TIP: Why do we need trading rules?
|The answer is that neither technical nor fundamental analyses are exact sciences, and the interpretation of indicators and price patterns can vary from trader to trader, especially when emotions can distort perception.
A set of trading rules allows the trader to repeat successful trades on a consistent basis. Please don't see a trading system as something that you will follow blindly – that would not be disciplined nor smart! A trading system should be considered more like a guide for the trader to capitalize repeatedly on a specific market event. If you can identify and quantify market conditions associated to a specific event, then you will have the opportunity to formulate an hypothesis and start developing a strategy to capture certain market movements.
In short: you don't need trading rules to dictate your decisions, but rather to guide you through the decision making process. Read More
Do you want to learn more?
REPORT: Trading Rules are the Compass to your Success - FXTechstrategy
REPORT: Consistent Trading Success Requires Following Rules - Woody Johnson
REPORT: What is Driving Your Trading? - Woody Johnson
PODCAST: Rob Booker's 23 Rules for Trading - Rob Booker
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