We have been talking a lot about rules that we are to follow. But if we are to follow rules on our level, imagine how much rules are followed by those who have already grown to professional level! Boy, that is probably hard to even remember all of those.
But do not worry. Even though we are still on our way to being pros we can already start living according to their trading rules. After all that, adaptation is going to be easier for us when we get there.
So. What are the rules that professional traders use and follow? The first part of the discussion can be foundhere. And we are keeping on with it.
11. there is no ‘getting back’ at the market.
12. Early warnings can tell you a lot.
13. Too many tools.
14. Think and learn.
15. Stop looking for a secret.
16. Turn your financial life around.
17. Stop thinking you are the pro.
18. Do not overcomplicate stuff.
19. Get used to losses.
20. Beware of your own body.
11. there is no ‘getting back’ at the market.
If you lost a trade the best thing for you to do is to step back and accept the fact of the loss. Do not trade out of the feeling of revenge. When you feel angry and frustrated after the loss you are just getting a very clouded judgement. And as we know trading with a clouded view is only going to bring you more losses.
12. Early warnings can tell you a lot.
If your trade is going just fine – almost perfect in fact – you need to be on the watch out for any kind of retracement. As soon as you see the signs for the fall in the nearest future – run for your life. These early signs can be very helpful in determining when you should exit your trade. But we are going to talk about them later.
13. Too many tools.
Trading tools are a great thing. They help us in a lot of ways and they can tell us a lot about a trade. But using too many of them is going to rid you of that valuable experience that you have been getting over the years of trading. Trading signals and one or two indicators should be enough for your clear vision.
14. Think and learn.
This is going straight out of our previous entry. You need to think and make decisions with your head. You are to learn to think and to trade based on your own judgement. Also do not try and copy someone else’s strategy. Be your own trader – make others come to you for advice. Pros are all about that.
15. Stop looking for a secret.
Looking for a secret formula to success – what are you a trader or an alchemist? Understand this – when it comes to trading there is no secret formula. Only time and energy – a lot of them – invested into trading – that is what counts.
16. Turn your financial life around.
Most of the people are used to living paycheck to paycheck. That makes us think that out world can be rewarded instantly. But as we already know in trading it is quite far away from the truth. In trading hard work doesn’t pay off instantly. It may take weeks or even months before you see your first more or less serious gain.
17. Stop thinking you are the pro.
Pros never boast to themselves. They never think that they are going to succeed before they have already closed a successful trade. Never celebrate prematurely – as we know that never ends well.
18. Do not overcomplicate stuff.
KISS – Keep it Simple, Stupid. Can’t say it better that this.
19. Get used to losses.
You need to understand – no matter how good and professional you are you are never going to escape losses. And the sooner you make you piece with it the better it is for you. The sooner that happens the sooner you are going to be able to focus on gains and not losses. After all – that is why we are here.
20. Beware of your own body.
Yes, yes. As weird as that might sound, you need to be aware of what happens in your body when you lose or win – it releases hormones. These hormones are addictive. Why do you think people jump with the parachute or dive with the sharks over and over again? Adrenaline. And we are under the same risk of addiction. Be cold and do not let your hormones rule your actions.
Following these rules even if you are still not a professional trader is going to help you get to your goal faster and with less bumps.
