Cardinal Rules of FX Trading

1) Develop Price Bias
2) Trade directionally with Price Bias
3) Never enter countertrend trades, susceptible to gaps against position.
4) Get out at predefined loss, never let anything go 100 pips against you.
5) Enter directionally on a countertrend point to obtain the best risk/reward ratio.
6) Maintain winning position till it hits significant technical resistance/support level, based on wave analysis.
7) Never abandon a position( Don't step away from trade platform with open position)
8) Never carry position overnight when sleeping unless position trading.
9) Never go into a number with a open position

Some rules..of the trade.

10. there are no cardinal rules

LOL... The best one ever!

Kind of reminds me of the old saying;

"One man's trash is another man's treasure".

Like Merlin said, "There are no rules".

Nearly everything in the "Rules" can be found
in someone elses "Rules To Do".

: )

Hi accrete!

Long time no chat! Hope everything's fine man in your part of the world...
It's always nice to be a weekend again..
Hmmmmm... The quoted statement above, my brain can't process right now but here's something that came across my mind when I read your post:
"The rules that exist are only rules that we make."

Sounds cool? Yeah... I cannot attest for its accuracy though.. LOL..

Regards,
East

Rule 12. Dont miss out any rules

i remember starting a thread with isotonic and narafa a few months ago, we were going to attempt to uncover the "truths" of trading, those rules that have so much truth that they are indisputable. however we quickly realized that there are no such truths. i almost feel weird saying it, because every game has some truth. but in trading you can read two books by very good traders, and they will have conflicting truths. but alas, maybe there is some truth, the truth is that there are no truths!

Very true.

For me I know one truth.

Preserve Capital...

The problem with universal truths is they must be absolutely vauge.

LOL.

Ps, See your words in a week, Merlin...

How about the truths that can be derived from one liners.

Like "It's better to be outside a good trade wishing you were in, than inside a bad trade wishing you were out."

Don't remember who said it but to me it says that there's always another trade coming around the corner.

Hey Scott, I musta missed the selection process for your new avatar.

Does this mean your now rooted in the Bear Camp?
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That's a Badger.. I have always been accused of being a Badger, because I never let anything go... The Avatar is from badgerbadgerbadger.com

I am off for my vacation now. So see you in a week.. Scott

My guiding cardinal rule for trading is....That the external is a reflection of my internal.