Grey1
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There are rules in market that seasoned traders don’t not break . These rules are simple
and we all know about them but only few people stick to them .
The first rule of trading is stop loss. A trader must know when to stop . This could be a money management stop or a TA stop . I use the second one for variety of reasons.
A stop loss is not negotiable and must not be broken under any circumstance. I don’t break this important rule . I cannot afford to break the rule. Once I break this important rule I might as well pack it in and work for some one else. My destiny is in my own hand . Either stick to the rule or pack it in . We have already discussed in details over the years on this BB where to put the stop so I wont go over it again
The second rule of trading is SOFTWARE POWER . you need some software power to assist you in this game. This is 21St century trading and your opponents all have software power. YOU need that too .
The third rule of trading is letting your profit run . This is very difficult and most traders close position too quick . This could be the root of people losing . The nearest I have come to a crystal ball is exhaustion engine both on stock and the market . Learn how to use it . It can be the between success and failure
The forth rule of trading is acknowledging what phase market is going through .. market trends 230-430 PM 730-900 PM and oscillates in between ( times are approximations ) . when it oscillates we use the strategy 3 when it trends use your own trend following strategy . A good trader can tell when market is trending or oscillating
The fifth rule of trading is a TOP DOWN approach . before opening a position you MUST ( this is not negotiable ) know where market is heading and then move to stock ..
MARKET FIRST STOCK SECOND .
The sixth rule of trading is Risk management. You must learn this . You cannot ignore this . It is not all about entry or exit . I bet if I gave you my vwap engine you would lose if you ignored risk management.
Learn about ATR and how you position size yourself according the stock’s Volatility. I have outlined that in jerry’s thread some where.
The seventh rule of trading is realising this is not a game for second rated traders. Learn all above or market gets ya.
The trading game is really simple . You have no idea how simple it is but it needs education. Correct education . some of you been trading for 5 years now. 5 years is a long time but I bet with you I can make a trader out of the worse of you in 24 hours if you sat next to me and watching me trade. This is called Education . Education does not come with coaches. Most coaches are like vampire and holy water. Ask them to trade live their own strategy and it is as if you have given them the holy water .
I insist trader not to give up on this awesome business as sooner or later you get there. I mean that . Trust me
Grey1
and we all know about them but only few people stick to them .
The first rule of trading is stop loss. A trader must know when to stop . This could be a money management stop or a TA stop . I use the second one for variety of reasons.
A stop loss is not negotiable and must not be broken under any circumstance. I don’t break this important rule . I cannot afford to break the rule. Once I break this important rule I might as well pack it in and work for some one else. My destiny is in my own hand . Either stick to the rule or pack it in . We have already discussed in details over the years on this BB where to put the stop so I wont go over it again
The second rule of trading is SOFTWARE POWER . you need some software power to assist you in this game. This is 21St century trading and your opponents all have software power. YOU need that too .
The third rule of trading is letting your profit run . This is very difficult and most traders close position too quick . This could be the root of people losing . The nearest I have come to a crystal ball is exhaustion engine both on stock and the market . Learn how to use it . It can be the between success and failure
The forth rule of trading is acknowledging what phase market is going through .. market trends 230-430 PM 730-900 PM and oscillates in between ( times are approximations ) . when it oscillates we use the strategy 3 when it trends use your own trend following strategy . A good trader can tell when market is trending or oscillating
The fifth rule of trading is a TOP DOWN approach . before opening a position you MUST ( this is not negotiable ) know where market is heading and then move to stock ..
MARKET FIRST STOCK SECOND .
The sixth rule of trading is Risk management. You must learn this . You cannot ignore this . It is not all about entry or exit . I bet if I gave you my vwap engine you would lose if you ignored risk management.
Learn about ATR and how you position size yourself according the stock’s Volatility. I have outlined that in jerry’s thread some where.
The seventh rule of trading is realising this is not a game for second rated traders. Learn all above or market gets ya.
The trading game is really simple . You have no idea how simple it is but it needs education. Correct education . some of you been trading for 5 years now. 5 years is a long time but I bet with you I can make a trader out of the worse of you in 24 hours if you sat next to me and watching me trade. This is called Education . Education does not come with coaches. Most coaches are like vampire and holy water. Ask them to trade live their own strategy and it is as if you have given them the holy water .
I insist trader not to give up on this awesome business as sooner or later you get there. I mean that . Trust me
Grey1