In trading everyone should have some rules

In trading everyone should have some rules. And you have to stick to those rules. Like there should have been a fixed risk reward ratio. It could be 1:1 or 1:2 according to your strategy. When you have risk reward ratio, you will open trade if the criteria is met. Sometimes we may need to take instant decision depending on the market situation. But rules should be there. That's the reason discipline is the key to success here.

I completely agree with you. Build a rule and follow the rule without any emotional attachment.

totally agree..one shud set rules for his/her trading

Well said, formulating rules aids a trader to achieve his targets with much more ease. Otherwise, its hard to achieve the results keeping in mind the effect of psychology.

Trade management is very important. You have to be disciplined and organized in your trading. A solid trading plan, money management, risk management, and risk reward ratio all should have been specified. One of the reasons Most traders fail because they are not disciplined in their trading.

Yes, in trading everyone should have some rules and their own strategies in order to have regular gains. One should follow their rules and strategy and take decisions accordingly. Following these rules manages your emotions and discipline.

Everyone works differently, so if one trader likes to follow a rule, the other might not. It is all about the mindset but I do agree that rules are good for maintaining discipline.

Two things I have learned that we should not do. One is revenge trading. After a loss trade, to open many trades to recover it quickly. Second is not waiting enough to set up to come. It means sometimes I open trade to early in fear of losing an opportunity.

Michihito posted:
Trade management is very important. You have to be disciplined and organized in your trading. A solid trading plan, money management, risk management, and risk reward ratio all should have been specified. One of the reasons Most traders fail because they are not disciplined in their trading.

It is so important for traders to never come under the influence of their emotions. Sometimes it is good to take a step back and analyse. If you do things in a hurry then obviously you would lose money because you are not calculating risk associated with that trade.

Yes, having set the predefined rules along with proper strategy planning can be very useful in making the decision when it comes to trading. You just need to know and make sure if the rules are correct or not.

Harshalgibbs posted:

Michihito posted:
Trade management is very important. You have to be disciplined and organized in your trading. A solid trading plan, money management, risk management, and risk reward ratio all should have been specified. One of the reasons Most traders fail because they are not disciplined in their trading.

It is so important for traders to never come under the influence of their emotions. Sometimes it is good to take a step back and analyse. If you do things in a hurry then obviously you would lose money because you are not calculating risk associated with that trade.

There should be rules and discipline in trading because without it it’s impossible to succeed. Investing brashly with unrealistic expectations would bring you on the road literally. At the end your take away profit is the sum total of the losses and gains. It is not like one profit means you conquer everything.

UweMoench posted:
In trading everyone should have some rules. And you have to stick to those rules. Like there should have been a fixed risk reward ratio. It could be 1:1 or 1:2 according to your strategy. When you have risk reward ratio, you will open trade if the criteria is met. Sometimes we may need to take instant decision depending on the market situation. But rules should be there. That's the reason discipline is the key to success here.

Totally agree, if you have rules and follow them youre a long way to being successful

Marksteve posted:

Harshalgibbs posted:

Michihito posted:
Trade management is very important. You have to be disciplined and organized in your trading. A solid trading plan, money management, risk management, and risk reward ratio all should have been specified. One of the reasons Most traders fail because they are not disciplined in their trading.

It is so important for traders to never come under the influence of their emotions. Sometimes it is good to take a step back and analyse. If you do things in a hurry then obviously you would lose money because you are not calculating risk associated with that trade.

There should be rules and discipline in trading because without it it’s impossible to succeed. Investing brashly with unrealistic expectations would bring you on the road literally. At the end your take away profit is the sum total of the losses and gains. It is not like one profit means you conquer everything.

Trading rules can only be made when you know about the trading scenario and what is the actual meaning of reckless trading. I have done this in demo trading on Fxview and CMC Markets where I just looked at candlestick charts and haphazardly traded. It resulted obviously in loss of money. I learnt my lessons and the meaning of brash trading on demo, doing better on live now.

Harshalgibbs posted:

Marksteve posted:

Harshalgibbs posted:

Michihito posted:
Trade management is very important. You have to be disciplined and organized in your trading. A solid trading plan, money management, risk management, and risk reward ratio all should have been specified. One of the reasons Most traders fail because they are not disciplined in their trading.

It is so important for traders to never come under the influence of their emotions. Sometimes it is good to take a step back and analyse. If you do things in a hurry then obviously you would lose money because you are not calculating risk associated with that trade.

There should be rules and discipline in trading because without it it’s impossible to succeed. Investing brashly with unrealistic expectations would bring you on the road literally. At the end your take away profit is the sum total of the losses and gains. It is not like one profit means you conquer everything.

Trading rules can only be made when you know about the trading scenario and what is the actual meaning of reckless trading. I have done this in demo trading on Fxview and CMC Markets where I just looked at candlestick charts and haphazardly traded. It resulted obviously in loss of money. I learnt my lessons and the meaning of brash trading on demo, doing better on live now.

Another thing I would say is that ya I do say that trading rules are important but they should not be shackles for the experimentation in the markets. They should just be guides to not go down the cliff. Something that would refrain a trader from treating trading as gambling for short wins in the markets.

Many novice traders think that the brokers are the key to profit but that is not the case. When I read about the trading experiences of the other traders from social trading brokers such as etoro I made rules from their experience, because I didn't want to make the same mistakes. I made a solid trading plan which I use for trading on fxview now. I follow everything to the T - entry, exit, stop loss, profits, etc.

Of course, there are some rules in trading that every trader should follow. If you can't maintain discipline, plan money management, risk management, etc., it is never possible to follow those rules.

AliaDare posted:
Of course, there are some rules in trading that every trader should follow. If you can't maintain discipline, plan money management, risk management, etc., it is never possible to follow those rules.

True. Practice makes a man perfect. So, practice those rules as much as possible.

Trading without rules is like walking without a destination to reach. Setting rules is crucial in order to achieve trading goals and manage your capital.

There are rules and no rules in trading.
Everything in trading is trivial and incredibly complicated.
And that's why we love it so much and don't leave it, because there's always emotion and money.