Continuation. The beginning is in my previous idea.
Law 15. Money is a by–product of good trading.
Your goal in the market cannot be to earn money. You can't influence it. Your goal is to do your job efficiently. If you have a trading system, use risk management and find the strength to stick to your rules, then the money will come.
Law 16. There are no errors, they are just pointers of the wrong path.
If you made a mistake and did not repeat this mistake again, you just got one step closer to the goal.
Law 17. Before entering into each transaction, a trading plan must be drawn up.
What if the price goes up or down? What are you going to do? When will you get out of a bad deal? When will you lock in a profit? Why? If there is no plan or it is not recorded, most likely you will succumb to emotions during the transaction and make a mistake.
Law 18. Do not trade in a state of altered consciousness.
If you are tired, drunk, angry, upset, joyful... any emotion affects your trading decisions. If you feel very good or very bad, then you will overestimate the risks. If you are depressed, then you will miss out on good deals.
Law 19. Never sit out losses.
The time of your life is worth more than the few bucks you saved on the stop-loss. Don't waste your time being in a losing trade. You'd better use this time to try again.
Law 20. Losses are an inevitable attribute of trading.
You cannot avoid and be afraid of them. Think of the stop-loss price as a standard entry fee for each trade, as if you have already paid this money. Then a losing deal will not bring disappointment, and a profitable deal will be a pleasant reward for the contribution made.
Law 21. You just need to wait out the period of failures by reducing trading.
If your trading system works correctly and you have done a good analysis, but losing trades still go one by one, this is normal. Reduce the amount of each transaction by five times. Trade a little money. Get your confidence back and get back into the game.
Law 22. Think in terms of probabilities, not emotions.
You can't influence the market. The market doesn't owe you anything. When entering into a deal, you must take into account the most extreme options. And suddenly today the price will rise or fall by 50%. What will happen to my transaction and my deposit then?
Law 23. Don't let a profitable trade turn into a losing one.
A professional trader does not know the feeling of greed. When you have determined the take profit level before entering a trade, stick to it or use a sliding stop-loss, if the price is obviously going in your direction.
Law 24. There is a paper profit, but there are no paper losses.
They are quite real. Don't be fooled by the fact that the unprofitable deal has not been closed yet and everything can change. You'll just lose even more.
Law 25. The ability to stay out of the market is no less important than the ability to enter it in time.
Sometimes it's better to look from the outside as the price rushes in different directions after important news or rumors, rather than trying to make money on it. There is a high probability that you will become the food for the big guys.
Law 26. Do simple things, they are easier to pass the test of time.
Complex analytics with ten trading indicators is no better than a simple volume analysis. It's not about indicators or incredible chart analysis. Often complex trading systems give the same percentage of hits as a coin flip.
Law 27. The winner is not the one who knows more, but the one who is more stable in his trading strategy.
Everything is decided by risk management and trading distance. If each of your profitable trades covers the losses of four losing trades, you will inevitably get rich after some time. It's math.
Law 28. All you need today is to make one good trade.
Just one. Concentrate on this task and don't think about the rest. Don't think about money, don't think about problems, don't think about what neighbors and friends will say. Today you only need one good trade. But tomorrow there will be the same task.
To be continued.
Law 15. Money is a by–product of good trading.
Your goal in the market cannot be to earn money. You can't influence it. Your goal is to do your job efficiently. If you have a trading system, use risk management and find the strength to stick to your rules, then the money will come.
Law 16. There are no errors, they are just pointers of the wrong path.
If you made a mistake and did not repeat this mistake again, you just got one step closer to the goal.
Law 17. Before entering into each transaction, a trading plan must be drawn up.
What if the price goes up or down? What are you going to do? When will you get out of a bad deal? When will you lock in a profit? Why? If there is no plan or it is not recorded, most likely you will succumb to emotions during the transaction and make a mistake.
Law 18. Do not trade in a state of altered consciousness.
If you are tired, drunk, angry, upset, joyful... any emotion affects your trading decisions. If you feel very good or very bad, then you will overestimate the risks. If you are depressed, then you will miss out on good deals.
Law 19. Never sit out losses.
The time of your life is worth more than the few bucks you saved on the stop-loss. Don't waste your time being in a losing trade. You'd better use this time to try again.
Law 20. Losses are an inevitable attribute of trading.
You cannot avoid and be afraid of them. Think of the stop-loss price as a standard entry fee for each trade, as if you have already paid this money. Then a losing deal will not bring disappointment, and a profitable deal will be a pleasant reward for the contribution made.
Law 21. You just need to wait out the period of failures by reducing trading.
If your trading system works correctly and you have done a good analysis, but losing trades still go one by one, this is normal. Reduce the amount of each transaction by five times. Trade a little money. Get your confidence back and get back into the game.
Law 22. Think in terms of probabilities, not emotions.
You can't influence the market. The market doesn't owe you anything. When entering into a deal, you must take into account the most extreme options. And suddenly today the price will rise or fall by 50%. What will happen to my transaction and my deposit then?
Law 23. Don't let a profitable trade turn into a losing one.
A professional trader does not know the feeling of greed. When you have determined the take profit level before entering a trade, stick to it or use a sliding stop-loss, if the price is obviously going in your direction.
Law 24. There is a paper profit, but there are no paper losses.
They are quite real. Don't be fooled by the fact that the unprofitable deal has not been closed yet and everything can change. You'll just lose even more.
Law 25. The ability to stay out of the market is no less important than the ability to enter it in time.
Sometimes it's better to look from the outside as the price rushes in different directions after important news or rumors, rather than trying to make money on it. There is a high probability that you will become the food for the big guys.
Law 26. Do simple things, they are easier to pass the test of time.
Complex analytics with ten trading indicators is no better than a simple volume analysis. It's not about indicators or incredible chart analysis. Often complex trading systems give the same percentage of hits as a coin flip.
Law 27. The winner is not the one who knows more, but the one who is more stable in his trading strategy.
Everything is decided by risk management and trading distance. If each of your profitable trades covers the losses of four losing trades, you will inevitably get rich after some time. It's math.
Law 28. All you need today is to make one good trade.
Just one. Concentrate on this task and don't think about the rest. Don't think about money, don't think about problems, don't think about what neighbors and friends will say. Today you only need one good trade. But tomorrow there will be the same task.
To be continued.