Rules to be a successful trader?

<p id="isPasted">If a person is interested in becoming a successful stock trader, then they need only spend a few minutes on the Internet to find phrases like "plan your trade; trade your plan" and "keep your losses to a minimum." However, these tidbits can seem more like a distraction than useful advice. When you're new to trading, you probably just want to know how to make money quickly.</p><p>Today's technology makes it easy to test a trading idea before risking real money. Backtesting is a method of testing the viability of your trading idea using historical data. After a plan has been developed and backtested, it can be used in real trading.</p><p>Trading should be approached as a full- or part-time business, not as a hobby or a job.</p><p>In the case of a hobby, there is no real commitment to learning. The lack of a regular paycheck can be frustrating if it's a job.&nbsp;</p><p>There are expenses, losses, taxes, uncertainty, stress, and risk associated with trading. The role of a trader is similar to that of a small business owner, meaning that you must research and strategize to maximize your business's potential.</p>

<ul style="list-style-type: disc;margin-left:26px;" id="isPasted"><li>A trading plan is always a good idea.</li><li>Trading should be treated as a business.</li><li>Rule 3: Make use of technology.</li><li>Traders should protect their capital.</li><li>Rule 5: Study the markets.</li><li>You should only risk what you can afford to lose.</li><li>Develop a method based on facts.</li><li>A stop loss should always be used.</li></ul>

<p id="isPasted">Trading plans are necessary if you want to succeed. You should have a trading plan that includes the position, why you entered it, a stop loss point, a profit-taking level, and a sound money management strategy. Trading with a good plan will remove all emotions.</p><p>If a trade goes against you, sell it and let it go. Don't hold on to a losing trade in the hope that it will increase in price. It is most likely that you will lose more money in the end. Identify a stop loss price before you enter a trade, a price at which you must sell if the trade goes south. Depending on your risk profile, you should determine how much to set as a stop loss.&nbsp;</p><p>You should decide how much profit you are willing to accept before entering a trade. Profits should be taken when a trade turns out well. Profits should be taken when a trade turns out well. Be patient and watch the profits roll in.</p><p>Don't trade based on tips from friends or brokers. Make sure you do your own research and analysis before trading. Invest wisely.</p>

<p id="isPasted">Here are some general rules for success in trading:</p><ol><li>Develop a trading plan: Have a clear strategy, set achievable goals, and stick to your plan.</li><li>Control your emotions: Avoid impulsive decisions and keep a cool head, especially in volatile markets.</li><li>Diversify your portfolio: Spread your investments across different asset classes and markets to minimize risk.</li><li>Keep up to date with market news: Stay informed about market trends, economic events, and company news that may affect your investments.&nbsp;</li><li>Manage risk: Utilize stop-loss orders and position sizing to control risk and protect your capital.</li><li>Be patient: Don't try to make quick profits, instead focus on long-term success and consistently make profitable trades.</li><li>Continuously educate yourself: The markets are constantly evolving, so stay up to date with new trading techniques and strategies.</li></ol>

<p id="isPasted">The length of time it takes to become a successful Forex trader varies from person to person. Back in the early days, it was difficult learning the craft because there were not very many people willing to share their knowledge. You pretty much had to learn by trial and error.</p><p>Nowadays there is no shortage of Forex training programs that can get you up and running in a relatively short time. The bottom line with learning to trade is how serious are you about learning and whether can you treat it as a profession and not as a hobby. Not taking it seriously is where most people make their mistakes and lose their money.</p><p>Once you have a proven strategy that gives you an edge, I believe you can become a profitable trader after executing 300 - 500 perfect trades. I use the term perfect trades and not profitable trades because you can do exactly what you are supposed to as a trader and the trade still loses. Trading is based on probabilities. It is not an exact science. There is always a certain percentage of chance the trade will lose. Your goal is to put the odds in your favor and use the law or large numbers. If you have a strategy with a 55% winning percentage and you manage your risk properly, you will come out ahead. A perfect trade is a trade that you executed exactly as your rules called for. The outcome of the trade is not important at this point.</p><p>There are plenty of free ones out there, open a demo account, and begin practicing. Once you nail down the basics, open a live account and start trading really small lot sizes. Trade the smallest lot sizes until you have made at least 100 perfect trades. You can then start raising your lot size to start making a little more money.</p><p>Remember there is no rush. You are developing a skill that once perfected, offers the ultimate in freedom.</p>