Rules for profitable day/swing trading

Reggie

Well-Known Member
#1
1. Trade in the direction of the trend. Buy at or near rising 20 period MA, sell at or near downward sloping 20 period MA.This will eliminate 70-80% of your losing trades.

2. Always cut your losses and let your profits run. Take small losses and large wins.

3. Trail stop loss. Don't let a profitable trade turn to a looser.

4. Trade as per plan. Don't trade unless you know where you should get in and where you should get out.

5. Always use protective stop to limit your losses.

6. Learn to be patient. Don't trade impulsively. Wait for the right opportunities and setup.

7. If the reason you entered the trade is no longer valid, get out.

8. Do your own homework. Keep ready long/short levels to enter trade. Make use of system to inform you when the target entry/exit price is there for the taking.

9. Be open to research.

10. Give time to your sytem to work. If your method of trading is working, don't keep changing it.

11. Remember the market is never too high or low to buy or sell.

12. Be disciplined. A trader has periods of profit or losses. Don't let the losses get to you psychologically.

13. No indicator that is a 100% right all the time. Use common sense along with your method of trading. If your indicators are telling you one thing but the market is obviously doing something else, listen to the market.

14. Remember the golden rule - The market is always right.

15. Never risk all in a trade/trades. Max. loss on open positions should never be more than 5% of capital. Close all loosing positions immediately if this loss level is reached.

16. Don't overstrech your capital. Trade markets you are sufficiently capitalized for.

17. Never trade with money you cannot afford to lose.

18. If you hit your target profit, take it, or atleast protect with trailing stop loss.

19. Don't revenge trade and try to make up for all your losses in one trade.

20. Don't blindly follow someone else's recommendations or tips.

21. If there are few consecutive days of losses or there are a row of loosing tades, take a break for a few days or weeks. Trade only when you are in the right psychological frame of mind.

22. Don't trade to many markets. It's better to be an expert in one market than a novice in many.

23. If there is a marging call, it means something went wrong with your trade, and exit the trade.

24. Don't take losses personally.

25. Most important, have a life besides trading. If you are not happy with life in general, you will not be in the right frame of mind to be trading.
 

Reggie

Well-Known Member
#3
TP, this rule will work in any timeframe, intraday 1/3/5/15/30/60 minute chart. However suggest to get a bigger and a more profitable picture check the daily timeframe.

The sloping MA is the key. A caveat : when the price moves extremely far away from 20 perioda MA, a reverse position can also be taken.

Attached is the chart of SBI on a daily timeframe. The sloping MA tells it own story.


Reggie, which time frame would you use for following these rules ?
 

Attachments

#5
TP, this rule will work in any timeframe, intraday 1/3/5/15/30/60 minute chart. However suggest to get a bigger and a more profitable picture check the daily timeframe.

The sloping MA is the key. A caveat : when the price moves extremely far away from 20 perioda MA, a reverse position can also be taken.

Attached is the chart of SBI on a daily timeframe. The sloping MA tells it own story.
Thanks Reggie.

PS : For attaching images, please upload them on an external site and provide the link here. For instructions, please check my signature below.
.
 

boarders

Well-Known Member
#6
seeing the posts after mine, i would like to state from my experiance that the exits are the most important than entry, its important to figure out the exits rather than the entry, we should enter only if the RR is right than entering all the trades our system gives us. We must figure out an exit strategy before we enter.
 

Reggie

Well-Known Member
#7
WOW Boarder!! Great to know. You have now actually found the holy grail. i.e set of rules that makes trading profitable for you every day.

Have similar experience as yours. Since the time I have been following the rules, trading has taken a very positve turn.

The rules that I have posted are actually not fully mine, but gleaned from extensive reading and from real life experience. Its good to know that you figured it out by yourself.

The only reason for posting on the forum is to help other traders to learn the rules that have helped me turn to profit.

I hope it will help other traders as much as it has helped me.

reggie, 6 years into trading, looking for the holy grail, and i have been following that set of rules you posted, and i have been making profit every single day for last one year following those rules, i had figured it out by myself. thank you for putting it into words.
 

Anillal

Active Member
#8
reggie, 6 years into trading, looking for the holy grail, and i have been following that set of rules you posted, and i have been making profit every single day for last one year following those rules, i had figured it out by myself. thank you for putting it into words.
touchwood.
 

Anillal

Active Member
#9
Thanks Reggie for the post. After seeing all those posts on useless advice or blackbox sort of market analysis or on AFL etc or 1lakh to 1000lakh nonsense it is nice to see someone talking downtoearth trading common sense. Allow me to humbly add that like boarder every successful trader figures out similar rules for himself sooner or later.

Once again thank you very much for taking time to write a great post.
 

Reggie

Well-Known Member
#10
Thanks Anil for the kind words. I beleive in giving back a part of what I have learnt and received.

You are right, there will be many threads that promise the moon and to make one fabulously rich overnight. Unfortunately a many of the members will waste their time trying to following the shortcut promise to the holy land, only to realise after a great deal of time has been wasted that the promise is only a mirage.

It is important to realise that only hardwork, passion to trade, and desire to improve that will help one to be a disciplined and a profitable trader.

Good luck to all and God Bless, always.

Thanks Reggie for the post. After seeing all those posts on useless advice or blackbox sort of market analysis or on AFL etc or 1lakh to 1000lakh nonsense it is nice to see someone talking downtoearth trading common sense. Allow me to humbly add that like boarder every successful trader figures out similar rules for himself sooner or later.

Once again thank you very much for taking time to write a great post.
 

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