It goes without saying that having a concrete plan always leads to better results than improvisation. And this is especially true when trading in financial markets. Learning and following strict rules when trading will greatly improve your outcomes and start providing you with the skills and feedback you need to become an expert trader. Here’s a list of the top 5 rules to follow when creating a trading strategy.


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Always stick to the plan

A trading plan is one of the most important tools for any successful trader. It contains written rules that state how you enter and exit positions, as well as how much of your account to dedicate per trade.

When you’re developing a trading plan, consider opening a test account and trading with virtual currency for a while, until you’ve decided that your plan works. Remember that trading outside the plan, even if your trades turn out well, will not result in getting the feedback you need to be a consistent trader.

Take it seriously

When you’re crafting a trading strategy, always keep in mind how much time you’re planning to dedicate to trading. While trading can be a fun and profitable hobby for some, always keep in mind that you’re using real money and take your trading actions seriously. Even if trading is a hobby for you, always treat your trading strategy like a business plan – develop it, stick to it, be mindful of the risks, and make sure that you’re following through. Following a trading strategy is especially important when you trade with leverage.

Always test

Whenever you develop a sound trading plan, you don’t want to rush in and start trading on it. Instead, use techniques like backtesting and chart analysis to examine how your trading plan would have worked in the past.

While past performance is not an indicator of future success, it will give you some idea of how accurate your trading ideas are, and you can exactly measure how much profit you would have made. If your trading plan is putting out positive results during testing, that’s a pretty good sign that you’ll have success with it in the real world as well.

Make sure you manage risks appropriately

Leveraged trading is one of the most profitable ways to make money, even during a bear market. What is leverage and how does it relate to trading?

Leverage is a very powerful tool allowing traders to maximize potential gains. It allows you to increase the size of your trades and potential profits relative to the amount of your own deposit. In the cryptocurrency industry, Monfex is the leading trading platform which allows trades to use the power of up to 50x leverage. Monfex offers non-expiring futures contracts on 12 of the most liquid and popular cryptocurrencies.

However, trading with leverage is risky, and it pays to make sure your trading plan has explicit rules for managing risk – and protecting your trading account. Set specific goals like ‘Trade only 2% per trade’ and ‘Trade only twice a day’ to minimize the risk to your capital. Additionally, following these rules will instill the discipline needed to turn consistent profits.

Never stop learning

While your trading plan should be clear, and you should stick to it with discipline, trading is a skill like any other, and you will definitely develop your own preferences, intuitions, and knowledge as you continue to trade. Don’t discount an idea just because it doesn’t fit your plan – instead, revise it periodically, for example, every two or three weeks.

Your plan could also rely on expert-based insights from professional traders, like the analysis published by Monfex on a daily basis. Using Monfex’s professional recommendations can help you not only develop your own trading strategy but make a profit while doing so.

Trading strategy is a key to success

Having a developed trading strategy and sticking to a clear trading plan is the sign that separates losing traders from profitable ones. Whether you’re trading Bitcoin. Dash, OmiseGO, or any other coin, your plan should always come first. By following the tips we’ve listed, and staying disciplined, you can achieve trading success. Don’t trade without a plan, because once you have one you’ll be that much more prepared to trade in the real world.

And where should you trade? Well, one of the best places to start trading as a beginner is Monfex, the industry-leading crypto trading platform. Not only does Monfex offer to trade on the 12 most liquid cryptocurrencies, long and short positions, up to 50:1 leverage, but it also has expert traders working every day to analyze the latest market trends and deliver the most important information, so that you’re always making the most informed trades possible. What are you waiting for? Start trading today!

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Posted by Oliver Dale

Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all.

All content on is provided solely for informational purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, product, service or investment. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate.

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