1 First you know about Yourself
Trading is not for everyone. If risk makes you ill or if take risk brings out recklessness in you then trading is probable not for you.
But if you can handle risk with discipline then perhaps you can find a vocation or avocation as a trader.
Only you can answer that question.
2 Lose your Ego not Money
You need to silence your ego in order to listen to the market.
To trade effectively you need to put yourself aside. Don’t be crushed by the market, but don’t are think you have mastered it either.
3 Trade for Success not for money
Your motivation should be first and foremost to make a well executed trade. If money alone is your motivation you will severely limit your chances of success.
Because focusing on money will said all kinds of emotional Issues from fear to greed.
It will make you afraid of losses or it will tempt you to trade to often with too much risk.
4 Traders must have Discipline
The ability to master your mind, your body and your irrationals is the key to trading.
For a Trader discipline mean the ability to devise a trading plan, executive according to that plan and never deviate from that trading plan.
5 Cut your Loses Quickly
When the market goes against your trading position and you did your predetermined stop, exit the trade exit when the loss is a small one.
Then re-valuate your strategy and execute a new trade.
Keeping your losses small will keep you is the game.
6 Let your Profits run
When you place a trade, know in advance where you will exit for a profit. When the market reached that level exit the position.
7 Know when to Trade
Trade when your analysis, your system and your strategy say that you have a buy or sell to executive.
If the market does not have a clear direction, then don’t trade.
Keep your mind on the market but keep your money out of it.
8 Take a Break
If your three trades goes against you this is not the time to take on more risk. So sit the sidelines and watch the market.
9 Love you losers also
Losing trades will be your best teachers. When you have a losing trade it because of some flaws in your analysis or judgment.
So re-valuate the analysis and if necessary you may enter the trade again.
10 Divide your Capital and Trade
Don’t trade all your capital in a single trade. Divide your capital in to albeit 10 equal part and trade with that trading capital.
