In this video, Adam Hewison shares some very simple, yet powerful, trading rules that would benefit each of us in one way or another.
1. Have a Game Plan.
This is one of the most important elements in trading and you should not
be trading without one. When you have a game plan, it allows you to get
in and out of the market in a non-emotional way.
2. Follow the Game Plan.
3. Use Stop Loss.
4. Reduce Your Risk.
Did you ever have your Grandmother tell you not to put all of your eggs in one basket?
5. Filter Your Trades.
It’s important to determine a set of criteria you can use to narrow
down which markets will make good trades.
6. Trade With The Trend.
To trade successfully, you must trade with the trend. Trends tend to
persist for long periods of time and it is possible to make large
amounts of money catching those trends.
7. Do Not Listen to the News.
Many stories are planted by traders to affect the market. Within half
an hour the news will be gone and the market will be doing something
else, it’s just that simple.
8. Do Not Listen to Your Broker.
Your broker has a vested interest in putting money in his pocket and
not yours. There is a conflict of interest there, so do your homework
and make your own trades.
9. Money Management.
You really have to be good at managing your capital. This refers back
to what I said before with diversity, stop-losses, and profit
objective. All of these come under money management, which is a very
important part of trading.
10. Disciplined Trading.
To me, discipline is the key element to successful trading. I’ve made
this the last rule because this is the one I really want you to listen
to and remember. Being disciplined is following your stops, your game
plan, and taking your profits when they hit an objective.
