"Courage is the greatest of all virtues, because if you haven't courage, you may not have an opportunity to use any of the others." - Samuel Johnson
Tuesday 21 July 2020
Assad's Rules of Trading
Trading rule No 1: Never chase. Forget about the Dollar loss for a moment as the real damage comes from the distraction it creates.
Trading rule No 2: Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.
Trading rule No 3: Don't ride the ticks and Dollar profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.
Trading rule No 4: Price action trumps everything. Management lie or mislead but price action (money flow) never lies.
Trading rule No 5: Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.
Trading rule No 6: Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.
Trading rule No 7: Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.
Trading rule No 8: Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.
Trading rule No 9: Minimise whipsaw at all costs. It's a trader killer. The root cause of trading failure more often than not, starts with whipsaw.
Trading rule No 10: Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.
Trading rule No 11: Start will long term charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.
Trading rule No 12: DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.
Trading rule No 13: Turn trading rules into habit. There is no point in having trading rules if you don't apply them!
Trading rule No 14: And the most important; only tell your wife about your losers. :-)
Trading rule No 15: Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.
Source: http://www.asenna.com.au/
Trading rule No 2: Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.
Trading rule No 3: Don't ride the ticks and Dollar profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.
Trading rule No 4: Price action trumps everything. Management lie or mislead but price action (money flow) never lies.
Trading rule No 5: Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.
Trading rule No 6: Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.
Trading rule No 7: Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.
Trading rule No 8: Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.
Trading rule No 9: Minimise whipsaw at all costs. It's a trader killer. The root cause of trading failure more often than not, starts with whipsaw.
Trading rule No 10: Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.
Trading rule No 11: Start will long term charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.
Trading rule No 12: DO NOT trades Forex short-term. It is a mugs game, news driven by central banks. It is like betting on the greyhounds.
Trading rule No 13: Turn trading rules into habit. There is no point in having trading rules if you don't apply them!
Trading rule No 14: And the most important; only tell your wife about your losers. :-)
Trading rule No 15: Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.
Source: http://www.asenna.com.au/
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