Three Trading Principles

Three Trading Principles to aid in your success as a Trader.

Read this articles in June issue of TFJ and the 3 principles that can aid in anticipating and avoiding mistakes are:-

1.   Probability
Traders must train themselves to think in terms of probability for three very important reasons:-
a.   No one knows 100% whether a trade will be profitable or not.
b.   No one knows how much money will be made or lost on a trade.
c.   If a trader does not control the profit outcome and does not know with 100% certainty which trade will work, he should spend 100% of his time concentrating on the only element of trading that he can control - the risk.

2.   Self-Discipline
Discipline is a two part process:-
a.   Preparation - mental preparation, technical preparation, fundamental preparation, etc.
b.   Execution - Risk control and profit protection.

3.   Responsibility
Adopt the attitude that he is responsible for his trading.  The market, the brokers or computers are not responsible - only the trader.