A Trading Rule To Live By:

[mrsoul]

Don't trade unless you KNOW that you will make money before you start trading.
Nearly all of the traders making 7 figures follow this rule.

If you need to test your method, then trade live the SMALLEST size possible.
I like trading live the smallest size possible when testing out a new method ,as opposed to demo trading, because when live trading (regardless of size) your focus is substantially greater and your senses are much keener.
It is easier to pick up new ideas when live trading, that you might not have picked up demo trading, because your mind is sharper and more focused.

I wish that I would have adhered to the above rule when I first started trading.
That way I could have banked all that wasted cash and saved it for the day when I KNEW that I would make money even before I began trading.

Good Luck To All.

What are your thougts?

-Take Whichever Way Works-
Bruce Lee
Jeet Kon Do

 

[Hollu$]

My Number One Rule:-
Do at least a years worth of reading/research before you make a trade.

Thats what I tell my friends when they ask me what to do!

 

[Masquerade]

Rubbish - you never "really" know. All you can do is make the best decisions possible but you never know you'll make money as do none of these so called big traders. A fair few of them find themselves in good opportunities by just being fortunate ie. being short equities on 9/11

 

[everyonerich]

youre not gonna listen to me about this... TRIPLE UR DEMO ACC TWICE BEFORE TRADE REAL!

 

[mrsoul]

youre not gonna listen to me about this... TRIPLE UR DEMO ACC TWICE BEFORE TRADE REAL!

good post everyonerich.

 

[montmorencyt2w]

If you need to test your method, then trade live the SMALLEST size possible.
I like trading live the smallest size possible when testing out a new method ,as opposed to demo trading, because when live trading (regardless of size) your focus is substantially greater and your senses are much keener.
It is easier to pick up new ideas when live trading, that you might not have picked up demo trading, because your mind is sharper and more focused.

I think a combination of demo trading and small-size live trading is ideal.

Treat the demo as research, especially into techniques you may not have used before.

But risking your own money, even small amounts, sharpens the senses.

 

[mrsoul]

I think a combination of demo trading and small-size live trading is ideal.

Treat the demo as research, especially into techniques you may not have used before.

But risking your own money, even small amounts, sharpens the senses.

Happy Trading Mont

In at the right time, out at the right time, out most of the time.

 

[shadowninja]

Man who walk through airport turnstile sideways going to Bangkok.

 

[virtuos0]

Rubbish - you never "really" know. All you can do is make the best decisions possible but you never know you'll make money as do none of these so called big traders. A fair few of them find themselves in good opportunities by just being fortunate ie. being short equities on 9/11

That is true, for each individual trade. But over the long term there are a lucky few out there that are good enough that they KNOW they will make money.

 

[tripleogstar]

Don't trade unless you KNOW that you will make money before you start trading.
Nearly all of the traders making 7 figures follow this rule.

If you need to test your method, then trade live the SMALLEST size possible.
I like trading live the smallest size possible when testing out a new method ,as opposed to demo trading, because when live trading (regardless of size) your focus is substantially greater and your senses are much keener.
It is easier to pick up new ideas when live trading, that you might not have picked up demo trading, because your mind is sharper and more focused.

I wish that I would have adhered to the above rule when I first started trading.
That way I could have banked all that wasted cash and saved it for the day when I KNEW that I would make money even before I began trading.

Good Luck To All.

What are your thougts?

-Take Whichever Way Works-
Bruce Lee
Jeet Kon Do

I agree with your idea of trading small on a live account. However, I disagree with the idea that you don't trade unless you KNOW you are going to make money. This implies people should in general be correct 100% of the time. KNOWING that you will make money is called ARBITRAGE. And even that has risks when implementing the arbitrage strategy. Even the likes of George Soros have lost money on trades, but like every great trader/investor says, it is not about how many times you win, it is about the size of your wins against your losses (george soros said that himself). You could win only 4 out of 10 trades you place, but if you risk management is top notch, you will still be profitable. That is the whole truth. Even top hedge fund managers like Steve Cohen have said that most his traders are correct only 50-55% of the time.
You can never KNOW you are going to make money because that is implying there is no risk involved, but of course there is. Trading is simply, a person who has a theory about the markets, and you make your trade, and let the market tell you if you are right or wrong

 

[virtuos0]

I agree with your idea of trading small on a live account. However, I disagree with the idea that you don't trade unless you KNOW you are going to make money. This implies people should in general be correct 100% of the time. KNOWING that you will make money is called ARBITRAGE. And even that has risks when implementing the arbitrage strategy. Even the likes of George Soros have lost money on trades, but like every great trader/investor says, it is not about how many times you win, it is about the size of your wins against your losses (george soros said that himself). You could win only 4 out of 10 trades you place, but if you risk management is top notch, you will still be profitable. That is the whole truth. Even top hedge fund managers like Steve Cohen have said that most his traders are correct only 50-55% of the time.
You can never KNOW you are going to make money because that is implying there is no risk involved, but of course there is. Trading is simply, a person who has a theory about the markets, and you make your trade, and let the market tell you if you are right or wrong

Unless MrSoul is pretty dim it\s obvious he meant KNOWING you are going to make money in the sense that you're system/method/skill has a positive expectancy. It's perfectly obvious that you cannot say for any individual trade that you KNOW you are going to make a profit.

 

[Hip Hop]

"What are your thoughts?"

I think sex bribery , with women bribing men with sex for gain, or to aid and abet an alternate motive, is perhaps, not such a bad deal for the bloke after all !

I mean, your little "Ding-A-Ling", feels good in there, right ?

Hip Hop, on the weekend !

 

[N Rothschild]

Rubbish - you never "really" know. All you can do is make the best decisions possible but you never know you'll make money as do none of these so called big traders. A fair few of them find themselves in good opportunities by just being fortunate ie. being short equities on 9/11

ditto, how can you KNOW your going to make money? stupid thread..

 

[mrsoul]

Unless MrSoul is pretty dim it\s obvious he meant KNOWING you are going to make money in the sense that you're system/method/skill has a positive expectancy. It's perfectly obvious that you cannot say for any individual trade that you KNOW you are going to make a profit.

This is exactly what I meant to say.
I am certainly not dim witted.
Of course no one KNOWS if they will make money on any given trade but, before you risk money, you should KNOW that you will make money in the LONG RUN- acounting for losses.
Simply put, this is how the pros do it.

 

[mrsoul]

ditto, how can you KNOW your going to make money? stupid thread..

Genics- If you read response #14, your confusion will be clarified and you might learn something.
This thread was started to HELP peple.
Always keep an open mind- It might help your trading.