When I started trading a couple of years ago I didn’t know anything about having rules or boundaries. I bought and sold stocks as I pleased. Luckily in the beginning I didn’t get burned or wipe my account out. Instead I traded small and learned from my mistakes. As time went on I started trading with more shares and risked more money, and the result was either bigger gains or bigger losses. Now I trade pretty much full time and I have made MANY mistakes and learned the hard way. I now understand why there are rules that you must follow and stay disciplined in order to become successful as a trader. I have made money trading but at the same time I have lost lots of money to because I don’t follow my own rules. Trust me, most all traders will go through this and most of them will learn the hard way! You won’t start following your own rules until you get burned, lose a few thousand dollars because you got greedy or didn’t stay disciplined or you were up a few thousand in the morning and gave it all back by lunch time.. … that’s right these things happen to all traders but the good news is you can prevent it. The only way to do so is TO FOLLOW YOUR OWN RULES!!!!
Here are a list of rules I have complied that I TRY to follow…..that right “TRY” because I do break my own rules from time to time but the key is staying in the game and progressing forward. Trading is very emotional so its easy to break a rule here and there, stay focused and understand how to play the game and you will be successful.
1.) PATIENCE, PATIENCE, PATIENCE
2.) DON’T OVER TRADE
3.) DONT GET GREEDY
4.) STAY IN THE GAME
5.) THERE WILL ALWAYS BE ANOTHER OPPORTUNITY
6.) FOLLOW THE TREND
7.) BUILDING YOUR ACCOUNT TAKES TIME, IT DOESN’T HAPPEN OVERNIGHT
8.) WAIT FOR YOUR SETUP, LET THE TRADE COME TO YOU
9.) STOP TRADING ONCE YOU MAKE YOUR GOAL. STAY DISCIPLINED
10.) ALWAYS TAKE PROFITS
Chili Pharmer 