20 Rules Followed by Professional Traders

[omfg.xekcep]

Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.

So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.

Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.

The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.


All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

[1715580696]

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[palle11]

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

This is important to every trader, especially those losing money. When you lose money in trade, you should understand that you are not alone but it was a call for you to learn more and build on what you have learnt until a time you have a mastery of your strategy.

[omonuyak]

Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.

So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.

Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.

The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.


All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

seriously you have listed almost all and when we can discipline ourself to follow this rule there is no way we would not become a professional traders.  In trading we need to be different from what we have been told.  You need to learn what works for you in other to develop your strategy for success.

[secondbtc]

Market News and Emotions play a very important role in Trading and smart developer
never avoid this things

[harizen]

All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.

The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

Im not really an enthusiast of reading things we should follow as a trader because we have different preferences on that. Let ourselves learned what are the best thing we can do as our experienced will lead us to be a professional trader someday. No need to literally follows what articles or anyone says because we know ourselves but those pointers above should be taken as reference.

Anyways, you can just easily shared the link without copying the whole content. You didn't even spend a time to generalized your thoughts about the article. Basically just avoiding the plagiarism part.

[omfg.xekcep]

seriously you have listed almost all and when we can discipline ourself to follow this rule there is no way we would not become a professional traders.  In trading we need to be different from what we have been told.  You need to learn what works for you in other to develop your strategy for success.

These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.

Im not really an enthusiast of reading things we should follow as a trader because we have different preferences on that. Let ourselves learned what are the best thing we can do as our experienced will lead us to be a professional trader someday. No need to literally follows what articles or anyone says because we know ourselves but those pointers above should be taken as reference.

Anyways, you can just easily shared the link without copying the whole content. You didn't even spend a time to generalized your thoughts about the article. Basically just avoiding the plagiarism part.

Certainly! I agree with you. I myself learned to trade by making plenty of mistakes acquiring my own experience but looking behind I would rather not to make many mistakes because they cost much enough.

Sure, I have got it that I should not copy the whole original text. That is very kind of you that you hinted me about it. 

[perla]

seriously you have listed almost all and when we can discipline ourself to follow this rule there is no way we would not become a professional traders.  In trading we need to be different from what we have been told.  You need to learn what works for you in other to develop your strategy for success.

These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.

Even sometime we who already long time in trading activity not follow rules, when our emotion disrupt our way to trade, sometime we already forget about rules. Thread like this is good to make us always remember about rules.

[Gozie51]

These rules are mostly for newbies who do not have good enough experience to make much less mistakes taking the first steps towards to success.

Yes because an experienced trader have gone pass this level of reading and reading because he realizes that it is high time he went into the real trading, which is building the way he or she wants to handle the challenges of the market and not just reading people's assumed ideas and getting scared.

[asyakashi]

good and useful exposure, but very difficult to implement.
one of the hardest things is related to emotions. need to practice continuously and learn from other experienced traders.

[ChristopherAngelo]

Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.

So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.

Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.

The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.


All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

Nicely put my friend. I truly believe in getting your personal life in order when trading as the worst thing someone can do is perform emotional trading, which is far from sustainable if you plan to trade to support your living.

[yanto@1977]

Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.

So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.

Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.

The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.


All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

This is what I do when enter the market and I believe disciplines is the hard part. In many fail I ever done only this one make me far away from profit and sometimes only have big lost. Maybe trading is not my life or my mindset is wrong about this method, I think make time to learn from your post is better idea.

[omfg.xekcep]

I have just recollected Ray Dalio's interesting principles

https://www.youtube.com/watch?v=zI9I6MaS5OE&list=PLykIL_1_MFWnDnFu7GgeF5rBSPts-7wOS

and Jim Rogers's cool interview (If you want to get rich, don't diversify  )

https://www.youtube.com/watch?v=ru7rPdE-4Jg

enjoy it!

[metalglowd]

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

I think only a few things above that I still do today, being a trader is actually quite simple (at least for me).
1. Never get greedy after making a profit

"dont break your rules" it seems to me quite excessive, as a trader should be able to adapt according to market conditions

[nicolas1979]

Booking reliable profits in the financial markets is harder than it looks at first glance. In fact, it’s estimated that more than 80 percent of all participants eventually wash out and take up safer hobbies. But the brokerage industry rarely publishes client failure rates, since they're concerned the truth might scare off new accounts, so the washout rate could be much higher.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shapeshifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.

So can you break away from the pack and join the professional minority with an approach that raises your odds for long-term prosperity? Start with a clear and concise plan.

Now, internalize these 20 rules that long-time pros use to stay in the winner’s circle.

Follow Your Discipline
Discipline can’t be taught in a seminar or found in expensive trading software. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much cheaper price!

Lose the Crowd
Long-term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

Engage Your Trading Plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

Don’t Cut Corners
Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

Avoid the Obvious
Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

Don’t Break Your Rules
You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

Avoid Market Gurus
It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours.

Listen to Your Intuition
Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park.

Don’t Believe in a Company or a Product
If you're too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

Don’t Try to Get Even
Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.

Pay Attention to Early Warning Signs
Big losses rarely occur without multiple technical warnings. Traders routinely ignore those signals and allow hope to replace thoughtful discipline, setting themselves up for pain.

Don’t Confuse Execution With Opportunity
Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.

Play With Your Head, Not Over It
It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.

Forget About the Holy Grail
Losing traders fantasize about the secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management, and skilled profit taking.

Ditch the Paycheck Mentality
We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.

Don’t Count Your Chickens
Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands cant pickpocket your success at the last minute.

Embrace Simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.

Make Peace With Losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you’re open to the message.

Beware of Secondary Reinforcement
Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.

The Bottom Line
The vast majority of traders fail to tap their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules designed to keep a razor-sharp focus on profitability.


All of these rules seem to me pretty useful so I have shared them with you. By the way most of all I liked the rule about avoiding the obvious.
The original article is available at https://www.investopedia.com/articles/active-trading/022715/20-rules-followed-professional-traders.asp

Good post but I can explain it in simple method, know the risk, follow your strategy and trust no one. Depend my experience only that I should have before enter the market and never replace our money with out practice. We all know about this one but learn from mistake is the important thing we should do also. Never give up with crypto and see you soon.

[adamlillian]

Actually, I read so many theories, but it never suited me. When I started investing, all of that theory broke down. It does not help me. So I suppose we should try small investment first. If that fails, let's revise our strategy. After many failures, we will find the best strategy for ourselves and can earn a lot of money.

[Reinz12]

Get Your Personal Life in Order
Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.

I agree with this, emotions are always in our lives but when our emotions are unstable, and we are trading, it only makes our instincts unable to work because of confusion and cannot focus
A lot of suggestions that came to my attention when I started learning trading, mental, discipline and reading chart skills were the key to all that included emotions, I had experienced a 50% loss of my capital due to an unstable emotional situation, and made more than 50% profit when I have no problems in daily life

[davinchi]

Market News and Emotions play a very important role in Trading and smart developer
never avoid this things

Market news sometimes can actually be very misleading so, sometimes it is always better to focus on the charts and price action than placing so much of your attention on the news. The thing with trading is that there will always be different perspective to it since we cannot always have the same strategies anyway, but one thing is that as long as you are knowledgeable, know exactly what you are doing and confident with your skills, there are something you will not really find yourself doing.

Normally, if you have no strategy, then it is more like you are gambling and the chance of emotion rushing in and then acting some of the things listed by the Op will always be there but as long as you have what it takes, they really do not even become a thing actually.

[prtty2gal2]

I think one thing that "prof traders" forget to add there ; have a lot of money. If you are a professional trader you can make money with small amounts as well but you always have a cushion to fall back on whereas there are thousands even maybe millions of people who are trying to both survive with the income they have and also try to trade their way into comfort zone.

For example I am not a big trader and all that but I had some investments here and there and bought sold some coins for quick cash however I also try to not lose that money because I may need it soon, hence it is really risky to follow these steps when you do not have money enough even for living.

[omfg.xekcep]

Here is another one. Do not trust and follow mass media's suggestions especially in case of making investing.

Trader Anton Kreil Bashes Mainstream Media
https://www.youtube.com/watch?v=DHx2imVKUvE

[coinplus]

Actually, I read so many theories, but it never suited me. When I started investing, all of that theory broke down. It does not help me. So I suppose we should try small investment first. If that fails, let's revise our strategy. After many failures, we will find the best strategy for ourselves and can earn a lot of money.

That is usually the thing about trying to build on a strategy either as a trader or as an investor, but you certainly cannot have a strategy unless you are well vast at what you are doing. By being vast I am referring to at least having some very good knowledge of trading, great knowledge of the market as those are the things that would help you when you are making short and long term decisions depending on what suits you best.

For example I am not a big trader and all that but I had some investments here and there and bought sold some coins for quick cash however I also try to not lose that money because I may need it soon, hence it is really risky to follow these steps when you do not have money enough even for living.

Yes, all the things that the OP mentioned are attributes that are worth having, but they cannot just come unless you have decent capital first and confidence in yourself second and that is what should be built based on your skills.