# Most important trading rule?



## mr tubbs (28 December 2010)

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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## pixel (28 December 2010)

*Re: 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?



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


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## Vicki (28 December 2010)

*Re: trading rule?*

I'm not the most qualified person to give advice.

But I think the number one consideration of any trading plan [as far as I now realise]
Would be capital preservation..i.e. Keeping your losses at 1-2% or less, of your trading capital.

Beyond that, well I'll leave it to the more experienced to elaborate.

Vicki


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## explod (28 December 2010)

*Re: trading rule?*

(1) When in doubt get out.

(2) never put your money into any investment that you do not fully understand.   

(3) never put money in that you cannot afford to lose.

Sorry cant pick a single one apart, they are clost tol equal.


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## Market Depth (28 December 2010)

*Re: trading rule?*

1. Practice you plan
2. Trade the trend (No use going short when the market is going long)
3. Don't chase price, either up or down if going short, let price come to you.
4. Keep it simple, don't clutter your thinking with so many indicators, that get you confused.
5 Cut your loses early, small amounts of money are easier to win back
6 Use a stop loss and trailing stops
7 Learn how to short
8 Don't try and trade every opportunity
9 look at one set of pairs at one time and learn to trade that pair perfectly.
10 The FX trades 24/5 so get some sleep


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## Market Depth (28 December 2010)

*Re: trading rule?*

Several more,

11. Be patient
12. Have a profit target
13. Set goals, and reward yourself when you reach them


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## TulipFX (29 December 2010)

Control the only thing you can in a trade - the amount you risk.

Do not risk more than 5% of your account on any one trade unless you want to be reckless.


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## Gringotts Bank (29 December 2010)

Learn about intuition and gut feel.  Learn how to use yours.  

Learn about core beliefs.

Whether you win or lose, it's simply is a reflection of your deepest subconscious beliefs.  The most powerful of these beliefs relates to the idea of worthiness.

If you have all this working for you, you can literally bet the farm on on black and come out a winner (not that i'm advising that, but you catch my drift hopefully).  The trick is knowing when it's all working, and upping your stake size accordingly.


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## nunthewiser (29 December 2010)

sorry to state the obvious, but thought i,d better before it gets lost in all this hippy stuff.

MONEY MANAGEMENT.

Thankyou 

avaniceday


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## professor_frink (29 December 2010)

Gringotts Bank said:


> Learn about intuition and gut feel.  Learn how to use yours.
> 
> Learn about core beliefs.
> 
> ...




That would have to be quite possibly one of the least useful responses I think I've ever seen on an internet forum

Most important rule for me - it's a business, treat it as such.

leave the gut feel to the quacks, entrail readers and astrologers.


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## nukz (29 December 2010)

As far as forex goes, i woudn't trade any currency that you have no idea about(some currency's have trading patterns). 

At the same time as my previous point, don't always take technical analysis as gospel. 

Don't put in more than your willing to loose is always important. This is important no matter what you trade.


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## Gringotts Bank (29 December 2010)

edit:  you know fink is right.  

Forget what I said.  I must have been on drugs.


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## professor_frink (29 December 2010)

Gringotts Bank said:


> edit:  you know fink is right.
> 
> Forget what I said.  I must have been on drugs.




There's an 'r' in there buddy

I'll wake up one day I suppose, till then I'll just keep running tests to try and refine my models and settle for the 20%, or whatever it is you think I might be capable of.


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## Gringotts Bank (29 December 2010)

There's an art to trading which none of you seem to understand.  

Most of you guys if you had to paint a picture or make love to a women, the first thing you'd do is consult a manual and run some stats.  "Hmm, now what goes where? ...ah there we go  How does that seem?  Good?  Yes we have a 57% satisfaction ratio from the female.  I have mastered it.  Good job, and goodnight.".

....  zzzzzzz.


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## professor_frink (29 December 2010)

Gringotts Bank said:


> There's an art to trading which none of you seem to understand.
> 
> Most of you guys if you had to paint a picture or make love to a women, the first thing you'd do is consult a manual and run some stats.  "Hmm, now what goes where? ...ah there we go  How does that seem?  Good?  Yes we have a 57% satisfaction ratio from the female.  I have mastered it.  Good job, and goodnight.".
> 
> ....  zzzzzzz.




LOL!

And I thought your last post was a classic! This one is an all timer


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## SmellyTerror (30 December 2010)

Be profitable.

Everything else is sponge and padding.

(Though the most important part of the sponge and padding is money management, because the most profitable system in the world isn't much good if you lose all your money every time there's a bad patch).


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## TulipFX (30 December 2010)

A good way to practice money management is to use the 'coin flip' method of trading.

Not in a trade? Flip a coin. Heads you go long, tails you go short.

From there, set a Stop Loss level. Calculate your lot size.

If you can go two weeks and not lose money, you have mastered money management and trade management.


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## IB12 (30 December 2010)

Never underestimate the market.
Always be humble and ready to take losses. 
Admitting defeat and having some humility will help you avoid revenge trading and risk of ruin.


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## pixel (31 December 2010)

IB12 said:


> Never underestimate the market.



right - and that reminds me of another one:
"The Market can stay irrational for much, much longer than you can stay solvent."


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## tech/a (31 December 2010)

> Learn about intuition and gut feel. Learn how to use yours.
> 
> Learn about core beliefs.
> 
> ...







> Most of you guys if you had to paint a picture or make love to a women, the first thing you'd do is consult a manual and run some stats. "Hmm, now what goes where? ...ah there we go How does that seem? Good? Yes we have a 57% satisfaction ratio from the female. I have mastered it. Good job, and goodnight.".




Where as you'd get a smile across a room,pop out the chest with a flood of testosterone saunter over and offer to buy the girl a drink.
Upon acceptance and with animated conversation you "know' its all working and hone in for the final offer only to wear the drink---that's all she was interested in---but you had ALL the signs and gut feel said --bet the farm---
Yep you've mastered it---


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## forexdiscussion (25 January 2011)

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?




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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## tothemax6 (25 January 2011)

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



+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'.


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## skyQuake (27 January 2011)

Learn from your mistakes.

And even better, learn from the mistakes of others.


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## WaveSurfer (27 January 2011)

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

Thanks Wyckoff


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## skc (27 January 2011)

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


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## SmellyTerror (3 February 2011)

forexdiscussion said:


> The most important trading rules are,
> 
> 1. Don't lose your money
> 
> ...




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


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## Myse (18 February 2011)

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.


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## ginar (20 February 2011)

•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


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