List of personal rules for trading that makes U successful

http://www.trading-naked.com/Articles_and_Reprints.htm assuming u are brand new, the 1st thing i learned about 3 or 4 times was i couldnt trade, i went thru several smalll accounts, several thousand $s. None of these rules will help u until u have had some success trading. Until u do, i would suggest saving all your 10k and 5k investments and practice trading, try a few styles , see what feels good and get good at it, when it becomes easier to play, then open an acct
 
Quote from Ticketwatcher:



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All profound truth is paradoxical.

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The following have worked for me, when I have excercise the discipline to adhere to them.

1. To make money over a long series of speculations I must be willing to lose. Specifically I must prepared to take losses once the position moves against me a predetermined amount.

2. I must be prepared to close a profitable position when an unambiguous, predetermined set of conditions are met. Specifically willing to leave money on the table.

My biggest problems have been with too much size. Large size often shows up when I try to make up for prior losses. Sadly, when size is larger, rule 1. above is a lot more difficult to follow.
 
For me, the best approach is a mechanical one.

I have a routine that I follow every day after the market closes

I have another routine that I follow the night before and I wake up early before the open and go through another routine.

When the bell rings I know what I am going to do and I DO IT.

I realize that I am going to win AND lose. I don't know how much I will win, but I do know how much I can lose before I have to stop for the day....

The rest is execution, discipline and accounting..

On the weekends and at the end of each month I evaluate how I am doing. If I need to make changes in my trading plan I do it AT THAT TIME, not during the week. If I make a change and it doesn't result in immediate improvement to my bottom line, I stop trading....until I figure it out....

Thats it....no other rules

Once I simplified it to that point, I started to make money consistently...
 
Quote from qixiq:

The following have worked for me, when I have excercise the discipline to adhere to them.

1. To make money over a long series of speculations I must be willing to lose. Specifically I must prepared to take losses once the position moves against me a predetermined amount.

2. I must be prepared to close a profitable position when an unambiguous, predetermined set of conditions are met. Specifically willing to leave money on the table.

My biggest problems have been with too much size. Large size often shows up when I try to make up for prior losses. Sadly, when size is larger, rule 1. above is a lot more difficult to follow.
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I think that psychological preparation is the key to profitable trading.

You have to be prepared for a position on an individual stock to move against you.

You have to be prepared for the entire market to move against you.

How you handle that pyschologically seperates the profitable traders from the pretenders.


I understand that my best trading days have been when a stock or the market moved against me, and I was able to manage that in such a manner that I came away flat. The groundwork for those days was laid with psychological preparation.

Profitable trading is easy when the market goes your way, but we all know their are many days that it does not go our ways.
 
I made lots of money and then lost it all several times, until one day I realized; I put too much capital in one instrument or stock. My gains have been more consistent since I started trading more than 5 stocks at the same time.
 
Quote from TraderZones:

Rule #1 Drawing up a list of trading rules, like this, will likely not help you become a profitable trader

Rule#2 A trader finding a profitable backtest will likely find it does not work in the real market

Rule#3 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#4 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#5 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#6 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#7 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#8 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#9 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#10 You need 1+ outperformance edges (very rare) and solid money management skills.

Rule#11 You need 1+ outperformance edges (very rare) and solid money management skills.

etc. etc.
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Sadly, this is absolutely essential to make tons of money. Goldman Sachs makes billions just on one edge, i.e. high-frequency trading.
 
Quote from shikantaza:

I only eat boiled white rice. That's my secret.
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Here is mine. Every morning before the open,
I write all my trading rules on a grain of rice and then
at noon, have it for lunch.
 
Quote from hoffmanw:

Sadly, this is absolutely essential to make tons of money. Goldman Sachs makes billions just on one edge, i.e. high-frequency trading.
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unfortunately, this is lost on a lot of people who think making a list or psychology will do anything towards cracking the tiny fraction of lucrative traders...
 
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