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TRADING DISCIPLINE BY ZULU

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successodezulu20
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101 views17 pages

TRADING DISCIPLINE BY ZULU

Uploaded by

successodezulu20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TRADING DISCIPLINE

KEYS TO
SUCCESSFUL
TRADING

Trader_Zulu
RULE #1

NEVER TRADE WITH


FUNDS THAT ARE
NOT YOURS.
ALTHOUGH TRADING CAN BE
VERY PROFITABLE, IT IS
NEVER ADVISABLE TO USE
MONEY MEANT FOR SOMEONE
OR SOMETHING IMPORTANT
TO TRADE NO MATTER HOW
GOOD YOU ARE.
RULE #2
THE MARKET PAYS
YOU TO BE
DISCIPLINED.
TRADING WITH DISCIPLINE WILL PUT

MORE MONEY IN YOUR POCKET AND


TAKE LESS MONEY OUT. THE ONE
CONSTANT TRUTH CONCERNING THE

MARKETS IS THAT
DISCIPLINE = INCREASED
PROFITS.
RULE #3
BE DISCIPLINED EVERY
DAY, IN EVERY TRADE,
AND THE MARKET WILL
REWARD YOU.
IF YOU TRADE
WITH DISCIPLINE NINE OUT OF TEN
TRADES, THEN YOU CAN’T CLAIM TO
BE A DISCIPLINED TRADER.
IT IS THE ONE UNDISCIPLINED
TRADE THAT WILL REALLY HURT
YOUR OVERALL PERFORMANCE FOR
THE DAY. DISCIPLINE MUST BE
PRACTICED ON
EVERY TRADE.
IF I LOSE $200 ON A TRADE, BUT I
WOULD HAVE LOST $1,000 IF I HAD
REMAINED IN THAT LOSING TRADE,
I CAN
CLAIM THAT I SAVED MYSELF $800
IN ADDITIONAL LOSSES BY EXITING
THE
BAD TRADE WITH HASTE.
RULE #4
AS A NEWBIE, ALWAYS BE
MINDFUL OF YOUR MARGIN
NEVER RISK MORE THAN 2-
5% OF YOUR PORTFOLIO ON
ONE TRADE.
REMEMBER:

PORTFOLIO – THE TOTAL


MONEY IN YOUR TRADING
ACCOUNT
MARGIN – THE AMOUNT OF
MONEY USED TO OPEN A
POSITION
RULE #5
ALWAYS LOWER YOUR
TRADE SIZE (MARGIN)
WHEN YOU’RE TRADING
POORLY.
WHY CONTINUE TO LOSE ON
FIVE LOTS PER TRADE WHEN
YOU
COULD SAVE YOURSELF A LOT
OF
MONEY BY LOWERING YOUR
TRADE
SIZE DOWN TO ONE LOT ON
YOUR
NEXT TRADE?
RULE #6

NEVER BE GREEDY

A TRADER’S WORST
ENEMY IS GREED.
THE MARKET HAS REWARDED YOU
BY MOVING IN THE DIRECTION OF
YOUR POSITION, HOWEVER, YOU
ARE NOT SATISFIED WITH A SMALL
WINNER. THUS YOU HOLD ONTO THE
TRADE IN THE HOPES OF A LARGER
GAIN, ONLY TO WATCH THE MARKET
TURN AND MOVE AGAINST YOU.
RULE #7

YOUR BIGGEST LOSER


CAN’T EXCEED YOUR
BIGGEST WINNER.
IF YOU ALLOW A LOSS TO EXCEED
YOUR BIGGEST GAIN THEN,
EFFECTIVELY, WHAT YOU HAVE WHEN
YOU NET OUT THE BIGGEST WINNER
AND
BIGGEST LOSS IS A NET LOSS ON THE
TWO TRADES. NOT GOOD.
RULE #8

BE YOURSELF.
DON’T TRY TO BE
SOMEONE ELSE.

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