Most important trading rule?

mr tubbs said:

i am new to the forum, and was just interested to hear what other fx traders believe to be their most important trading rule?

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The most important trading rules are,

1. Don't lose your money

2. Remeber the first rule

and from this develop your risk management a.k.a. money management in order to survive and succeed in forex trading!!

Don't risk more money in any speculation than you feel quite comfortable losing.

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+1
It is common for people to be drawn in by the huge leverage available in forex, and then get wiped out when that leverage goes 'the bad way'.

Learn from your mistakes.

And even better, learn from the mistakes of others.

Listen to what the market is saying about others, not what others are saying about the market.

Thanks Wyckoff

Have a strategy that will make money...rather than some half baked idea that you think or wish will make money.

forexdiscussion said:

The most important trading rules are,

1. Don't lose your money

2. Remeber the first rule

and from this develop your risk management a.k.a. money management in order to survive and succeed in forex trading!!

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So the most successful trading strategy is to stick my money under the bed, then?
:

1. Set realistic investment goals or targets.
2. Don't get caught up in trying to predict the market's direction.
3. Realise your profits once you have reached your goal.

•Buy rising stocks and sell falling stocks.
•Do not trade every day of every year. Trade only when the market is clearly bullish or bearish. Trade in the direction of the general market. If it's rising you should be long, if it's falling you should be short.
•Co-ordinate your trading activity with pivot points.
•Only enter a trade after the action of the market confirms your opinion and then enter promptly.
•Continue with trades that show you a profit, end trades that show a loss.
•End trades when it is clear that the trend you are profiting from is over.
•In any sector, trade the leading stock - the one showing the strongest trend.
•Never average losses by, for example, buying more of a stock that has fallen.
•Never meet a margin call - get out of the trade
•Don't become an involuntary investor by holding onto stocks whose price has fallen.
•A stock is never too high to buy and never too low to short.
•Markets are never wrong - opinions often are.
•The highest profits are made in trades that show a profit right from the start.
•No trading rules will deliver a profit 100 percent of the time.




stops should always be price action based , strategic and not just some set number

best trades are in primary trend direction , bigger slices of cake

the best trader has no Bias, goes long or short without a single ounce of bias and his decision is 100% based on price action

sometimes the best trade is no trade , when setups arent met and system requirements arent fullfilled dont make a trade where one doesnt exist

no system is infallible so never go all in on any trade