If you are willing to trade your own money in any market of the capital markets such as stocks, forex and options you will need a great length of discipline, knowledge and determination in order to make money.

There are many ways of making money when you are trading, and the same way you make money you lose money if you are wrong.

So here are the Rules of a Successful trader by Inside Out Money:

-Know yourself

You must know yourself to define what kind of trader you are. How long are you comfortable to be in the market for, couple of minutes, days, months? What is your risk appetite, can you sustain big losses? Do you know when to stop, when should you get your profits or losses and finish for the day? This is the basic for setting out a strategy of trading, you must develop one where you feel comfortable.

-Risk management

Nobody likes to lose money, but you must learn how to cut your losses. If you are using leverage be extra careful and don’t over expose yourself. Leverage is a very good thing, if you don’t need to use it.

-Get informed

I don’t need to say how important it is to know everything possible about what you are trading. Check how the market works, volumes, volatility, trading times, margin requirements, costs. If you are trading stocks check the company, what kind of factors will influence the price of the stock, when are they releasing results or paying dividends.

Also check the news, see what is happening in the world that might affect what you are trading, this is good so you are also on top of what is happening around you. Check if you can get hold of some analyses about your markets.

-Have a plan

Before you get in to any trade have a plan. To get here you probably are aware of what is happening around, you have a good theory about the product and now you have to plan how much are you going to allocate to this position  how much you want to win and how much you are prepared to lose. Make a plan and follow it.

-Be disciplined

Study, get informed, get to know yourself very well, make a plan and STICK TO IT. Many traders fail because they are not disciplined enough to follow their own strategy. That is why it is so easy to make money on a demo account but when you are trading real money things change completely. Do not trade if you are bored or if you have a problem, it will affect your decision ability to make the right call, you should enter in to a trade when you see where you will get in and get out, meaning taking your profit or losses.

Remember you must learn to lose. You can make 10 wining trades in a role, but if you let your loses run you will always lose more than you won. Many traders do not use a stop loss, because they are disciplined enough to get out of the market, if you can’t do that, use the stop loss, make a good study and give it some room, as in very volatile markets such as the forex the market can pass a resistance or support point by a few pips easily.

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