Forex Personal Trading Rules
For a copy of my PERSONAL TRADING RULES in the Forex markets, please contact me at the email below.
Sample:
Additional Thoughts€¦.
Five fundamental truths: (Mark Douglas, Trading in The Zone)
1. Anything can happen
2. You don't need to know what is going to happen next to make money
3. There is a random distribution between wins and losses for any given set of variables that define an edge
4. An edge is nothing more than an indication of a higher probability of one thing happening over another
5. Every moment in the market is unique
I am a consistent winner because: (Mark Douglas, Trading in The Zone)
€ I objectively identify my edges.
€ I predefine the risk of every trade.
€ I completely accept the risk or I am willing to let go of the trade.
€ I act on my edges without reservation or hesitation.
€ I pay myself as the market makes money available to me.
€ I continually monitor my susceptibility for making errors.
€ I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.
Bias
€ Enter each trade with no Bias
€ Trade the facts, remove emotion
€ Lose your opinion - not your money.
€ Successful traders isolate themselves from the opinions of others.
€ In the world of money, which is a world shaped by human behavior; nobody has the foggiest notion of what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
€ It is better to be more interested in the market's reaction to new information that in the piece of news itself.
Patience
€ Standing aside is a position.
€ Continually strive for patience, perseverance, determination, and rational action.
€ Never get into the market because you are anxious because of waiting.
€ It's much easier to put on a trade than to take it off
€ Treat it gently by allowing your equity to grow steadily rather than in bursts.
€ Not only is patience required to enter a trade, but imperative for letting good trades do their own work.
Discipline
€ 100% discipline and consistency
€ Always discipline yourself by following a pre - determined set of rules.
€ You must have a program, you must know your program, and you must follow your program do not become complacent
€ Never attempt to call Tops or Bottoms
€ Avoid getting in or out of the market too often
€ Successful traders have a well-scheduled planned time for studying the markets.
€ If a market doesn't do what you think it should do, get out.
€ When the ship starts to sink, don't pray - jump.
€ The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
Attitude
€ Keep a positive attitude, no matter how much you lose. Another opportunity will present itself.
€ Don't take the market home.
€ Successful traders are not afraid to buy high and sell low (small stops will protect you)
€ Successful traders buy into bad news and sell into good news.
€ Beware of large positions that can control your emotions. Don't be overly aggressive with the market.
Only take positions which you are comfortable with and can accept if trade goes south.
€ You must believe in yourself and your judgment if you expect to make a living at this game.
€ Be humble - on every trade there exists a more experienced trader on other side
Loss and Failure
€ Nothing works all the time, small losses are inevitable
€ Losses make the trader studious - not profits.
€ Take advantage of every loss to improve your knowledge of market action.
€ Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
€ Accept failure as a step towards victory
€ Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let ego and greed inhibit clear thinking and hard work.
€ A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss - that is what does the damage to the pocket book and to the soul.
€ One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
Sample:
Additional Thoughts€¦.
Five fundamental truths: (Mark Douglas, Trading in The Zone)
1. Anything can happen
2. You don't need to know what is going to happen next to make money
3. There is a random distribution between wins and losses for any given set of variables that define an edge
4. An edge is nothing more than an indication of a higher probability of one thing happening over another
5. Every moment in the market is unique
I am a consistent winner because: (Mark Douglas, Trading in The Zone)
€ I objectively identify my edges.
€ I predefine the risk of every trade.
€ I completely accept the risk or I am willing to let go of the trade.
€ I act on my edges without reservation or hesitation.
€ I pay myself as the market makes money available to me.
€ I continually monitor my susceptibility for making errors.
€ I understand the absolute necessity of these principles of consistent success and, therefore, I never violate them.
Bias
€ Enter each trade with no Bias
€ Trade the facts, remove emotion
€ Lose your opinion - not your money.
€ Successful traders isolate themselves from the opinions of others.
€ In the world of money, which is a world shaped by human behavior; nobody has the foggiest notion of what will happen in the future. Mark that word - Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.
€ It is better to be more interested in the market's reaction to new information that in the piece of news itself.
Patience
€ Standing aside is a position.
€ Continually strive for patience, perseverance, determination, and rational action.
€ Never get into the market because you are anxious because of waiting.
€ It's much easier to put on a trade than to take it off
€ Treat it gently by allowing your equity to grow steadily rather than in bursts.
€ Not only is patience required to enter a trade, but imperative for letting good trades do their own work.
Discipline
€ 100% discipline and consistency
€ Always discipline yourself by following a pre - determined set of rules.
€ You must have a program, you must know your program, and you must follow your program do not become complacent
€ Never attempt to call Tops or Bottoms
€ Avoid getting in or out of the market too often
€ Successful traders have a well-scheduled planned time for studying the markets.
€ If a market doesn't do what you think it should do, get out.
€ When the ship starts to sink, don't pray - jump.
€ The difference between winners and losers isn't so much native ability as it is discipline exercised in avoiding mistakes.
Attitude
€ Keep a positive attitude, no matter how much you lose. Another opportunity will present itself.
€ Don't take the market home.
€ Successful traders are not afraid to buy high and sell low (small stops will protect you)
€ Successful traders buy into bad news and sell into good news.
€ Beware of large positions that can control your emotions. Don't be overly aggressive with the market.
Only take positions which you are comfortable with and can accept if trade goes south.
€ You must believe in yourself and your judgment if you expect to make a living at this game.
€ Be humble - on every trade there exists a more experienced trader on other side
Loss and Failure
€ Nothing works all the time, small losses are inevitable
€ Losses make the trader studious - not profits.
€ Take advantage of every loss to improve your knowledge of market action.
€ Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
€ Accept failure as a step towards victory
€ Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don't let ego and greed inhibit clear thinking and hard work.
€ A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss - that is what does the damage to the pocket book and to the soul.
€ One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.
Source...