25 Rules trader: Mantra to work on discipline


The success of any trader depends on its discipline. The share of discipline in successful trading is 90%. The formula is very simple: Trade with discipline - and you could do it, or Trade undisciplined - and you lose.

For 20 years, I am a trader and member of the Chicago Board of Trade - Chicago Board of Trade (CBOT). During his successful scalper on trading floors I had to trade in different markets: it was 30-year Treasury bonds at CBOT, S & P 500 at the Chicago Mercantile Exchange (Chicago Mercantile Exchange - CME), as well as securities on the London International Financial Futures Exchange ( London International Financial Futures Exchange - LIFFE). And now the best of the free time I trade futures E-mini Dow on CBOT.

I received a bachelor's degree in business administration from the University of Denver, but sverhodarennym student himself never considered. Formal education in the field of technical analysis, I have not. I can not even build the formulas Fibonacci levels or moving averages - not to mention how to deal with it all. Education in the fundamental analysis of the markets have neither. I do not understand the cause-effect relationship between the actions of the Operations Committee on the Federal Open Market (FOMC) and the behavior of prices of Treasury securities or other assets.

Then how did I get to be successful from day to day trading the markets for over 20 years? The answer is simple: I trade with discipline and respect for the market. When the input is incorrect, the transaction closes immediately, and when the input is good, the excessive greed takes a back seat. I was quite happy with a small profitable trades and small losses.

Currently, I teach my clients trading techniques, discipline and risk management. And my teacher was one of the most prominent traders working on CBOT, - is David Goldberg. David long scalped on a spread on a platform for futures trading in wheat and at the same time he was head of Goldberg Bros. - This is one of the largest clearing firms of their time on CBOT, CME and the Chicago Board Options Exchange (Chicago Board Options Exchange - CBOE). It was he who taught me the rules of trading discipline. I listened to his advice and eventually worked more successfully. But now he was a student teacher.

Wheel of Success

"Wheel of Success", as I call it applied to trading, has three spokes. The first needle - this content. The content includes all internal and external market information that traders use to make decisions.

The most important type of content - this is inside information about the market. In fact this is the time and the prices that can be obtained on the exchange. In after all, we all make trading decisions in real time and start from the time and price. To effectively scalping we need a live stream of quotations, reliable order execution and a good trading platform. Without immediate access to information on prices and then we would trade in the dark.

The second arm - is a mechanic. This refers to the way you get access to the market and what methods to use the opening / closing of deals. To be successful in trading, you need to master the principles of mechanics. A common mistake on the keyboard can cause thousands of losses. The whole trading day can ruin because of an error entry.