10 important Commandments for the discipline in trading

These Commandments for discipline in trading (curreny or stock trader) should improve your trading success if adopted and followed. They were developed after years of experience from trading in the stocks, Forex, and options market and from reading hundreds of books and filtering the essence of knowledge from each, and from continuous research and study of the markets.

1) Trade free from fundamental problems .Don't judge a stock. Don't try to explain a losing position, or love a winning one. A stock may have its "Fundamental Truths," but the "Absolute Truth" is the price.

2) Focus on the proper strategies for trading, and not on making money. Money is merely a result of skill level, or lack thereof. As long as you trade with continuous discipline, don't review prior trades with a "should have" way of thinking. Both winning and losing trades should be reviewed during your journey towards mastering trading.

3) Develop a consistent trading style with your personality and philosophy. Trade on your nature!

4) Decide the reward-risk ratio of each trade before entering. Risking the farm to make peanuts is not the right decision. Create the plan only BEFORE the trade!

5) Sometimes the best action is no action. Only fools think that they must trade every day.

6) Trade along the trend since stock prices flow in the direction of least resistance. If a stock goes against your trend then get out. When in doubt, stay out.

7) There are no emotions in trading. Disciplined traders can watch the market from the perspective as if they are not in a position, even when they are. Do what the market is telling you, not what you think it is right.

8) Make the market come to you. If it doesn't play "as you wish," step aside. Be disciplined, and be patient, and never trade when physically or mentally disturbed.

9) The true battle is not against the market, but learning how to control your own emotional out bursts, psychological demons, and human nature. Many internal battles of letting fear and greed control logic and discipline which unfortunately result in painful losses will be needed in your trading maturation process.

10) There are no "holy grails," magic software to success. Professional traders never stop being students of the markets. Spend time daily developing your skills to be a better person and trader, and take responsibility for your own trades and actions.
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Mazen Melhem
E-Money Power
www.emoneypower.com

Hello,

A Good set of rules.

Regards
Sanjay

Most succinctly put...very nice....

And, for the beginners, would like to recommend Dr.Elder's "Come into my Trading Room" for an elaboration of what Mazen has given here concisely..

Cheers!