When you first learn to trade the financial markets, your head is so full of information that it can be difficult to know what you should be doing. With so many markets, strategies and techniques to choose from, it can be easy to overlook the essential aspects of trading. So here to help you are my TOP 10 Trading Rules which you should follow regardless of what, how or when you are trading.
The Top 10 Trading Rules
- Only risk in capital and time what you can afford to lose.
- To start with, look to make money – not to go all out to be right all the time.
- Don’t trade without a detailed trading plan & strategy. Predefine : entry, exit, in-trade management processes – know your playing field.
- Always check the higher timeframes to check trend direction. Remember: the trend is your friend.
- Trade the right timeframes for the right instrument e.g. don’t try to be a scalper of the Live Cattle market!
- Be patient – don’t move stops so tight that your trade doesn’t have a chance. Do not tinker with trades due to boredom or excitement. Let them run their cause from your initial point of view / strategy/ trading plan.
- Get the right trading set up in place before you start to trade. Don’t rush in.
- Obey the Risk & Trade Management trading rules.
- Always review your performance to discover strengths and weaknesses. Look at risk/ reward ratios at least weekly to start with– act on these findings.
- Stick to the trading rules!