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Five unbreakable trading rules

Discussion in 'Beginners Forum' started by gkintl, Dec 15, 2013.

  1. gkintl

    gkintl

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    Every trader dreams of making millions from forex trading. However, it is only a handful of them who are able to face the challenges thrown at them by market and succeed in their goal. There are five unbreakable rules which a successful trader always follows. They are:
    a. Trade the trend
    b. Never trade on assumptions
    c. Discard rumors
    d. Never avoid using stop loss facility
    e.Cut down losses and ride on profits

    Of the above, point b and e are the most difficult to follow rules. Most traders assume that price will reverse at some point of time and enter a trade. That puts the trader at risk. A professional trader will enter a trade only after firm confirmation of the trend. Also, a professional will never close down a winning position early. A trailing stop loss will always be used to protect profits and stay in the trade.
     
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  3. willy

    willy

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    i think rule number one in the forex is trading with the trend and the rule is make the trend is your friend and try always to see the trend and trade with it not against it
     
  4. Decub

    Decub

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    They are quite some good rules though I know traders who do not keep some, especially rule no d. To them, the stop loss tool is just an option which they think they can handle on their own but quite important to a new trader. That which he strives to do is to always learn how to place his stop loss well.
     
  5. Pettyeve

    Pettyeve

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    This is a good advice for traders to follow in their trading. I like their rule, trade the trend. People used to say that the trend is a trader's friend. It is good when the trader learns how to follow the trend and trade on it than trading against it.
     
  6. Faal

    Faal

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    Trend is our friend; that’s way I am not interested in reversal trade position! Yes, sometimes I miss few opportunities but overall, I am a profitable trader because of following the direction of FX market! On the other hand, I never open any trade position without using SL position.
     
  7. sininfinity

    sininfinity

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    Other points you made are said by many traders and valid. But I can't come to an agreement with this following:

    There is a saying that "Buy the rumors and sell the facts". Market makes a lot of movement due to rumors.
     
  8. Glenn Phillips

    Glenn Phillips

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    so many traders like to hedge when fall a great trouble. Frankly, in my live trading account I have used all of trading styles unless hedging! Basically I am a retail Forex trader so, I can’t block my trading balance for a long time! Besides, scalping trading style is my favorite one; it produces quick money and here I can use short SL position!
     
  9. Lee Mark

    Lee Mark

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    Well, I don’t open any new trade position without making market analysis! It’s a skilled based profession, means good skilled Forex traders are able to make good profit in their trading! Besides, I follow the market trend.
     
  10. robert.miner

    robert.miner

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    I am very lucky to read your writing. hopefully with the 5 points you mentioned can increase my knowledge about forex.
     
  11. Tom Latham

    Tom Latham

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    Of course, it’ll! Especially the 1st point I mean, following the market trend! Since, trend is our friend!
     
  12. Svetlana Loboda

    Svetlana Loboda

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    Your 1st point is the key! I mean, following the market trend; even it’s the best strategy! There is no way to trade against the market momentum!