List of personal rules for trading that makes U successful

My #1 rule is to accept that I'm going to be wrong 20 to 30% of the time and to get out with as small of a loss as possible.

And some days the market will just seem to be against you even if you're following your strategies that normally work.
I like having a hard loss of the day set in place then I'm done for the day if i hit that point.

I still have a long long way to go but I still manage to make money since I limit my losses.
 
Quote from Veyron 16.4:

BHOFFCO,

Nice log and I can appreciate what you said. Your decision at 10:59 to not enter, surprised me, given what you said earlier in your audio log about how you would have liked to enter earlier! I cannot see the 10:59 candle completely, but it looks like an old Pin Head that I used to see and use quite often, yet you passed up on that cue - interesting.

By 12:00, really thought you might have gone ahead (again, based only on what you said about how you like to enter) and positioned your capital for a run-up - but again, you said you got stuck - I guess, mentally. I think your "?" with the "obscenity" explains it all.

I used to run into the same mental disconnect all the time, so as you were going through your day in your blog, it rang very true to my ears.

"You get your Fibonacci traders and other nonsense like that....." Right about the time you went to lunch. I thought that was funny and well worth the watch. I take it that you are not a pure technical trader? It also looks like you trade with a small stop as well. This is one of the primary reasons why I shifted to being a technical trader many years ago - to remove the second guessing and mental games that I know will creep into my decision making. The key there, of course, is making sure you have a solid technical platform for making decisions. All a technical system does is code your own thought process into a mechanical methodology for execution. In my mind, that removes much of the indecision and still allows me to correct mistakes when the market anomalies occur.

Very interesting video - thanks for contributing.
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Thanks for the feedback. I appreciate it.

I am purely a technical trader but I do not use indicators. My charts are very naked.

It is always a battle with me between being mechanical and having some discretion.

I can quantify all my setups but sometimes have to break the rules.

I made the Fib comment out of frustration from all the hype out there.

There are tools that can help but they are often presented without the acknowledgment that there needs to also be an understanding of the raw structure of price action.
 
Honesty & objectivity are of utmost importance – lose your emotions

Always be open, but trust no one except yourself – and learn to trust yourself completely

To hell with what anyone thinks, including yourself – having an opinion will break your account – no one knows what the mkt will do, or the best way for you to trade – anyhow

Never matters what you think – only what you do

Accept price will do what price will do - always

Always… observe – anticipate – react

Never… hope – wish – pray – woulda – coulda – shoulda – what if – if only

Become your harshest critic, staunchest ally, and most objective observer

Confidence will make you money – ego will break you

Learn to embrace and live on the hard right edge – become friends with it

Focus – focus – focus…. and be prepared to work your ass off

Have sufficient capitalization – scared money never wins – and a broke trader is useless

A trader is never right or wrong – just profitable or broke

Becoming profitable will take longer than you think




Decide how you will trade and stick to it

Use multiple time frames

Draw straight lines

Follow price, never fight it

Learn to read the emotion in a chart

Learn the difference between real price movement and gamesmanship

Identify exactly where you are wrong in a trade

Cut losers religiously – and without hesitation or thinking

Accept you will have losers

Your eyes are the best indicator ever devised for trading – if you trust them

Learn to sit on your hands – both when you’re in and out – of the mkt

Simpler is always infinitely better





Know when economic reports / major announcements are due out – be flat before then – never anticipate how they will be received – simply react to price

Create both a trading plan and a business plan


Give something back the best way you can – when you’re able

Trading is a journey - not a destination

Trading is only about making money – ever

None of what you read here will ever matter – unless you make it your own


Regards

RN
 
Quote from novice:

I would like to hear about all the lessons u may have learned from the time u first started trading .The mistakes made and what one has learned from them. I am sure each one has a list of
what to do and not do when trading.
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1. The market is always right

2. If in doubt, refer to rule #1

3. Price action is all that matters
 
Quote from Trad'nUp:

Oh, 1 rule that is imperative, stick to whatever plan you have. When you try to improvise along the way because you think you can make more if do something else, you'll loose....usually.

Instead, I'm out, in cash, and am sitting here frustrated that I'm missed a lot of plays already but if I jump in haste, I know I'll loose.

I'm not sure if experienced traders go through that, but it's hard to accept leaving money out there.
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These are two things I've found the most difficult to overcome and also very costly: changing the plan because of thinking about a trade after it's on, and chasing the trade that I was ready to put on but hesitated, thereby missing the entry price that made the trade a good one in the first place.

When I miss an entry, my friend always tells me, "Don't worry about it, another boat will come along."

Quote from Veyron 16.4:

I take it that you are not a pure technical trader? It also looks like you trade with a small stop as well. This is one of the primary reasons why I shifted to being a technical trader many years ago - to remove the second guessing and mental games that I know will creep into my decision making. The key there, of course, is making sure you have a solid technical platform for making decisions. All a technical system does is code your own thought process into a mechanical methodology for execution. In my mind, that removes much of the indecision and still allows me to correct mistakes when the market anomalies occur.
More...

This is what I strive to be, a purely technical trader. Tell me how long it takes to get "yourself" out of your own way and trade purely technical. Please leave me with a sense of hope this weekend by not telling me 5 years or 10,000 hours of screen time.

:eek:
 
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Quote from novice:

I would like to hear about all the lessons u may have learned from the time u first started trading .The mistakes made and what one has learned from them. I am sure each one has a list of
what to do and not do when trading.
More...
My rules to trade:

* Don't trade, invest.
* Don't hold overvalued stocks/ETFs.
* Get out when the crowd is too optimistic.
* Try not to use leverage, and if I do, use protection against blowup (in my case leveraged ETFs that track the DAILY movement).
* Use an income strategy.
 
Quote from the1:

Most important rule ever ------>>>> Be Patient!
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Best rule ever, plus know your exit before entry (support and resistance within your time frame).
 
If you trade stocks intraday, always keep an eye on the futures(ES)/Spy/Market breath/Tick, and think about convergence /divergence between your stocks and the market.
 
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