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51 Professional Trading Tips

  
  Education
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1. Trading is simple, but it is not easy.

2.  When you get into a trade watch for the signs that you might be wrong.

3.  Trading should be boring.

4.  Amateur traders turn into professional traders once they stop looking for the “next great indicator.”

5.  You are trading other traders, not stocks or futures contracts.

6.  Be very aware of your own emotions.

7.  Watch yourself for too much excitement.

8.  Don’t overtrade.

9.  If you come into trading with the idea of making big money you are doomed.

10.  Don’t focus on the money.

11.  Do not impose your will on the market.

12.  The best way to minimize risk is to not trade when it is not time to trade. 

13.  There is no need to trade five days a week.  

14.  Refuse to damage your capital.

15.  Stay relaxed.

16.  Never let a day trade turn into an overnight trade.

17.  Keep winners as long as they are moving your way.

18.  Don’t overweight your trades.

19.  There is no logical reason to hesitate in taking a stop.

20.  Professional traders take losses because they trust themselves to do what is right.

21.  Once you take a loss, forget about it and move on.

22.  Find out what loss parameters work best for your setup and adjust them accordingly.

23.  Get a feel for market direction by “drilling down” (looking at multiple time frames).

24.  Develop confidence by knowing and executing your trade setups the same way every time.

25.  Don’t be ridiculous and stupid by adding to losers.

26.  Try to enter a full size position right away.

27.  Ring the register and scale out of your position.

28.  Adrenaline is a sign that your ego and your emotions have reached a point where they are clouding your judgment.

29.  You want to own the stock before it breaks out and sell when amateurs are getting in after the move.

30.  Embracing your opinion leads to financial ruin.

31.  Discipline is not learned until you wipe out a trading account.

32.  Siphon off your trading profits each month and stick them in a money market account.

33.  Professional traders risk a small amount of money on their equity on one trade.

34.  Professional traders focus on limiting risk and protecting capital.

35.  In the financial markets heroes get crushed.

36.  Stick to your trading rules and you will never blow up your trading account.

37.  The market can reinforce bad habits.

38.  Take personal responsibility for each trade.

39.  Amateur traders think about how much money they can make on each trade.  Professional traders think about how much money they can lose.

40.  At some point all traders realize that no one can tell them exactly what is going to happen next in the market.

41.Losing trades don’t diminish you as a person. You’re also not your winning trades. They are just by-products of the business you’re in.

42.Act in your best interest – placing a trade because you’re afraid of missing out on a big move is NOT acting in your best interest.

43.Flawless execution comes from forming a habit. A habit is formed when it is repeated over and over again. Start practicing.

44.Don’t let personal/external factors affect the trading for thou judgment is clouded. Let the market show you what to do. Always.

45.Make sure your trading goals are 1) realistic, 2) attainable, 3) measurable. If they don’t meet these criteria, then the goal is nothing.

46.You want to own the stock before it breaks out, then sell it to the momentum players after it breaks out. If you buy breakouts, realize that professional traders are handing off their positions to you in order to test the strength of the trend. They will typically buy it back below the breakout point—which is typically where you will set your stop when you buy a breakout. (In case you ever wondered why you get stopped out on a lot of “failed” breakouts).

47.Amateur traders always think, “How much money can I make on this trade!” Professional traders always think, “How much money can I lose on this trade?” The trader who controls his or her risk takes money from the trader whose head is in the clouds.

48.. Siphoning out your trading profits each month and sticking them in a money market account is a good practice. This action helps to focus your attitude that this is a business and not a place to seek thrills. If you want an adventure, go live in Minnesota for a winter. If you want excitement, deliberately forget your anniversary. Just don’t trade.Adrenaline is a sign that your ego and your emotions have reached a point where they are clouding your judgment. Realize this and immediately tighten your stop considerably to preserve profits or exit your position.

49.

50.Averaging down on a position is like a sinking ship deliberately taking on more water.

51.You Need MONEY -MIND-METHOD & Target to get success in Trading.If u miss any one of them…its my challenge to anybody in World …U will never ever be succesful !!

Updated at 22:45/07th Sept/Baroda

40 Rules for Traders

  
  Education
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1. Trading is simple, but it is not easy.
2.  When you get into a trade watch for the signs that you might be wrong.
3.  Trading should be boring.
4.  Amateur traders turn into professional traders once they stop looking for the “next great indicator.”
5.  You are trading other traders, not stocks or futures contracts.
6.  Be very aware of your own emotions.
7.  Watch yourself for too much excitement.
8.  Don’t overtrade.
9.  If you come into trading with the idea of making big money you are doomed.
10.  Don’t focus on the money.
11.  Do not impose your will on the market.
12.  The best way to minimize risk is to not trade when it is not time to trade. 
13.  There is no need to trade five days a week.  
14.  Refuse to damage your capital.
15.  Stay relaxed.

16.  Never let a day trade turn into an overnight trade.17.  Keep winners as long as they are moving your way.
18.  Don’t overweight your trades.
19.  There is no logical reason to hesitate in taking a stop.
20.  Professional traders take losses because they trust themselves to do what is right.
21.  Once you take a loss, forget about it and move on.
22.  Find out what loss parameters work best for your setup and adjust them accordingly.
23.  Get a feel for market direction by “drilling down” (looking at multiple time frames).
24.  Develop confidence by knowing and executing your trade setups the same way every time.
25.  Don’t be ridiculous and stupid by adding to losers.
26.  Try to enter a full size position right away.
27.  Ring the register and scale out of your position.
28.  Adrenaline is a sign that your ego and your emotions have reached a point where they are clouding your judgment.
29.  You want to own the stock before it breaks out and sell when amateurs are getting in after the move.
30.  Embracing your opinion leads to financial ruin.
31.  Discipline is not learned until you wipe out a trading account.
32.  Siphon off your trading profits each month and stick them in a money market account.
33.  Professional traders risk a small amount of money on their equity on one trade.
34.  Professional traders focus on limiting risk and protecting capital.
35.  In the financial markets heroes get crushed.
36.  Stick to your trading rules and you will never blow up your trading account.
37.  The market can reinforce bad habits.
38.  Take personal responsibility for each trade.
39.  Amateur traders think about how much money they can make on each trade.  Professional traders think about how much money they can lose.
40.  At some point all traders realize that no one can tell them exactly what is going to happen next in the market.

"Some Rules for Living Applied to Trading"

  
  Education
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I ran across these rules for living, and thought they apply beautifully to the process of trading successfully.  They are as follows:

  1. Show up.
  2. Pay attention.
  3. Live your truth.
  4. Do your best.
  5. Don’t be attached to the outcome.

Show up.  Woody Allen has said 90% of the story is showing up.  And I think that can be true for trading.  Showing up means being prepared and ready before the market opens.  It means getting your entry and exit orders in the market in a timely fashion.  You’ve done your research, and you’re clear about your intentions.

Pay attention.    Watch the price action.  Be cognizant of what your chosen indicators are saying.  Know what news is breaking, and watch the market’s reaction to the news.  Be alert to twists and turns in market direction.  Don’t wander off mentally or physically.

Live your truth.  Your truth could be fundamental or technical or a combination of the two.  But if you don’t trade in accordance with your guidelines, you can get yourself on the wrong side of the situation and yourself.  Be who you say you are as a trader.  Are you honest, perceptive, courageous, steady, and disciplined?  Are you trading in the manner you have chosen or committed to trade.

Do your best.  Honestly, all you can do is your best.  But your best can get better as you practice and learn.  Learn from your mistakes, and forgive yourself past digressions.  Each day is a new day, and each day brings new opportunities.  It’s your job to capture what you can of the opportunities even as you rigorously protect your capital.

Don’t be attached to the outcome.  This is the hard part, and this is the essential part.  The results of any given trade or trading day are really not indicative of whether or not you will be profitable.  One trade or day is simply not the measure of success, and is really irrelevant.  If you’re showing up, and paying attention, and living your viable truth, and doing your best, you can accept whatever outcome develops.  Of course, if the outcome is disastrous over time, you need to go back to the drawing board and develop better methods.

40 Trading Lessons

  
  Education
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1. Trading is simple, but it is not easy.

2.  When you get into a trade watch for the signs that you might be wrong.

3.  Trading should be boring.

4.  Amateur traders turn into professional traders once they stop looking for the “next great indicator.”

5.  You are trading other traders, not stocks or futures contracts.

6.  Be very aware of your own emotions.

7.  Watch yourself for too much excitement.

8.  Don’t overtrade.

9.  If you come into trading with the idea of making big money you are doomed.

10.  Don’t focus on the money.

11.  Do not impose your will on the market.

12.  The best way to minimize risk is to not trade when it is not time to trade. 

13.  There is no need to trade five days a week.  

14.  Refuse to damage your capital.

15.  Stay relaxed.

16.  Never let a day trade turn into an overnight trade.

17.  Keep winners as long as they are moving your way.

18.  Don’t overweight your trades.

19.  There is no logical reason to hesitate in taking a stop.

20.  Professional traders take losses because they trust themselves to do what is right. (more…)

You Might be a Trend Following Trader if…..

  
  Education
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Trend Follower“Trend  followers use reactive technical analysis. Instead of trying to predict a market direction, their strategy is to react to the market’s movements whenever they occur. This enables them to focus on the market’s actual moves and not get emotionally involved with trying to predict direction or duration.” -Michael Covel/ Trend Following

You Might be a Trend Following Trader if…..

  1. …you love buying break outs above resistance and new all time highs.
  2. …big trends make you happy not angry.
  3. …you do not trade the concept of something being overbought you just use a trailing stop.
  4. …your trading decisions are based on what is happening now, not your opinions, your fears of what will happen, or your hopes of what will happen later.
  5. …you risk a little capital over and over again to make a lot of capital eventually.
  6. …you are great at letting your winners run.
  7. …trend followers don’t need a story they follow actual price action.
  8. …you look for longs in a bull market and shorts in a bear market you are likely a trend follower.
  9. …higher highs and higher lows are one of your best indicators to go long.
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