In the world of trading, you have to follow a lot of rules. And we don’t only mean that rules set by the law and the Securities and Exchange Commission (SEC) when we say “rules.” We’re also talking about the adages and mantras you need to keep in mind if you want to be really successful. In short, there are golden Trading Strategies rules you must follow to be successful.
These trading rules do not necessarily come from any authority in trading. Rather, they got their “rule” status because of their proven effectiveness when it comes to beating or surviving the financial markets. So without further ado, here are some of the most important trading rules Withdrawal Methods you should follow to become a successful market trader.
Rule 1: Have a Trading Plan
A trading plan refers to your personal rules or market conditions that you take as your signal for an entry and exit trading point. Think of these as your criteria.
Having a trading plan means you have a plan of action which you will take if the set of criteria are met by the market. Even though coming up with an excellent trading plan means spending much time on formulating and exploring all avenues, you can easily see the benefit of having one set up once you ride the waves of the market.
Rule 2: Make it Your Business
For some traders, trading is merely another source of income which they can leave anytime they want or if they think they’re already gaining nothing from it. You shouldn’t adapt this way of thinking if you really want to be successful in trading.
You must approach trading like a full-time business, never like a hobby or a job. If you treat it like a hobby, you don’t have the real emotion of commitment. You feel like it’s just a passing fancy, thus you don’t give it your best shot. If you treat it like a job, it can be really frustrating most of the time, like any other kinds of jobs.
When you treat it like a business, you give it the dedication it deserves because every expense, losses, taxes, anxiety, stress, and, most importantly, rewards, will count towards one ultimate goal, which is to make your business as big as you want it to be.
Rule 3: Continue Learning
When you’re a trader, you need to bow down and be a student of the market. While it is true that you don’t have to have a shining degree from an Ivy League university, you still need to arm yourself with ample amount of knowledge in order to start with not the wrong foot in the market.
Think of trading as your continuing education, wherein you’re compelled to focus of garnering knowledge day by day. Each and every trade you win or lose gives you something to ponder about. And more importantly, as time goes by, you must learn from your own trading history more and more as you gain more and more knowledge.