Trading Rules

I just started to blog about trading now. But I always like to explore other traders’ blogs. Nestled somewhere in their writings is often a nugget that helps me to improve my own trading skills. I love to read other traders’ trading rules and their mindset or trading habits that makes them successful. 

To be frank , my first impression is that trading does not really need rules. You buy or sell a stock at your wish. You decide to get in and out of a trading position anytime you wish. You decide when to trade and when not to trade. If you are trading online at home you could even decide to trade half naked , have a bottle of beer by your side and all the freedom you want. Who cares ? The only rule probably is that you need to have sufficient money in your trading account to take a trade.  Why make things more difficult then by having the need for rules ?

All I can say now is that if anyone were to trade without a set of structured trading rules , then likelihood is that he will not succeed in trading.

In most countries if not all , there are traffic rules. Can you imagine if there are no rules ? Even with rules defined there are still traffic offenders. At times I also tried illegal U-turn at traffic junction , if I notice no traffic police around. In this instance , rules are established by the government or traffic authority. We follow rules set by others.

In trading , we define , set and follow our own rules. Is that even more difficult ?  Obviously , because no one will fine or punish us if we break the rules. So , I must say this topic is one of the most difficult in trading lessons ! 

Over the years I copied some of the trading rules from professional traders and also invented my own rules as I made trading mistakes. I shall have them posted individually under this category for further discussion and comments.