Spend a few minutes online before reading phrases like “Plan you’re trading; trade your plan” and “keep your losses to a minimum”. For new traders, this piece of information may seem more distracting than any active advice. New traders often want to learn how to set up their charts so they can make money quickly.
To succeed in trading, one must understand and adhere to the importance of a set of tried-and-true rules that guide all types of traders, with a variety of trading account sizes. To learn new techniques on how to be a successful trader you can try reading books, taking classes from companies like Certus Trading Reviews and others a trading education company lead by Matt Choi Certus Trading with a mission to help traders and investors achieve consistent profits.
Not only is each rule important, but the effects are stronger when they work together. Trading with these rules will greatly increase the odds of winning in the markets.
Rule 1: Always use a trading plan:
A trading plan is a set of written rules that define a trader’s entry, exit, and cash management criteria. Using a trading plan allows traders to do this, however, it is a time-consuming endeavor.
With today’s technology, it’s easy to test a trading idea before risking real money. This practice, known as Appendix A, applies trading ideas to historical data, allows traders to determine whether a trading plan is feasible, and shows the logic of the project. Once a plan is created and the appendix shows good results, this plan can be used in real trading. The key here is to stick to the project. Taking tradings outside the trading plan, even if they become winners, is considered bad trading and destroys any expectations that existed in the project.
Rule 2: Treat the trading as a trading:
To succeed, one must approach the trading as a full- or part-time trading — not as a hobby or a job. For a hobbyist who has no real commitment to learning, trading can be very costly. It can be frustrating to have a busy, regular paycheck. Trading is a trading and will face costs, losses, taxes, uncertainties, stress, and risk. As a trader, you are basically a small trading owner and you need to do your research and strategy to increase the potential of your trading.
Rule 3: Use technology to your advantage:
Trading is a competitive trading, and it is safe to assume that the person who sits on the other side of the trading makes full use of technology. Ranking sites allow traders an infinite variety of ways to view and analyze markets. Putting an idea back in historical data before you risk any money can save a trading account, not to mention stress and frustration. Getting market updates with smartphones allows you to track trading almost anywhere. Even the technology we adopt today, like high-speed internet, can greatly improve trading performance.
Using technology to your advantage and keeping current with the available technological advancements can be fun and rewarding in trading.
Rule 4: Protect your trading capital:
Saving money to finance a trading account takes a long time and a lot of effort. Next time it will be more difficult (or even impossible). It should be noted that protecting your trading capital is not the same as having no loss trading. All traders lose trades; That is part of the trading. Protecting capital means taking unnecessary risks and doing everything you can to protect your trading.