What Works in Trading? Part 2

In this blog, I attach the ‘climax’ - James’ four part ’secret to FX trading success’.

I totally agree with the four principles:

1. Success requires time, effort and preferably a mentor. This idea is in line with the new discoveries in Neurology.
2. Create a set of trading rules and follow them.  I believe in Mark Douglas’ dictum that all newbies should start as mechanical traders. Having said that, I know from experience that to succeed each trader will have to make a set of trading rules his own.
3. Have a set of risk management rules and follow them.
4. Learn to use the magic of compounding rather than looking for ‘instant’ wealth.

All good stuff as general principles. Of course the devil is in the details of implementation. This is where the work of Daniel Coyle (The Talent Code) and David Rock (Your Brain at Work) come in.

The caveats I mentioned in What Works in Trading also apply here.
secret2.pdf