Basic trading rules |

traderAllen
Administrator

Retail Forex trader

Posts: 603

Basic trading rules Aug 1, 2015 9:35:30 GMT -5

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Post by traderAllen on Aug 1, 2015 9:35:30 GMT -5

Here are my basic rules all traders need to adhere to.

DO NOT POST IN THIS THREAD YET. I AM GOING TO BREAK THESE DOWN AS A GET TIME.

1.Don't lose money!!

2. Trading is a business if you don't understand that you can't trade.

3.You must have a plan, do not trade at random.

4.Discipline, Discipline, Discipline

5.Study everything about your market and trade only that market.

6.Use a Stop-lose or close your account

7.Keep it simple, if a 10 year old can't understand it, its too complex.

8.You wont win every trade so don't expect to.

9.You need/can keep your emotions out of your trading is a lie. It cant be done your are human.

10. Never have more than 1% trade risk and/or 5% account risk.

traderAllen
Administrator

Retail Forex trader

Posts: 603

Basic trading rules Aug 2, 2015 18:07:54 GMT -5

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Post by traderAllen on Aug 2, 2015 18:07:54 GMT -5

Rule number one. Don't lose money. You often hear that you should cut your losses short but what really doesn't mean? Were not going to profit on every trade. Some trades will be a loss. Some trades will be breakeven. But losing money on a trade that did not work out is not what is meant by don't lose money. What we mean by saying don't lose money is don't lose more than what you needed to to see if the trade was going to work. Every trade has has a point where the trade was no longer valid it is at that point that you need to exit the trade. Don't lose money by holding onto a trade that is no longer valid. Don't lose money by being overleveraged. Don't lose money by making stupid mistakes(well at least keep this one to a minimum).

traderAllen
Administrator

Retail Forex trader

Posts: 603

Basic trading rules Aug 2, 2015 18:13:47 GMT -5

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Post by traderAllen on Aug 2, 2015 18:13:47 GMT -5

Rule number two. Trading is a business. This is probably one of the harder rules to understand. Your trading is to be set up just as though you are running a business. You need to have a quiet trading room where you can monitor the markets free of distractions. Your trading computer should be just that, used only for your trading business. You need to be accountable, just as though you had an account and keeping track of your business expenses, you need to have the same level of accountability and tracking your profitable as well as your losing trade. If your trading plan calls for you being at your trade dress from 8 AM to 10:45 AM than be there ready to go to work. Just because you do not have a boss to look over your shoulder does not give you the right to slack off. Be responsible, take ownership of your actions, this is not a game this is a business. So keep yourself on point.

VictorSB: He was the only person I "knew" that was "profitable" with Bob's method and approach. And that's why I'm a bit skeptical about Bob's methodology Oct 23, 2022 16:21:40 GMT -5

VictorSB: Hello, I've investigated a bit and found out that traderallen is no longer trading and is currently working full-time. I'm not saying he lied all these years but it's quite strange don't you think?. Oct 23, 2022 16:16:06 GMT -5

pawko: Allen, I have read the entire forums with all your posts, comments and answers. Your dedication, your work and your commitment is just OUTSTANDING.
I would like thank you so much for all your great work.

Thank you again Jun 23, 2022 15:20:05 GMT -5

Basic trading rules

Post by traderAllen on Aug 1, 2015 9:35:30 GMT -5

Post by traderAllen on Aug 2, 2015 18:07:54 GMT -5

Post by traderAllen on Aug 2, 2015 18:13:47 GMT -5

Shoutbox