20 rules followed by professional traders

Obtaining reliable profits in the financial markets is more difficult than at first glance. In fact, unofficial estimates indicate that more than 80% of potential traders will eventually fail, be eliminated and switch to safer hobbies. But the brokerage industry rarely announces customer failure rates because they may worry that the truth will scare away new customers. In fact, the flushing rate may be much higher than 80%.

In fact, successful trading is difficult, and traders who continue to make profits have certain rare characteristics. These 20 rules are skills that long-term professional players use to stay in the circle of winners.

The road to long-term profitability

Long-term profitability requires two related skill sets. The first is to identify a set of strategies that make more money than lose money, and then use these strategies as part of a trading plan. Second, when the market experiences both bull and bear impulses, the strategy must perform well. In other words, although many traders know how to make money in a particular market, such as a strong upward trend, they will fail in the long run because their strategies cannot adapt to the inevitable changes in market conditions.

Key points

  • Profitable trading is difficult, and successful traders have certain rare characteristics.
  • It is estimated that more than 80% of traders fail and exit.
  • One of the keys to success is to determine a strategy for winning more than losing money.
  • Many traders fail because their strategies cannot adapt to changing market conditions.
  • The classic rules of professional traders help to maintain a high degree of focus on profitability.

Can you break away from the group and join the professional minority in a way that increases your chances of long-term prosperity? Can you stand out from a group of people who want to be traders and achieve trading success? Start with a clear and concise plan and proven strategy, then use the 20 rules you follow.

1. Observe discipline

Discipline cannot be taught in seminars, nor can it be found in expensive trading software. Traders spend thousands of dollars trying to make up for their lack of self-control, but few realize that looking in the mirror for a long time can accomplish the same task at a much lower price. The important lesson is that once traders have confidence in their trading plans, they must have the discipline to stick to it, even if continuous losses are inevitable.

2. Losing the crowd

Long-term profitability needs to be positioned before or after the crowd, but never among the crowd, because this is the goal of a predatory strategy. Stay away from stock boards and chat rooms, where people are not serious, and many of them have ulterior motives.

3. Participate in your trading plan

Update your trading plan weekly or monthly to include new ideas and eliminate bad ideas. Whenever you fall into a pit and are looking for a way out, please go back and read the plan.

4. Don’t cut corners

Your competitors will spend hundreds of hours perfecting their strategy, and if you want to throw a few darts and make a profit, you will be rudely awakened. The only way to achieve long-term success is hard work and self-discipline.

5. Avoid the obvious

Profit rarely comes from following the majority of people or crowds. When you see the perfect trading setup, others will most likely see it too, putting you in the crowd and preparing for failure.

6. Don’t break your rules

You create trading rules to get out of trouble when your position is bad. If you don’t let them do their job, you lose discipline and open the door to greater losses.

7. Avoid market masters

This is your money, not theirs.Remember, the master may talk about his position, Hope the excitement chatter will increase their profits, not yours.

8. Use your intuition

Trading uses the mathematical and artistic aspects of your brain, so you need to cultivate both to be successful in the long term. Once you are satisfied with the math, you may want to try to improve your results through meditation, some yoga poses, or a quiet walk in the park.

9. Don’t fall in love

If you like your trading tools or investments too much, you will give way to flawed decisions. Your job is to use inefficiency to make money, and everyone else is leaning in the wrong way.

10. Organize your personal life

Any mistakes in your life will ultimately affect your trading performance. This is especially dangerous if you have not made peace with money, wealth, and the magnetic poles of abundance and scarcity. Separate your trading needs from your personal needs and take into account both.

11. Don’t try to calm down

Loss is a natural part of the trader’s life cycle. Accept them gracefully and stick to time-tested strategies, and you know that in the end you will get your performance back on track. Don’t try to make up for losing trades by increasing trades. Retaliation trading is the secret of disaster.

12. Heed the warning

In the absence of multiple technical warnings, major losses rarely occur. Traders usually ignore these signals and allow hope to replace deliberate discipline and prepare for pain. In short, watch for early signs that market conditions are changing and bring risks to your position.

13. Tools can’t think

Some traders try to make up for their lack of skills with expensive software, which is pre-packaged with various proprietary buying and selling signals. When you think software is smarter than you, these tools can interfere with valuable experiences. Use the tools that suit your trading plan, but remember that in the end, you are the one who decides.

14. Use your mind

It is natural for traders to imitate their financial heroes, but it is also the perfect way to lose money. Learn from others what you can learn, then shrink back and establish your own market identity based on your unique skills and risk tolerance.

15. Forget the Holy Grail

Losing traders fantasize about secret formulas that magically improve their results. There are no secrets in reality, because the road to success is always through careful selection, effective risk management and skilled profitability.

16. Give up the salary mentality

We are taught to hone salaries through the work week. This mentality of rewarding hard work is inconsistent with the natural flow of trading profits and losses during the year. In fact, statistics show that most annual profits are only recorded in a few trading days.


The actual number of trading days in a typical calendar year, as most markets are closed on holidays and weekends.

17. Don’t count your chickens

It’s okay to feel good about trading in your way, but the money is not yours until you close or close the position. Through trailing stop loss or partial profit, lock in what you can lock as early as possible, so that the hidden hands of the market cannot steal your profits at the last minute.

18. Embrace simplicity

Focus on price action and understand that everything else is secondary. Continue to build complex technical indicators while remembering that their main function is to confirm or refute what your eyes have already seen.

19. Get along with the loss

Trading is one of the few natural ways of losing money every day. If you are open to news, every trade loss is accompanied by important market lessons. In addition, know when to exit and suspend trading. Accept the loss, take the time to regroup, and then return to the market with a new perspective.

20. Beware of Reinforcement

Active trading releases adrenaline and endorphins. Even if you are losing money, these chemicals can produce euphoria. In turn, this encourages addicted people to take a bad stance, just in a hurry. If your transaction is for pleasure and excitement, then your transaction may be for the wrong reason.

Bottom line

Most traders fail to fully tap their potential, eventually cash out their chips and find a more traditional way of making money. Become a proud member of the professional minority by following the classic rules designed to maintain a keen focus on profitability.


READ ALSO:   Active transaction
Share your love