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5 Golden Rules of Trading

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  • 5 Golden Rules of Trading

    Dear Traders,

    Here are the 5 Golden Rules of Trading. Which one is the most important in the success of the traders?

    1. Invest in the direction of the Trend!
    2. Cut Losses Quickly.
    3. Let Profits Grow…
    4. Diversify.
    5. Manage Risk.

    Regards
    mark04

  • #2
    Re: 5 Golden Rules of Trading

    Originally posted by mark04
    Dear Traders,

    Here are the 5 Golden Rules of Trading. Which one is the most important in the success of the traders?

    1. Invest in the direction of the Trend!
    2. Cut Losses Quickly.
    3. Let Profits Grow…
    4. Diversify.
    5. Manage Risk.

    Regards
    mark04
    I vote for the "1. Invest in the direction of the Trend!". We just have to know the trend direction...
    Cheers,
    Tick

    Comment


    • #3
      Re: 5 Golden Rules of Trading

      after the trade is before the trade ...

      Comment


      • #4
        Re: 5 Golden Rules of Trading

        hi dude,

        i am agree with the five rules of trading..
        but i want to mention a latest software i.e. use of excels via meta trader 4 in this also to make the forex trading more successful than before. if the all strategies will go in the right position then it will be more easy to understand and win the forex trading..


        Have a nice time!!!

        regards,
        Ivan

        Comment


        • #5
          Re: 5 Golden Rules of Trading

          thank you indo-investasi... now i become a better trader...
          Last edited by dr0o69; 07-08-10, 00:35.

          Comment


          • #6
            Re: 5 Golden Rules of Trading

            Hi all,

            I have one more rule:

            6. Never forcast the market.

            Comment


            • #7
              Re: 5 Golden Rules of Trading

              How about

              1. try to find know earlier when market will break the trend
              2. cut profit earlier
              3. don't let your profit being change to be loss
              4. don't diversify
              5. and take your own risk

              Comment


              • #8
                Re: 5 Golden Rules of Trading

                Originally posted by mark04
                1. Invest in the direction of the Trend!
                2. Cut Losses Quickly.
                3. Let Profits Grow…
                4. Diversify.
                5. Manage Risk.
                I heard so many many people suggest the same ideas.
                Those quotes are likely simple to read/write. But do we ever know how to use those rules? Or do we really know what the meaning of those rules ?

                The questions are:
                1. How do you know exactly what trend is now developing if you are in the middle of trading ?
                2. How do you cut losses quickly ?
                3. How much we let the profit grow ?
                4. How we divesify our strategy ?
                5. How to manage our risk ?


                Comment


                • #9
                  Re: 5 Golden Rules of Trading

                  Just my opinions


                  The questions are:
                  1. How do you know exactly what trend is now developing if you are in the middle of trading ?
                  Looking at smaller timeframes
                  2. How do you cut losses quickly ?
                  Tricky, transmitted stop levels are bad so scripts are needed, but I guess your question is more about determining stop levels. Formulas that determine the price that would end a move in a trend or pivot in a swing are many and varied. This is an area in which comfort is key and you have to just see which provides that.
                  3. How much we let the profit grow ?
                  Use comfortable formula just described.
                  4. How we divesify our strategy ?
                  Trend trade very long term, swing short tem, and use hedge type orders each with different account.
                  5. How to manage our risk ?
                  For me just understanding rules then use variations in monte carlo to provide assortment of levels to choose comfort level.

                  Comment

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