Let’s glimpse into the basics and do not forget to use these rules. It’s proved - they do work!
TRADER’S RULES 1. Always work in the direction of the dominant trend 2. Find the strategy where you are most successful, namely the one that gives the minimum account drawdown 3. Reduce the number and size of transactions in case of losses, and vice versa 4. The main rule of profitable trading is control over losses 5. Plan ahead 6. At any time, assume that your plan is not working 7. Everything that happened is history. Focus on the future 8. Success in this business requires incredible concentration and mental costs. Learn to relax 9. Never allow your winning attitude to became unprofitable 10. If you have done something wrong, immediately close the position 11. If you do not see the possibilities – do not trade 12. Do not be a hero. Do not think that you know more than the market. Work with confidence, but always doubt yourself 13. Never overtrade 14. Do not take risks before and immediately after the release of important economic data. This is not the trading but the gambling 15. Avoid emotions 16. Use not just a price stop, but a time stop. If you are waiting for a breakthrough of the market, and it did not happen, close the position, even if it is in profit.
Agree with all points, but point 1 is controversial, my best trades were counter-trend, quick and powerfull. Off course building a strong case using EW and harmonics.
Alexander_Nikitin
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if you assume that your plan is not working every time you have drawdown you won't ever be confident in your plan. Doubts and self-sabotaging beliefs won't make you a consistently profitable trader.
Yabi
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Price fluctuates, events occur, large market participants actively mark prices up or down to accommodate their entries and exits. There is no perfection in the market. Stops, the friend.
djeniks
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Tracking your plan at each phase, you have the opportunity to rethink your previous decision in case if something went wrong.
Very efficient rule cause nobody's perfect!)
Alexander_Nikitin
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If you have done a backtesting of some trading plan... Let's say you took a 3-year period (m5 TF)... At the end it showed positive expectancy. You saw a steadily rising equity curve.
To repeat the results in real trading you are to do exactly the same you've done on backtesting. The only thing you are to bother is executing trades as similar to the way you executed them on backtesting as possible. If you have done backtesting, you know that a loss trade doesn't mean a mistake. Trades can be wins or losses. It's trading. If you think that you loose because you are doing mistakes it only means that you don't have a tested trading plan. Traders who did backtesting don't revise rules even if they have 10 losses in a row. If trader has doubts about reliability of some rules in his trading plan he will do backtesting and see if they are reliable or not. But when backtesting is over no changes in rules are possible. IMHO.