Rules of Successful trader

hi
you can see that already i complete more than 1.5 years in the market and i got the main idea of how to trade and that why i didnt start trading till now

trading like any other sport of business
you must understand first what is all about

like casino it is all about having fun - a stupid guy enter the casino to became rich
second understand the rules like diving - everyone can dive 10 M but can you get get back before the drown
third plan for it- if you planing to open a jet-sky rental in the middle of the mall for sure you will lose because you need sea next to you.
train your self and go for it and you will get to the point

this is my point of view

How about the psychological factor? Discipline is so important, rules and plan don't mean anything unless you are discipline

for sure bro
but who get emotional in trading he still not ready for it
it is like you have a supermarket and everytime someone will come and ask you a free food be cause he cant afford it

you will end up broken

stick to your rule only

I agree with you, emotional factor is the primary factor in restraining traders getting to their targets. A good trader needs to control his emotions. Successful trader have very different approach to market as compared to newbie traders.

I'd like to do my post like separate, new thread, but unfortunately has no rights...
So, I want to remind you about one of the greatest traders of all time - William Gann. As well as his rules:

1. The struggle for success - if you want to be successful, the most important rule is to strive for your success.
2. responsibility for results - you need to achieve success by yourself - it all depends on you.
3. Plan for Trade - When you enter market, you have to imagine a clear game plan as a relatively entry into market, and in relation to output.
4. Placing Orders - Gann strongly recommended to use pending orders to enter the market.
5. Coefficient of profit - you need to establish coefficient for the profit in relation to risk.
6. Private trade - never, under any circumstances, do not show your trading positions to anyone else.
7. Credit levers - you should never put at risk more than 10% of your trading capital.
8. Double tops - double tops represent one of the best ways to enter into the short side.
9. Double grounds - most of the major bull markets start from these bases.
10. Internal days - watch for the formation of internal market days.
11. Reversal signals - understand and look for reversal signals.
12. Fibonacci numbers - Gann never talked about Fibonacci numbers, but in reality used them. It was one of his secrets that he kept himself.
13. Suitable broker - You should choose such broker that will fully satisfy your needs for trade.
14. Diversification - You have to diversify your trading positions so that they were in different groups of assets.
15. Interest stop orders - stop-losses used by you should be based on a percentage of current price.
16. Market position - There are three different market positions, which you can borrow at any time - long positions, short positions, and being out of the market
17. Nonstandard orders - When you place a limit pendin orders, they should not be on the round values.
18. Fundamental factors - you should not ignore the fundamental factors. They are the drivers of the market.
19. Price gaps - Gaps are extremely important for the analysis!
20. The pyramidal building up of positions - pyramidal build up of positions can be extremely profitable.
21. Trade in a direction of the main trend - Gann always said that it is necessary to go to the main trend. This is very important.
22. Harmonic cycles - these are time cycles, which are very important. Main cycles, for example in the commodity markets, last for ten years.
23. The square of price and time - If market forms the basis for a certain price, then it will make a rally on the hourly, daily, weekly and monthly charts to square this price.
24. Timing - the moment of formation maxima and minima based on time and may be not only maximum or minimum for the market.
25. Watching the time of fluctuations - Observe both time intervals, and rates from lows to highs, from high to low, from base to base and from peak to peak.
26. Psychology & Health - Trade only then you're feeling strong psychologically and physically.

Oh, there are lots of good information both in main fiend and in answers. I still believe that the main rule, as it is already mentioned here, "a stupid guy enter the casino to became rich". it is the main mistake of newbies. This stuff does not even fit to binary for them. By accepting the truth that you have to work hard on yourself and get ready to loooong time education, and you will see your thousands and millions only after some time.

rule no 1. preservation of capital
rule no 2. preservation of capital
rule no 3. always remember rule 1&2

Very interesting note posted by cakrajaya
How ogten do you see something like "Never invest more money you can afford to lose"? So here it's the conclusion that the most crucial rule is indicated by a broker?.. =)

The easiest way to make money as a beginner trader, who will in all likelihood have a job is to trade longer term with only a few minutes a day required to check trades at specific times. Longer term trading allow you to screen out changes in market conditions over time and also reduces cost of commisions to tiny fraction of profit.
New traders should be content with 1-2% profit per month on average. This requires immense dicipline from newer traders who WANT to trade and be involved. I suggest newer traders should set up 2 accounts and use one account as gambling account to satisfy these urges to trade and test new ideas out.

A good trading system should ideally only have 1 clearly identifiable reason for entry. this will allow the trader to easily backtest and measure performance without formfitting data. All you are concerned about is how measurably how accurate you can measure performance.

To prove the success of longer term trading I will post trades and monitor performance over time to prove to newer traders that trading should be BORING and TIME equals money

To be a successful trader, it does not take much of pains. All what you need to do is acquire full knowledge about the economic surroundings. You should think logically about how the news would affect a particular security. A successful trader should know how to control the emotions because the emotion driven decision sometimes creates havoc.
To be a successful and efficient trader, you need to start trading by opening demo account as it will help you in testing your strategies. Once you get enough confidence then start with real money.

very important indeed

Totally agree with you. And don't use too high leverage.

Rules of a Successful Trader:

To always follow the rules that you set.

Never break the rules and try to justify the reason.

Sometimes easier said than done.

I have been trading currency on and off for nearly 4 years now but still not near to profitable, just yet. Lucky I have my main stream of income, but i know one day I will have that "AHA!" moment just like few senior members here in ff - and once that day comes, I will just fade away from the lime lights

The secret to trading is paying attention to yesterdays price. simple $$

sorry neeshamjames, i have to disagree with your first couple of sentences. i do not think it is in the best interest of traders, especially new traders, to worry about the news so much and trying to acquire full knowledge about the economic surroundings. the best thing to do is to learn to read price action, imho, because price action tells you what it's likely to do...you don't have to worry about learning all that other stuff. when i used to pay more attention to fundamentals, and there was a time i was deep in to it, i would have myself convinced this currency or other is going to drop due to current events and economic conditions of its country etc., meanwhile i would ignore the signs that were right in front of my face. when i finally learned to completely ignore all of that, and i mean, i never look at economic news or reports anymore, my trading became ten times better. now i follow only one thing, price. that's my two cents. i agree with the rest of your statement about needing to control emotions and practicing in demo until proficient.

Stick to our trading plan/system is necessary. But without discipline, it's useless. That's why we need to train our discipline to stick to the plan. In fact, less of traders who made it happen...

Having the stimulus, desire and dedication to keep learning, hone your skills. The 10,000 hours as pointed out by Malcolm Gladwell in Outliers!

The one single thing that every successful trader posses is:

They Love The Market

They don't love the spoils, or the potential riches that the market can deliver, these are bi products of their success. They love the sport of trading and have a strong desire to compete and conquer. The money is nice, but it's not the primary reason they trade.

I'm a big believer if you do anything solely for money, you'll suck at it.

So far from what I have seen and read, to be a successful trader you need to take into consideration all the types of analysis, the technical, the fundamental and the sentiment analysis. I think this gives you an overall grasp of the market to make better decisions. Also money management is crucial as a trader in my opinion needs to set a max percentage of invested equity to preserve capital and minimise risk.