Lesson 9: Trading Rules for Digital/Binaries

'Fixed Odds Trading Master' gave me some traders rules.

Here is a summary of them.

Traders Rules.

1. Establish a plan and define specific risk and profit objectives before trading.
2. Remember there is no sure thing. The only real protection is a stop-loss which should be in place on every trade on every day the trade is 'live.'
3. Correct use of 'tailing stop-losses will allow you to let your profits run and correctly stop loss you out of a trade when the objective is not attained.
4. A trading system does not have to be difficult but it - or you - must take care of your entry and exit points on every trade.
5. Be 'volume' aware. Declining volume usually indicates the market is not accepting higher or lower prices and may be an early indication of a market turn.
6. Never trade markets that you do not understand.
7. Learn a money management system that suits your personality and stick with it. This usually means accepting and taking a loss as part of normal trading.
8. Always trade the most active markets.
9. You can't pick tops or bottoms but be aware at all times that sometimes the broader markets may define these tops and bottoms for you.
10. Never ever, ever, ever trade against the trend.

'Fixed Odds Trading Master' outlined a few of the things that separate winners from losers. By reading this I hope you are becoming a winner.

1. Winners learn from their mistakes. Losers don't. They actually make them again and again.
2. Winners don't blame anyone else for winning. Losers blame everyone else for losing.
3. Winners take calculated risks. Losers just take risks.
4. Winners learn to control their emotions. Losers have little or no control.
5. Winners are always learning and improving. Losers 'Don't have the time.'
6. Winners follow a set of rules - a plan. Losers don't have any rules to follow.
7. Winners use their strengths and minimise their weaknesses. Losers don't address weaknesses.
8. Winners develop a plan to succeed. Losers don't even have a plan to develop.
9. Winners diversify their risk. Losers put all their eggs in one basket.
10. Winners use risk and money management wisely. Losers are gamblers.

Lastly an anonymous poem from some wise poet 150 years ago.

The Thinkers Philosophy.

If you think you are beaten you are,
If you think you dare not you don't.
If you'd like to win but you think you can't
It's almost certain you won't.

If you think you'll lose you're lost,
For out in the world we find
Success begins with a fellows will,
It's all in a state of mind.

If you think you're outclassed you are,
You've got to think high to rise,
You've got to be sure of yourself before
You can ever win a prize.

Life's battles don't always go
To the stronger or faster man,
But soon or late the man who wins
In the man WHO THINKS HE CAN.

I'll send lesson ten tomorrow.

Great Trading.

Dean Roberts.