.
18. Target – be profitable every day.
19. Most important skill – ability to perceive patterns in the market.
20. Discipline and concentration.
21. Trading is like playing a musical instrument: workout, training and you can never achieve perfection, but every time it turns out better than the last.
22. Specialization: one market, one figure.
23. If you are asking for an opinion on the future movement of the market – it's time to quit the game.
24. Critical error – think, that others know something more than you and avoid entering the market in positions “it looks too good, to be true”.
25. Think soberly, when others panic.
26. Stay in profit as long as possible.
27. Stop orders. Initial less, than shopping moving.
28. Recognize and control your own greed in time.
29. Past achievements do not guarantee future success.
30. If you don't know how to lose money – you have nothing to do in business, especially in dealing.
31. Positive motivation produces positive results.
32. Temporary stop. Exiting the market after some time, if prices don't go in the right direction.
33. The market currently has fewer breakouts.
34. Central banks play against trends. If you have highlighted a trend, means, maybe it will end soon.
35. Major players, including central banks, act imperceptibly, secretly. If you see a major movement against you, and the reason is unclear – get out of the market, the reason will be announced later.
36. Currency movements often start in Europe.
37. Less 5 % capital and mandatory stop order. First determine, where to get off, and then – where to enter. Unsure – come out. Healthy sleep – loss and profit orders. You only start thinking after exiting the market. Profit accumulates slowly, losses kill instantly.
38. Using other people's opinions and thoughts – a straight path to defeat. If you sum up your style and someone else's, you add up the negative sides of both styles and reduce the positives.
39. No one can rule the market. Cases happen (interventions), but do not last long.
40. Useful idea – graphically reflect the state of the account, for example, as weekly bars.
41. It's better to trade in a small market (better AUD than CHF).
42. Technical analysis tells the past, but cannot determine the future. But technical analysis can tell a lot..
43. Fake breakout – best profit / risk ratio.
44. First, define the target and stop, and only then enter the market.
45. Gross mistake- personalization of the market.
46. For a successful long-term game, it is very important to study trends in the economies of countries.
47. Place your stop at the point, the achievement of which clearly signals a trend change.
48. Trading system – tool, and there is no point in obeying her blindly
49. Write down all thoughts, plans, results, the reasons. Write everything down, what are you doing.
50. It is very important to expect the unexpected., expect extremes. The principle is simple – “did not have – will”.
51. A good system should keep you on trend.
52. With absence “guide” the information market tends to be a random process. (Conveniently trade currencies, for which there is little information).
53. To be successful, you must be one step ahead of everyone.
54. Focusing on short-term results is a mistake.
55. To be a good trader, sometimes you need to go against the price movement.
56. Never open too many positions.
57. Mental stop, after breaking through which the idea of the game changes.
58. risk management – the most important thing in trade.
59. Setting a stop order for an account. (Account management, how prices).
60. Trading rules:
-do not average losing positions
-decrease position in a losing cycle
-increase your position during the winning period
-never trade in a situation, when I lost control.
-reduce or close positions before the messages are released (this is a gamble, not trade)
-in a lost position, exit immediately, there is nothing better, than a fresh start
-play defense, not from the offensive
-constantly analyze unprofitable positions
-don't forget to analyze winning positions, if they start going backwards – plan an exit point
-don't be a hero
-do not be an egoist, always doubt yourself and your abilities
-do not think, that you have already become the best, next moment you will “dead man”.
61. Big money is made by reversing the market.
62. Don't try to catch the very top or the bottom – it will ruin you.
63. Good money can be obtained, standing in the middle of a powerful trend (ie. wait, when the trend appears).
64. Trend happens 15% time, the rest of the time the market wanders.
65. You can trade successfully even with a small account.
66. It is possible to build a trading system.
67. Prices move first, fundamental data comes later.
68. Don't focus on the process “make money”, focus on keeping that, what is.
69. Discipline, plan, homework.
70. Set your stop as soon as you enter the market.
71. Constant review of the rules – evolutionary process.
72. Your gut is very important.. But it is very important to feel the difference between illusion and gut..
73. Psychology – this is a car, and analysis – road map.
74. Everyone gets something, what deserves.
75. Expressing an opinion, you try to follow this opinion.
76. All the winners want to win, all losers love to lose.
77. The market is ineffective, so pay great attention to the theory of probability.
78. The market is changing, but people don't change.
79. The law of large numbers works for us. Explore large arrays from a probabilistic point of view. Be a statistician.
80. Reduce risks by diversification.
-trading in multiple markets
-trade in various trading systems
81. Three signals (traffic light) trading system:
– green – we perceive all signals
-yellow – we begin to liquidate positions and do not open new ones
-Red – immediately, automatically close all positions
82. Similarity of markets in the same risk management.
83. The greater your risk rate, the more uncertain the result.
84. There are no rich people, taking small profits.
85. Two basic rules:
If you don't risk it – you do not win.
If you lose all your capital – you cannot risk.
86. Use standard deviation.
87. The turn to successful trading occurs :
When you separate your ego from the money making process
When you are able to perceive mistakes and accept losses
Your winnings will always wait for you (if you save money)
88. If you regularly, make money every month, nothing bad can happen to you.
89. Never “freeze”, when you are attacked (step or retreat)
90. Never risk family safety.
91. Before opening a position, ask yourself: “I really want it?”
92. After a big profit (winning period) play with minimum position. Big gains are followed by big losses.
93. “Fishing at the very bottom” – the most illustrative example of gambling.
94. Start over every year. January 1 – I am poor.
95. If the market tries to beat in a certain direction, this, maybe, means, that he will continue to go in this direction. (If you manage to buy low, there is a possibility, that prices will go even lower). What if a stop with a reversal???
96. IN 95% cases, if you play against “hysteria”, you win. If you “knocked out” – try to enter the market again (use the market state channel!)
97. That, What do you know, others do not necessarily know. (That, what did I see in the graphs, not necessarily, what others see).
98. Anything can happen in the market, because most of the participants do not know and do not understand, what are they doing.
99. If you don't know, what to do – it's better not to do anything. Better wait, when the situation starts to clear up (Does not apply to risk management, do not you know, what to do – get out of the market).
100. Few buy at the very bottom, far buys the majority, charts look good. In the end they buy because, that everyone has been doing this for a long time.
101. The market is always right subjectively ( really strong) and not right objectively ( versus thinking people).
102. “Make a certain amount” – this is a very harmful and dangerous target in the market.
103. Losses are kept because, what do they think , that they won't be big and won't grow. Profits are taken early because, what are they afraid of, that it will decrease. Instead of this trader should be afraid of big losses and hope for big profits.
104. Serious error of presenting profit or loss as tangible items.
105. To succeed, Listen, listen to others and do not open your mouth yourself.
106. scalping. Take so much from the market, as much as you can.
107. Pareto principle (80:20)
108. Make mistakes, but don't do them in a row.
109. As with any job, it is important to hold out for the first time., it will be easier further.
110. Patience separates a winner from a loser.
111. Combined stop. After passing the level, exit at the best price. (For more sophisticated money management).
112. You need to get used to success too.
113. Be disciplined and do your homework. Maybe, you will not become rich, but $300 a day you can do, for a year it 75000 $.
114. One lot. (That's enough).
115. Risk controls:
Always know for sure, where are you.
Don't concentrate all your money on one big game or correlation trade.
Understand the current profit-risk ratio, and not at the time of entry or intended exit.
116. FOREX market – very psychological market.
117. Pyramids towards profit.
118. Do not enter and exit all positions at once.
119. Avoid the urge to be always right.
120. Splitting up entry and exit allows for better entry and exit performance.
121. Analyze market response to significant fundamental news.
122. The basis of success – positive mathematical expectation.
123. The basis of a trading system should be statistics.
124. Required “rude” statistical tool and strong technique.
125. The tool should not respond to outliers in the statistical series.
126. Try to think about everything, what might be wrong on your system, and look for anything suspicious.
127. A person seeks to organize data and often sees a certain structure in random data.
128. Buy on a bounce – dubious occupation.
129. Avoid things, which give you comfort, usually this “false comfort”.
130. Building a system based on current data – very difficult, but a very important task.
131. Lovers go broke, taking big losses, professionals – taking a small profit.
132. The problem is, that it is not profit that is maximized, and the frequency of winning positions. Increasing the number of winning positions, the player often plays against himself.
133. Win / Loss Ratio – least important ratio in the trading system.
134. People look at current prices as “normal”, but for any shift in prices – as a deviation from the normal state.
135. An emerging trend is often viewed as a deviation and played against.
136. Better play those, who cannot afford to lose money.
137. If you can't bring yourself to do the right thing (for example, low loss output), hammer a strict rule into the trading system.
138. Bigger profits can have a stronger negative impact on the psyche., than big losses. After big or long profits, terrible failures very often happen.. Losing makes you stronger, victories relax.
139. Decide for yourself, how do you measure your success, in money or something else. To win, measure in money.
140. Do market research in times of loss. During this period, appears
good motivation to improve yourself.
141. Most people trade worse, than a random game machine.
142. The limit is set for everything and it is obligatory.
143. Foreign trading systems are good for getting ideas while building your own..
144. The market is not accidental, but also not rational. Irrational behavior makes the price chart noisy.
145. Classic figures are almost useless.
146. The market operates more with psychology, than fundamental data.
147. Killing pure fundamentalists.
148. Graphs reflect human psychology.
149. The human mind is stronger than any computer in analyzing price charts..
150. Loss period – best time to study. Distracted from the gloomy. Do something positive (Not everything is so bad).
151. Three stages in the hierarchy:
– Capital protection.
– Stability.
– (1 + 2) = Big profit.
152. It is important to define the trend line correctly.
153. Figure “Key” – actions of professionals.
154. Positive MO.
155. A bad system cannot be won in the long run.. But using money management, you can get a short-term large profit.
156. We become that, what we believe.
157. Man is capable of performing miracles. A person can swim the English Channel three times, drink a hundred beers, walking barefoot on hot coals,a person can learn more than thirty languages, become an olympic boxing champion, invent a television or a bicycle, become a general of the GRU or a billionaire. It's all up to us. Who wants, he can. Main – want something, and then it all depends only on the training.
But if you train your memory, muscles, psyche regularly, then… nothing of your idea will work. Exercise regularity is important, but by itself it does not solve anything. One weirdo trained every day. Once a day he lifted the iron. Training continued regularly for ten years – his muscles have not increased.
Success only comes then, when every workout (memory, muscles, psyche, willpower, persistence) brings a person to the brink of his capabilities. When the end of the workout turns into torture. When a person screams in pain. Exercise is only useful then, when she brings a person to the brink of his capabilities, and he knows this line for sure: i can jump up on 2 meters, I can push up off the floor 153 Times, I can remember two pages of foreign text at a time. And every new workout is useful only then, when she tries to break her own yesterday's record: I'll die, but I will squeeze out 154 Times.
We are being taken to train the future Olympic champions. Here they are, fifteen year old boxers, five year old gymnasts, three year old swimmers. See the look on their faces. Wait for the very last moment of your training day, when a small child's face has a wicked determination to break his own yesterday's record. Look at them! Someday they'll bring Olympic gold. See this face! How much tension is in it. How much flour! This is the road to fame. This is the path to success! Work only at the limit of your capabilities. Working on the brink of failure. The champion becomes the one, Who knows, that the bar will crush him, but pushes her up. Only he wins in this life, who defeated himself. Who conquered their fear, your laziness, your insecurity.
