Tuesday, 13 June 2017

Trading Guidelines for Success

Dr. John Keppler, an author of the book "Profit with the Market Profile" has beautifully given some simple guidelines for trading success.  Here they are,

Some simple guidelines that if followed, will immensely help to increase the likelihood of success and survival in the market. The following guidelines must be understood and taken seriously by all new traders:

  • Trading is not gambling or a game of chance. It is a skill and a discipline that can be learned.
  • Consistently profitable trading cannot be accomplished without a coherent understanding of the market and how it works.
  • Learning to trade requires developing both mental and psychological skills.
  • Never practice or try to learn to trade with real money.
  • Never trade with money you cannot afford to lose.
  • Never trade without a tested strategy. Every trade entry must have at minimum a target and an exit.
  • Risk management is an essential component of any trading strategy.
  • Never trade live with a strategy that was not extensively paper traded or practiced first.
  • Never trade in a market that you do not understand.
  • Never enter a live market until you are prepared.
  • Start small and grow.

If you are not making money, review the above guidelines and identify which ones you have violated.

2 comments:

  1. Absolute right by Dr John Keppler, but problem is that everyone want to make fast bucks without understanding the mkt structure and strategy and they r seeking holy grail in their whole life.

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