Without trading rules trading is gambling. Yes, you read it right if you don’t follow rules then maybe you will become a trader. Trading rules are the backbone of every trader in the market. if someone is talking about not following the rules in the market then he is not a trader, maybe he is a gambler.
If you follow the rules in the market then you have a chance of successful trader in the market. But while doing trading you must keep in your mind there is no such thing as taking a sure thing in trading. According to me, there is one thing that can help you.
This is losses, if you learn lessons from your losses from time to time and you do not down any tiny thing while trading. Then there is a chance of becoming a trader. One more thing learn from your mistakes and do trading for the long term and perspective.
Table of Contents
Trading rules help you become a perfect trader in the market.
Without trading rules, we can’t survive in the market for a long time. If you want to become a trader, then you must go with the rules because rules help to become a trader.
Spouse you have made a rule, I will do a trade on hammer candlestick chart pattern then you must wait for your setup in the market. Breaking a rule may be possible for you in the market.
Protect your trading capital for play long in the market
Protecting your capital is an essential part of the market and trading rules. If you are not able to save your trading capital then maybe you not survive in the market.
Trade your capital like you have the last capital. If you don’t think like that then you will never learn about trading. Capital protection is more important than protecting your territory. Once you have success in protecting your capital. I bet on you, that you will win on your emotion, patience, and procrastination. Those trading rules belong form the golden rules.
Always use a stop-loss in every trade
Stop loss is the key to success in trading. without stop loss, we can’t survive in the market for a long time. If you imagine my stop loss never hit and I will come out in the profit, that is your confusion of mind. Without stopping we have nothing.
You must watch out for your stop loss when you going to place a buying or selling order in the market. If you do not look at stop loss partition then maybe you lose your whole capital.
Stop loss is known as a capital saver but many traders do not understand what is the importance of stop loss in the market. For Example, if you are doing the trade with $20 capital and your trade is running in GBPJPY (the most volatile currency for forex trading) and you have not placed your stop loss, then maybe be market can wipe out your capital in one move.
So overall my motive is to stop and never be afraid of the market, sit and relax.
Know when to stop trading and when to start
Many traders do over-trading. Many traders do too much trade. Many traders don’t know when to trade and what time is perfect. But traders do trader any condition.
You must have a clear vision of when to stop your trading. When you feel overjoyed, you may stop trading because you have had confidence at that time. In opposite if you are also feard then you must stop day trading. But you can do swing trading.
Many traders book heavy losses but they don’t stop trading because in the trader’s mind only one thing going on I can cover my loss, but unfortunately, it has not been covered.
So you should stop trading when you are too emotional, in fear, overjoyed, or overconfident and when you are not in front of your screen of the computer.
Use technology to your advantage
Nowadays technology plays the most important role in the market. If you have not adopted technology then maybe the market left you behind. In the market, there are many ways to take a profit from the technology market. It depends on how are you using the technology.
We know very well technology does not work initially in the market. That totally depends on how you use it and what is the purpose of your use in the market.
One thing I know is, nowadays in the market technology spreading its leg like algo trading, bot trading and its own setup strategy.
Treat trading like a business
That thought looks like a business in trading is possible. Yes my dear you can treat trading like a business. Let me tell you how you can treat this like a business.
First of all, you do not need to bring huge capital into the market. If you come with huge capital then you must know how you use it to get a return from the market.
Always use a trading plan
Always use a trading plan or blueprint
A trading plan is the life of every trader in the market. Without a trading plan, you are driving a car without brakes and blindly. A trading plan is essential for becoming a trader in the market. Till now I have seen many failed traders who are trading in the market without a trading plan.
Trading plan shows in the journey you have a clear vision and focus on proper setup. You must prepare a trading plan for trading. In a trading plan, you consider important things about trading like stop loss, target and entry.
You must focus on your risk tolerance in your trading plan. If your risk bear capacity is not described then how you will manage your capital? If you really want to improve yourself then you must use trading rules.
Become a student of the market because market has new lesson every time
Every time you must have an attitude of learning. Once you say to the market I’m a trader and the market hears that then nobody saves your capital and your management in the market.
Always stay in the learning phase, because the market has many lessons to teach a trader. And one thing to keep in mind is to always become a student in the market. Learn new things and analyse the chart.
Everyday market will teach you a new lesson to you. The market has beauty and new stuff to teach you and you have one responsibility to learn new things in the market.
Risk only what you can afford to lose
If you bear 100$ then forget about it. You must take risks that can you bear. If you can’t lose, you can’t be a trader.
Consider what you can lose in the market. But you must one thing keep in mind looser will winner. If you follow trading rules in the market. Then you will be the next future trader. So always follow the trading rules.
