The Golden Rules of Trading.

[zahidrock]

I think you all rules are very important for every trader. If any trader follow your all rules on trading then they can easily control his emotion and can make good profit from their trading. "- Start with the basics of technical analysis, moving averages" i think its most important for entering on market.

[ernestina]

Summarize a few golden rules to consider to make your trading strategy:
- Do not engage in trading if you think you become rich in few months
- Know all the technical terms
- Choose a broker that offers a responsive customer service in French offering free training and that can launch small trades
- Combine technical analysis and fundamental analysis to make your trading strategy
- Start with the basics of technical analysis, moving averages or
- Do not ignore the basic rules of money management, namely:
1. do not start a trade representing over 10% of your trading account
2. Remember, stress management in all this! Read our article on stress and Trading.

Good trading to all

Good trading knowledge for newbie but not all trader follow explicitly. The very good tip here for me is not to trade up to 10% of equity in the risk. I will ensure that no matter how inviting trading opportunity looks I will not risk my account unnecessarily.

[engsmsm]

Thanks for these tips my dear and I also agree with you in a lot of these tips to avoid big losses, which is located where everyone, especially beginners and many of them leave the trade because of the large loss

[Hiron]

There are some golden rules that have to maintain all good trader.
Such as:
1. Always use stops.
Risk control is the true measure of a good consistent trader. If you lose all your capital on the lemons, you can't play when the great trades set up. Consider cash as having an option value.
2. Don't over trade.
This is the number one reason why individual traders and investors lose money. Look at your trades of the past year and apply the 90/10 rule. Dump the least profitable 90% and watch your performance skyrocket. Then aim for that 10%. Over trading is a great early retirement plan for your broker, not you.
3. Don't forget to sell.
Date, don't marry your positions. Remember, pigs get slaughtered. Always leave the last 10%-15% of a move for the next guy.
4. Don't chase the market.
If you do, it will turn back and bite you. Wait for it to come to you. If your miss the train, there will be another one along in hours, days, weeks, or months. Patience is truly a virtue in this business.
5. When I put on a position, I calculate how much I am willing to lose to keep it.
I then put a stop just below there. If I get triggered, I just walk away. Only enter a trade when the risk/reward is in your favor. You can start at 2:1. That means only risk a dollar to potentially make two.
6. Always be willing to go Long (Buy) and Short (Sell).
You have to be flexible and dynamic in your trading...one minute I could be long the market and the very next minute I may be short the market. You need to be able to flip flop and be quick and nimble in your trading.
7. You don't have to be a genius to play this game.
If that was required, Wall Street would have run out of players a long time ago. If you employ risk control and stops, then you can be wrong 40% of the time, and still make a living. That's little better than a coin toss.
If you're wrong only 30% of the time, you can make millions. If you're wrong only 20% of the time, you are heading a trading desk at Goldman Sachs. If you're wrong a mere 10% of the time, you're running a $20 billion hedge fund that the public only hears about when you pay/invest $100 million. And if someone tells you they're never wrong, as is often claimed on the Internet, run a mile, because it's simply impossible!
8. Trading is hard work.
Trading attracts a lot of wide eyed, naive, but lazy people because it appears so easy from the outside. You buy a stock (futures contract, forex, option, etf, etc.), watch it go up, and make money. How hard is that? The reality is that successful trading and or investing requires twice as much work as a normal job. The more research you put into a trade, the more comfortable you will become, and the more profitable it will be.
9. Don't confuse a bull market with brilliance.
When the market goes straight up (i.e. 1995 to 2000) anybody and their grandmother can make money.
10. John Maynard Keynes, the great economist and early hedge fund trader of the thirties, once said: "Markets can remain illogical longer than you can remain solvent." Hang around long enough, and you will see this proven time and time again.
11. Don't believe the media.
Look for the hard data, the numbers, and you'll see that often the talking heads, the paid industry apologists, and politicians don't know what they're talking about.
12. Sometimes the conventional wisdom is right.
13. Invest like a fundamentalist, execute like a technical analyst.
(Swing) TRADE using technical analysis...then by understanding basic fundamentals will make you even better.
14. Technical analysis
Knowing how to read charts like a daily newspaper is key to successful trading. That said, learn what an "outside vertical bar" is, and who the hell Leonardo Fibonacci is.
15. The simpler a market approach, the better it works (the 'KISS' method)
Everyone talks about "buy low and sell high", but few actually do it. All black boxes eventually blow up, if they were ever there in the first place.
16. Markets are made up of people
Understand and anticipate how traders think, and you will make a lot of money. The market is made up of peoples fear and greed...it's all psychological...learn how to read people and you'll certainly be ahead of everybody else.


17. Understand what information is in the market and what isn't and you will make more money.
18. Do the hard trade, the one that everyone tells you that you are "Crazy" to do
If you add a position and then throw up or feel sick afterwards, then you know you've done the right thing.
19. If you are trying to get out of a hole, the first thing to do is quit digging and throw away the shovel - exit your trade asap
A blank/neutral/flat position can be invigorating.
20. Making money in the market is an unnatural act
We humans are predators and hunters evolved to track game on the horizon of an African savanna. Modern humans are maybe 5 million years old, but civilization has been around for only 10,000 years.Our brains have not had time to make the adjustment. In the market, this means that if a stock has gone up, you believe it will continue. This is why market tops and bottoms see volume spikes.

[forextrader38]

Yes, it is a real account of a very good set of proposals before the consultation, you are mentally and psychologically, to prepare and foreign business must have enough information. Market movement that can take clear and detailed plans have the ability to analyze, and can be applied commercially.

[irena_xcn]

I really like your tips although the forum hasmany thrads on the same line, I personally find these pieces of advice very useful and practical. Thanks.

[nizamitrading]

Summarize a few golden rules to consider to make your trading strategy:
- Do not engage in trading if you think you become rich in few months
- Know all the technical terms
- Choose a broker that offers a responsive customer service in French offering free training and that can launch small trades
- Combine technical analysis and fundamental analysis to make your trading strategy
- Start with the basics of technical analysis, moving averages or
- Do not ignore the basic rules of money management, namely:
1. do not start a trade representing over 10% of your trading account
2. Remember, stress management in all this! Read our article on stress and Trading.

Good trading to all

thank you my dear jo app ne itna acha or itna useful knowledge ham se share kiya ha es ka mugh ko kafi faida howa ha or main ab es par aamal kar k apne losses ko mazeed kam karoun ga

[ikram9876]

realy its the golden ruls for forex ager es rulz ko hum fallow karey tu hum ak ache traders ban sakty hain muje tu ye rulz buht pasand aye ...and i am trying to follow this ruls ..

[zeshan]

i think the new traders don t trade on gold it is very risky i think they trade on just the currencies pair not gold if they want to trade on gold so must have 500 dollars in their account and then trade 10 cent volume

[bjbh427]

i believe that the rules that you have mentions for forex tradings are really awsome and i will try to implement them in my tradings as well,,,
in my point of view the very basic thing that a person should do is that he should open a demo account and practice as much as possible in it.