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Trading Rules

Believe it or not every game has their own rules. We will mention a few trading rules you must obey to.

  • Always know the price you are going to get out before you enter a trade

 

  • Remember to use a demo account and do not open an account until you get at least 70% positive trades. We recommend this as you will learn lots from practising.

 

  • Remember that the trend is your friend. Trade against the trend and you will be in the trade for a while if not you might sell at a loss.

 

  • Do not try to catch every trade that comes your way. Please do your homework first as this will save you from making irrational decisions on the spot. Remember that you have to work out the price you will exit at first before you enter any trade. Do not break this rule.

 

  • Read and constantly keep learning about technical analysis. This will save you from paralysis when the market behaves in ways you don't understand at first glance.

 

  • Don't get greedy when you are in a good trade. Please write down your exit price, this way you won't  hang onto a trade until it becomes a losing trade.

 

  • Nobody tells you this, but day trading can be stressful, it can at times be long hours in front of the computer. However, develop a system that works for you. Once you learn how to read charts, learn how to set conditional orders using your platform and create your own mechanical system. This takes away all the psychological factors.

 

  • Lookout for low risk entries and high return expectations. Money management will take care of itself if you follow your trading plan and the rules.

 

  • If you have had multiple loses in a row, take a break. Step back and learn from your mistakes. Write this down, what could have done better, how were you feeling when you entered the trade, did you follow the trading plan ?

 

  • One of the most important trading rules is to take responsibility for your own actions. Don't ask others what to do, they haven't done their homework. Everyone thinks differently so only you know what the trading plan is all about.

 

  • The beauty about the market is that it will always try to make you change your mind about the direction of the stock. This will happen over and over when markets are volatile, when there is hype and noise.

 

  • Have faith in your own ability. After all you are in it for the adventure. Enjoy your own money win or lose. Why give your hard earn money to some else to manage it for you and let them have all the fun?

 

  • Don't be foolish by thinking that just because you had several loses your plan is not working for you. Remember that losing is just part of the game. If you owned a shop you would still have to pay rent, staff, electricity, materials, tax, etcetera ...  view your loses as if you too had to pay for your business outgoings.

 

  • A lot of people get into a trade shutdown their PC, pray and hope that the stock will go there way?! Remember you are here to trade because you have a passion for technical trading and you will obey the trading rules. There is no pray and hope. Make every trade an educated decision based on what you have learn to not by taking punts.

 

 

 

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