Trading Discipline
Trading tips for Beginners:
- Follow the trend, don't be afraid to be a sheep.
- Know why you are in the market to relieve boredom / to make profit.
- Use any good system and stick with it.
- Apply money management techniques.
- Do not over-trade
- Take a position only when you know your profit goal and risk limit.
- Don't try to pick tops and bottoms, take your bite out of the middle.
- Don't trade too many markets with too little capital
- Don't trade illiquid markets
- Resist from temptation and calculate Risk Reward ratio before you trade
- Establish a trading plan. Decide entry & exit points. Profits are for those who act and not react.
- Follow your plan with stop losses
- Use technical signals to maintain discipline
- Eliminate impulse trading
- When you have made a successful trade avoid giving back some to the market
- Trade with plan not greed hope or fear
- Cut your losses short
- Let your profit run. Accumulate them
- Accept many small losses and stay still for few large gains
- Standing aside is a position, Patience is crucial
- Don't trade with emotions
- Approach the market with a reasonable time goal
- Never add to a loosing position
- Analyse your losses, learn from your losses
- Always use stop loss orders.
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