From the previous article, I mentioned another 4 trading rules after you enter the trade, no 5 - Never average out a losing position, no 6 - Always update yourself with Economy calendar, no 7 - Always update yourself with the Stock news, no 8 - Always do analysis after market close.
Lastly in this trilogy of the trading rule articles, I would like to share more about the trading psychology.
Rule 9 - If you have experience 3 consecutive loss, take a break. Stock market is always changing, if you only use one strategy, it may not work all the time. Making losses in trading is something common, but if you continuously experience loss, probably it is a good indication for you to take a break. Stop trading for at least 1 - 2 week, do other stuff besides just sitting in front of the computer, go for a short trip so that you can relax your mind. Read your trading journal and revise all the good and bad trades, so that you can tweak your trading strategy to fit into the current market.
Rule 10 - Follow the rules you set. Whatever the rule is, follow it with your discipline. You can break somebody rule, but if you break your own rule, you are totally unforgiven. If you would have broken your own rules, why would you have set the rules in the first place, right? The market is always tempting you to change your own rule, frankly speaking, it is not easy for me either. Therefore discipline is your good friend in trading.
Rule 11 - Always work with your patience. Refrain yourself to enter the trade too soon even if you see a golden opportunity. Always wait for more confirmation either from the technical or fundamental point of view. Although I agree that every trader should be confident, but in trading, you need to follow the market, not your feeling, because feeling can be wrong but market never wrong. Therefore, wait and find the best timing to enter the market. If you do not trade, you are in wining position because you keep your money safely in your pocket.
Rule 12 - Always work with your passion. Without passion, trading become a job or a tool to make money, you will never experience the excitement and understand the art of trading. Somebody just aim to make money, but to become a professional trader, your aim to make money is secondary, but your primary aim is to trade well and trade right! Therefore, always trade with your passion and continue to grow in your experience and knowledge, and your success will be just a step closer.
There are many other trading rules you need to follow, and I would like to share with you at Options Trading Academy . Always trade with your passion!
I love options trading and I am here to share my humble experiences so that you can be benefited from it. You can find out more from http://optionstradingacademy.blogspot.com/
Always trade with your passion! Cheers!