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                                                                                                                                                                                                                                                                                                          Ten Golden Trading Rules That Can Help New Traders

  1. Never add too a losing trade. In adding to a losing trade you are already wrong but now become more wrong with a bigger trading size. Adding to losers makes you a counter trend trader that usually ends badly.

  2. Never lose more than 1% to 2% of your trading capital on any one trade. This means use position sizing and stop losses so when you are wrong the loss is not a big deal.

  3. Never trade anything you do not understand 100%. Stay away from trading futures, forex, or options until you understand the risk and how exactly they work.

  4. Always trade with the trend in your own time frame.

  5. Only look for low risk, high reward, high probability setups , when there is nothing to trade, trade nothing.

  6. Trade the chart and price action, not your own opinions or predictions.

  7. You have to trade your own way, the trading style that you are comfortable with that fits you.

  8. If you do not have a full trading plan with rules on entries, exits and risk management stop trading until you create one.

  9. The size of your wins and losses ultimately determine your trading success regardless of your winning percentage. 

  10. Your risk management rules will ultimately determine the success of your technical trading system.