Hey everyone !
Aside from my degree in corporate finance from the Columbia Univesity in New York City, i was honored to participate in trading classes of the New York institute of Finance, and also talking with several really famous traders.
Here are 10 rules that I have been able to put together during my learning path and that serves me on a daily basis. I wanted to share it with you.
Don't forget to give a thumbs up!
1. Always be disciplined
- Follow your plan and rules
- Do not be swayed by your emotions 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 let your profits run according to plan
- Separate your planning from your execution
3. Expect losses
- Losses are part of trading – accept them.
- Do not take a trade unless you are willing to accept the risk (possibility of loss)
- Accept that you will lose money on some trades
4. Manage your emotions
- 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
7. Trade what you see, not what you think
- Don’t concern yourself with why things are happening
- 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
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 incredible returns overnight
- Aim for small consistent returns over a large period of time (steady and continual growth)
- Do not expect to become an expert overnight
- Trading takes time to build experience
Aside from my degree in corporate finance from the Columbia Univesity in New York City, i was honored to participate in trading classes of the New York institute of Finance, and also talking with several really famous traders.
Here are 10 rules that I have been able to put together during my learning path and that serves me on a daily basis. I wanted to share it with you.
Don't forget to give a thumbs up!
1. Always be disciplined
- Follow your plan and rules
- Do not be swayed by your emotions 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 let your profits run according to plan
- Separate your planning from your execution
3. Expect losses
- Losses are part of trading – accept them.
- Do not take a trade unless you are willing to accept the risk (possibility of loss)
- Accept that you will lose money on some trades
4. Manage your emotions
- 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
7. Trade what you see, not what you think
- Don’t concern yourself with why things are happening
- 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
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 incredible returns overnight
- Aim for small consistent returns over a large period of time (steady and continual growth)
- Do not expect to become an expert overnight
- Trading takes time to build experience