Trading 101 Rules
(3-5 min read)
Here are some important aspects for each trader:
1. Looses
With our group,finding good trades is not an issue and success ratio of trades I shared with top traders is very high. It's what you do when you are wrong is all what matters. Risk management is paramount,respect your SL,never add to loosing position and do not get trapped.This is what will set you apart from mediocre traders. You can have 10 good trades and that one bad trade,where you broke your rules, will return you where you started.
You trade all summer and series of emotional trades with high leverage will destroy 3 month of your progress in one day. It is big wound and there are rules to prevent it. Some traders use 3-5% equity drawdown. They just walk away and come back next day when is reached.
Or you can apply rule of 3 loosing trades in the row,when they happen,you will do opposite of what emotional trader do. You will half your leverage for the rest of the day and you will not chase to make lost money back. If you loose another 2 trades, you do not continue trading that day and come back refreshed next day.
If you already know you are well perfoming trader most of the time, it's not wrong to do it as you know you will do far better next day just based on your statistics.
2. Trading Style
Trading is the journey of knowing yourself. When you trade for some time, you should already know what suits you best. Do not go against your temperament and personality.
If you do not feel comfortable scalping ,just focus on daytrading first. Know where are you strongest in your trading thanks to data you collect. If you perform a lot better in trading ranges, that should be your primary focus and so on
3. Discipline & Patience
It is going hand to hand with discipline. The more discipline you have in your life in general, the better your trading results can be. Discipline in trading means you will take trade when conditions are met, when you reach zone where you want to trade.
We had some no man's lands zones this week where I had no levels which meant I was not taking trades in that area, I was waiting when we reach my zone of interest.
So you truly need patience. I see many of you become a lot better traders when they started to be patient and not jumping to each low probability setup just to be in trade.
4. Preparation
It is everything in trading and it takes most of the time. Analyse market from higher timeframes into lower ones, mark your levels & zones. You are doing smaller trading plan when new day starts and you also need to do the major one at least once a week so you know overall context of the market and your trading ideas are not clashing with other timeframe traders.
Know your market well, the better you know your market,the bigger advantage you have against other market participants.
5. Bias & Expectations
You can have overall projection and expectancy from the market in terms of targets if you are in the trade already for your profit targets and so on but when conditions change, which can happen very fast, you need to remove your bias and trade what is on front of you in the charts and based on price action. As example, as we were approaching 41k support zone, youtubers and twitters gurus were overly bearish calling for break of 40k all day but if you were in that bias, you missed multiple strong bounces from powerful support. Price was definitely not following their expectations and bias,they shorted into support and got punished.
1. Looses
With our group,finding good trades is not an issue and success ratio of trades I shared with top traders is very high. It's what you do when you are wrong is all what matters. Risk management is paramount,respect your SL,never add to loosing position and do not get trapped.This is what will set you apart from mediocre traders. You can have 10 good trades and that one bad trade,where you broke your rules, will return you where you started.
You trade all summer and series of emotional trades with high leverage will destroy 3 month of your progress in one day. It is big wound and there are rules to prevent it. Some traders use 3-5% equity drawdown. They just walk away and come back next day when is reached.
Or you can apply rule of 3 loosing trades in the row,when they happen,you will do opposite of what emotional trader do. You will half your leverage for the rest of the day and you will not chase to make lost money back. If you loose another 2 trades, you do not continue trading that day and come back refreshed next day.
If you already know you are well perfoming trader most of the time, it's not wrong to do it as you know you will do far better next day just based on your statistics.
2. Trading Style
Trading is the journey of knowing yourself. When you trade for some time, you should already know what suits you best. Do not go against your temperament and personality.
If you do not feel comfortable scalping ,just focus on daytrading first. Know where are you strongest in your trading thanks to data you collect. If you perform a lot better in trading ranges, that should be your primary focus and so on
3. Discipline & Patience
It is going hand to hand with discipline. The more discipline you have in your life in general, the better your trading results can be. Discipline in trading means you will take trade when conditions are met, when you reach zone where you want to trade.
We had some no man's lands zones this week where I had no levels which meant I was not taking trades in that area, I was waiting when we reach my zone of interest.
So you truly need patience. I see many of you become a lot better traders when they started to be patient and not jumping to each low probability setup just to be in trade.
4. Preparation
It is everything in trading and it takes most of the time. Analyse market from higher timeframes into lower ones, mark your levels & zones. You are doing smaller trading plan when new day starts and you also need to do the major one at least once a week so you know overall context of the market and your trading ideas are not clashing with other timeframe traders.
Know your market well, the better you know your market,the bigger advantage you have against other market participants.
5. Bias & Expectations
You can have overall projection and expectancy from the market in terms of targets if you are in the trade already for your profit targets and so on but when conditions change, which can happen very fast, you need to remove your bias and trade what is on front of you in the charts and based on price action. As example, as we were approaching 41k support zone, youtubers and twitters gurus were overly bearish calling for break of 40k all day but if you were in that bias, you missed multiple strong bounces from powerful support. Price was definitely not following their expectations and bias,they shorted into support and got punished.
