There is no single generic recipe that will make a person become a profesional trader and make thousands of dollars overnight. However, there are several rules that can be a reference so that a trader is always in the right corridor to get to a successful investor/trader. Here are some rules that might be adopted so that you become a successful trader.
RULE 1: Making a disciplined transaction increases your profits.
Always act disciplined. This increases your profit while limiting your losses and you can make a net profit in total.
RULE 2: Act disciplined without exception in every process.
Imagine a smoking man who wants to quit smoking. This person has moved away from cigarette smoking for years. However, occasionally, one cannot take a single cigarette from time to time. It is not possible to say that this person quit smoking; at least one cigarette a day is still smoking and its health is threatened. The person who trades in the Forex market and has a good strategy, in addition to nine of every ten movements, adheres to the trading strategy and the discipline it determines; however, it may cause serious losses if one performs only one non-undisciplined operation in one of the ten procedures that is not in accordance with his strategy.
RULE 3: After the process of loss, bring your transaction amount to a lower level than normal.
Harmful processes have always led to more harm. If you’ve done a malicious procedure, reduce the amount of your process to half of the amount you normally trade, or even up to one-fifth if possible, until you return to your normal earnings range.
RULE 4: Do not turn your lucrative transactions into aggressive behavior.
You have found a profitable direction and you have earned a certain amount of money in this direction. In this case, you will be out of the market by calculating and closing the position at the appropriate time for your strategy with the profit to finalize this process. Don’t push the lot in order to increase the number of points or position the most profitable peak and make maximum profit.
RULE 5: Do not allow your biggest lost to avoid your most profitable operation in a given period.
Let’s say you’ve done 15 transactions in the last week, and 5 of these transactions have resulted in damage, which means that you have the potential to do a great deal of damage if your damage is the most profitable. As a rule, do not allow this and do no more damage than the profit you have at your most profitable position in a transaction.
RULE 6: Identify your methodology and follow it 100%.
Determine your transaction methodology. Follow 100% of this methodology during the day when applying what kind of action you are going to do at what times and what kind of rules you are doing.
RULE 7: Limit your daily loss.
Imagine that your fund has $ 5000 USD in your account, what is the amount of log loss in the logic boundaries, do you think it is 500 USD? In all cases, ensure that the total risk of StopLoss does not exceed 500 USD. When you reach this level, turn off your computer and rest for a while and start processing again the next day.
RULE 8: Get your current level to increase your transaction amount.
Imagine you’re dealing with 1 lot. At this level, do not go to 2 lot levels for a long time and before you start to make profit regularly.
RULE 9: Learn to terminate your lost and accept the damage.
Let’s say you open a position today and you’re hurting. In order to terminate your loss (do not misunderstand immediately in the opposite direction, please do not misunderstand) you do not need to catch the StopLoss level. Before this level is reached, you should be able to close the process by saying “OK, I am not on my successful day today”.
RULE 10: Be yourself, don’t be anyone else!
I do not go out of the range of 10-20 lots per day in my transactions; I often know that people who are more ignorant than me and those who start to do new transactions earn 100 bucks and make a lot of money. But, at the moment, I know that the lot count that will allow me to move comfortably is between 10-20 lots according to my transaction strategy and psychological construction and I am not going out of it. Find your own circumstances and best situation fits to you and take action on the appropriate conditions for you.