The rules that each one applies to trading are personal and almost non-transferable due to that every person is a world. Yes, I’ve met people who, with other people’s techniques from the first day they get results, but it is not common.
Curiosity in the trading world is the engine that leads to creating new methods, so do not hesitate to experiment. Ask yourself why almost everything is the first step to be able to understand in what we move.
The most normal thing within the learning curve is to try all that you can and to put on with the most comfortable one. Then, once it has been adapted a technique, always evolves and the most advisable thing is to keep looking prospects of traders and researching all types of markets.
This is because nowadays robots can be built without having programming knowledge, an example of this would be the Expert Builder for Metatrader that can be found on the network. As each master has his booklet I will transcribe the rules of a famous trader called Dennis Gartman and they are:
- In a bull market, you can only be long, with a bullish spread or outside. This seems obvious but when you get involved in graphics movements of one minute or five we have messes to the determine the trend.
- Buy what is shown stronger; sell what you are showing weakness. That’s as long as you do not force the market to buy in maximum, we need a component of anticipation to be able Take advantage of that strength or weakness of a certain asset.
- Do not make a trade until you have analysed it, it will be discussed later, you need a thorough preliminary analysis before putting a finger in the mouse. We must leave the impulses for the market not for our operative.
- Accumulate minor corrections against the major trend. Little people analyse the small setbacks in strong trends, but it’s in those moments where we get clues to see the future development of the main trend.
- Be patient. Patience will be the one who gives you money over time, we must think that there are impulses in the stock market every day. How I know says in surfer slang, it does not matter to lose a wave since from the Dawn there are waves all at all hours.
- Wait enough time for the development of the operation. Leave him time at the price that he does not hurry, and patience will make us earn money. Here many operators sin of inexperienced when leaving run your losses, but not your profits. Take care of the losses that benefits are taken care of alone.
- The old saying ‘nobody has ruined taking profits’ is one of the Worst advice ever. This statement has its detractors and their followers that each analyse their operations and their probability of success.
- Be impatient. Large losses and small losses are always the worst losses. We can consume a position with a side market that makes us shrink in health, patience and humour.
- Never, under any circumstances, add to a losing position. This activity is called averaging. Yes, it is true that you can sometimes make averages if we are witnessing a setback, the problem is whether it is a retracement or a market shift.
- Add positions in what is working; decreases in what not. It is very skilful to start building a position with a small part and depending on the development go adding small parts up complete it This is an art, but if you are serious the big one’s benefits with few risks are here.
- Do not operate until the fundamentals and the technical aspect coincide. Nowadays neither technicians nor fundamentals tend to coincide so that we must be careful with this rule.
- When you have a bad run, close all the positions and leave the trading for a few days. A Trader is not objective if it is conditioned by significant losses in this world it is not about recovering but to beat the market.
- When you are on a good run, increase the size of the position. Beware of accumulating too many positions without holding the trend.
- When you accumulate, accumulate between 25% and 50% of the previous position.
- Think like a guerrilla and fight next to the winning side. If no side is winning, it is not necessary to fight. Again, more on paper seems all very nice until you feel one at the table in front of the screens and that’s when everything changes. There are a lot of people that with an exquisite respect for their rules, they stay afloat in a very short time.
Fulfilling these traiding rules is sure to earn money, but along the way there will be many falls and relapses.
I can highlight a phrase that my mentor told me in my beginnings “the Patience will make you earn money in the market “and he did not lack reason because in many cases impatience has been our worst enemy.
Do not miss our Learning Forex: Lesson 5