The cardinal rules of trading according to the best raders in the world

One day I came up with the idea of finding the best traders in the world and then asking them about everything that is relevant for achieving success on the market. I wanted to know their full story — from the beginning, up until now. In the result, I interviewed almost 100 traders from all over the world. One of the questions was “What are the cardinal rules of trading according to you?” Check it out, what some of them told me…

I have seen many lists of cardinal rules. They are almost all the same. I will give you a different list of rules. One you probably have never seen before. There is no law against any of these things:

  • A passion for trading,
  • Self-control,
  • Humility,
  • Faith in yourself and your trading plan,
  • Being good at chart reading,
  • Being kind to others and not trying to get it all,
  • Being patient to wait for your trade,
  • Being at peace with yourself and with the markets,
  • Being joyful in the knowledge that you can win in the markets,

All of the above add up to truly loving to trade, and:

  • LOVE as “Perfect love drives away fear”.
- Joe Ross

I don’t really have cardinal rules other than limit your potential losses. If you suffer too much of a consistent drawdown, step away from trading for a while. That’s something typical, what most experienced people will tell you. Stop trading and find out what you are doing wrong.

Also realise that trading may not be for you. I always use the example that I’ve been trying to learn Spanish for the last two or three years but languages are not for me. I find it very difficult and Spanish is probably the easiest language to learn, for an English speaker anyway. I just have a terrible time. I would not even think of making my living where I had to speak Spanish.

So many people should realise that trading may just not be an appropriate business for them. As far as the cardinal rules go, I don’t have ones. That makes it sound like it’s too simple if we make some rules and be successful. And it’s not the case.

- Rober Miner

Build a plan. I can’t tell you: trend-following is better than counter-trending, swing trading is better than scalping. Everybody has to find what kind of approach is best for his personality. Whichever thing you choose, build a plan of what you are going to do.

I always say that it’s hard to make decisions and imagine how hard it is to make decisions when you are under stress. And when you are trading, you are definitely under stress, that’s normal.

Decisions should be made before clicking on the mouse. Once you have clicked, everything should already be decided and you should know what you are going to do next.

- Andrea Unger

Plan the trade, trade the plan. Define the market.

- Mostafa Belkhayate
  • Learn to allow yourself to lose or not be right.
  • Develop a procedure or trading plan.
  • Whether discretionary or automated plan the trade, trade the plan.
  • Never catch a falling knife.
  • Bulls make money, bears make money, pigs get slaughtered.
  • Determine your targets and stops based on expectation.
  • The market is always there. Trade to fight another day.
- Albert Bruno

I follow my 3 basic trading rules. When I hit something I’m not sure about step aside, fall back on the 3 basic rules and if you’re still unsure leave it. There will always be another trading opportunity.

It is better to be out the market wishing you were in, than in the market wishing you were out.
Always know what you are going to do, when you are going to do it and why.

Never chase a trade. If I miss a trade, so be it.

- Phil Newton

Rule 1: Trade what you see, not what you hope to see.
Rule 2: The bottom-line is that the market doesn’t care what type of analysis you use or how smart you are - it is always right.
Rule 3: Never hope, wish or pray as that is a sure sign that you are in a bad trade.
Rule 4: When you are wrong, you are wrong and just get out of the trade immediately.
Rule 5: Don’t be impatient and force trades to happen.
Rule 6: Never enter a trade without a money management plan.
Rule 7: Have an exact strategy for entering and exiting all trades and never deviate from it.

- Jeff Wilde

1. Plan your trades and trade your plan without wavering!
2. Do the dance you are taught until you learn a dance of your own. In other words, don’t change a system you have learned until you fully understand the system, the market and yourself!
3. Trading is a business, so know your performance numbers!

- Todd Judkins

There is more trading wisdome!

Yes, I wrote an e/book containing selected interviews with the best ones of them. You’ll find there opinions of the world-famous traders, millionaires, winners of international contests, and people who had control over market and have plenty of personal experience in this matter. Some of my interviewees had more than 50-year experience in all of the possible markets.

You can fint here: “Conversations with Forex Market Masters

I asked over 80 questions like the one above. I truly hoped to discover everything that decides about the success of the best ones, all the problems standing in the way of the profitability and possible solutions to them.

Check it out: “Conversations with Forex Market Masters