- How To Avoid Getting Stopped Out – Part 1Posted 62 days ago
Fourteen Laws To Prosper By
IMPORTANT NOTE: Many traders will read the following and say, “yeah I already know that”. They will gloss over it and not put any more thought into it. I can however tell you with certainty that if you don’t live by the above rules you will have a hard time succeeding in the long run. I have seen countless traders blow out their accounts because they ignored one or more of the above principles.
1. Don’t trade when you are tired, sick, anxious or worried.
2. Don’t make your trading system more complicated then it is.
3. Make sure you paper-trade before you risk real money.
4. Don’t get greedy. As they say… “Hogs get fed, pigs get slaughtered.”
5. Always put a protective stop in place.
6. Losses are part of this game and you must be able to accept them. If you can’t stomach the idea of losing money, then don’t trade.
7. Decide on your exit strategy, before you enter the trade. In other words, where and how will you get out? Also decide how many contracts you will trade and whether you will scale out of your trade. The bottom-line is make sure you plan your trade and trade your plan!
8. Don’t bail out of your trades prematurely. Ride them until you hit your target.
9. If the risk is too big on a trade then don’t take it.
10. Don’t force trades that aren’t there. There is no need to rush into a trade as there are always new ones forming.
11. Don’t sit at your PC more than 90 minutes without a break. You need to get up and stretch and move around. This will keep your mind sharp and focused. It will also relieve trading stress and tension.
12. The hardest time to take a trade is when you have just had a few losers in a row. This however is exactly the time you need to jump right back in there as odds are that the next one will be a winner.
13. Don’t trade if you are using the rent money or are down to your last few dollars. Trading with “scared money” never works out.
14. Don’t be unrealistic. While trading can provide some amazing returns, don’t expect to turn $2000 into $1,000,000 in a year. (Please read rule #4.)
Peace & Prosperity!