The 10 Golden Rules to Successful Trading

Thank you Adam.

I certainly agree with everything you have said. But I really don’t know how to think about, or go about, setting an objective for a trade. If you believe in “letting your profits ride” why would you not not rely on a judicious stop and let the market take you out of a profitable trade? After all, nobody can predict where the market will end up today, this week, month, year.

Hi Adam,

Thanks for interesting video.Everyday I see your email & update the market I did make mistake few times for not discipline especially when come to loses.Now I try to study the game plan when I did make mistake.This video is very interesting I play few time To make myself upgrade and understand.I’m singapore I would to know about the new indicator CRB INDEX does it work for the different country,especially in Singapore,Hongkong or some other in Asia.

Once again thanks for everthing.

Yours

Mustaffa Kamal

Thanks Adam.

Great advice as always! In regards to the video, I’d love to get your thoughts on where to place a stop loss when you initiate a trade. I typically trade options and find this to be one of the most difficult aspects of managing a trade. Your thoughts would be greatly appreciated.

Thanks,

Mitch

Great advice as always! In regards to the video, I’d love to get your thoughts on where to place a stop loss when you initiate a trade. I typically trade options and find this to be one of the most difficult aspects of managing a trade. Your thoughts would be greatly appreciated.

Thanks,

Mitch

Mitch,

Stop loss is one of the aspects with which I am struggling. Market club will get on the correct side of the trade and give you a head start but its all useless unless the stops are placed properly. So far I have not found the correct way and maybe there is no correct way - it depends on each trade.

One thing I have learnt - determine the stop before you take the trade. That will tell you what is your risk and a good insight into the position size. This has also forced me to make trades at places where if it goes in the wrong direction,I get out with a small loss.

The general theory of stops (dollar stop, % stop, chart stop etc) is just the beginning and is not very helpful unless one is able to translate it in practical terms.

Trikaal

Hi Adam-
I do need to follow these rules, specifically trading with the trend. The trend is your friend and when I worked in investor relations at a fortune 500 company, it was what the money managers did all the time. I sometimes want to pick bottoms and tops, but maybe I need to give a little bit in return for a confirmation signal on the trend. Thanks for the short message while on break from working on my LCD TV Reviews Website.

Hello Adam

Enjoy your videos very, very much. I am a fan of Market Club and of your insights, perspectives and comments.

But I would really like to hear what you have to say about my first question. Under what conditions would a trader’s “objectives” override the advice to “let your profits ride.”

Thanks

Ralph

Ralph,

One suggestion I have that many professional traders use is to cut a position and take profits when it hits a target zone. The other part of the position is left to ride as you are playing with house money. You protect the remaining position with stops that lock in a profit. There is no magic formula for this, as it’s really a personal choice.

I hope this addresses your question.

All the best,
Adam

Excellent! Thank you Adam. Incidental costs (extra broker’s fees have to be factored in) but that is a great suggestion! Appreciate your response.

Adam, I like to watch your daily commentary.
But I wish that most of those the seek to be traders realize today that although they need a broker to trade, they can utilize amazing online technology, and make their own decision based on their methodology.

there is no need to listen to any one.
Myself as a broker, I strive to set people online and give them a few guide lines as far as money management, if they request it.
I belive in independence, and letting traders move with their risk tolerance and risk. Sites like your that combine education along with essential rules, can teach some serious skills.

I wish you well, and thank you for the ongoing effort.

Matt

Thanks for selflessly providing these training video and articles. I have been following (not trading though) the trade triangles for some time now and note there are no targets or stoploss points when you initiate a trade based on the triangles. Does MarketClub indicate these? Thanks

Stop Losses:

Swing traders place stops at the bottom of the candlestick they bought on.

Position traders usually place a percentage stop, usually 8%

This is all personal preference, I place mental stops on the bottom of candle I bought on and when my phone signals a trade going in the wrong direction, I immediately sell my position. I don’t use real stop losses because I’m not willing to sell my positions at “market” price as I only trade 2x etfs where market makers love to screw you.

Cheers,
Dan