10 Essential Trading Rules of Professional Traders, Especially Number 2!

Have you ever wondered how professional traders see the market differently?

How do they continue to make exceptional returns day after day, while 90% of retail traders lose money on a daily basis?

Here are my top 10 trading rules I developed, after over 10,000 hours of trading professionally, and I hope that this will help you take your trading to the next level.

Good luck! 😀

Professional trading 4

1. Always be disciplined

  • Follow your plan and rules
  • Do not be swayed by your emtions to act otherwise
  • Do not create excuses to break the rules – this time is NOT different

2. Plan the trade, trade the plan

  • Always cut your losses according to plan
  • Always cut your profits run according to plan
  • Separate your planning from your execution

3. Expect losses

  • Losses are part of trading – accept them. This will reduce emotional resistance when the time comes to do so.
  • Do not take a trade unless you are willing to accept the risk (possibility of loss) that accompanies the trade
  • Accept that you willlose money on some trades
  • Take your losses easily when they come
  • Do not be stubborn and bend your rules

4. Manage your emotions

  • When i doubt or unsure, get out!
  • Always analyze objectively
  • Clear all positions to have a neutral frame of mind
  • Do not act based on greed or fear

5. Focus on trading well

  • The goal of a trader is to make the best trades
  • Money will naturally follow
  • If you focus on money, emotions will get in the way and you will not be able to make the best trades

6. Do not overtrade

  • Be patient. Do not rush into a trade.
  • Do not trade when there are no good setups
  • Do not try to be in the market all the time
  • It is better to miss a boat, than to leave on one full of holes
  • One good trades is better than three bad trades
  • “There is a time to go long, a time to go short,and a time to go fishing.” – Jesse Livermore

7. Trade what you see, not what you think

  • Don’t concern yourself with why things are happening
  • Observe what is happening, and act on it
  • Ignore the noise – tips, rumours, news, speculations, etc
  • Anticipate the future, but trade in the present
  • Markets are never wrong, opinions are

8. The trend is your friend

  • Don’t enter just because it looks “overbought” or “oversold”
  • Don’t try to catch a falling knife
  • The easiest money is made trading with the trend
  • Make sure you have an edge before you enter the market
  • Put as many factors in your favour as possible

9. Do not repeat your mistakes

  • Keep good records of your trades and thought process
  • Analyze your mistakes, then move on
  • Do not make the same mistake again
  • Continuously improve yourself

10. Have realistic expectations

  • Do not try to make stellar returns overnight
  • Aim for small consistent returns over a period of time
  • Do not expect to become an expert overnight
  • Trading takes time to build experience

Download free e-book: The 7 Best-Kept Secrets of Professional Traders

For more tips on how to take your trades to the next level, download a free copy of “The 7 Best-Kept Secrets of Professional Traders”.
http://synapsetrading.com/resources/the-7-best-kept-secrets-of-professional-traders/

 

ALL YOU NEED TO KNOW ABOUT TRADING!

Hi, Spencer here! 😀

After making my first million at 28, and trading & teaching across 50+ countries, I have consolidated my knowledge and experience to create the most comprehensive & practical guides for profitable trading, compiled from thousands of books, websites, courses, and interviews with professionals.

As a former professional trader in private equity and proprietary funds, I have over 15 years of market experience, and have been featured on more than 20 occasions in the media.
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