Study Guide for Come Into My Trading Room - Forex Factory

THE ORGANIZED TRADER 139
Answer 98
Combination 4 is correct. Give yourself four points for choosing the
right answer.
Strict money management rules are the keystone of any trading plan;
they allow you to survive and succeed in the long run. A systems trader
must be absolutely strict about his analytic rules, but a discretionary
trader has some degree of flexibility. As long as he analyzes multiple
timeframes and does not trade against his rules, he has some latitude in
choosing his indicators and methods.
Answer 99
Choice 2 is correct. Give yourself four points for choosing the right
answer.
Beginners are attracted by tales of huge profits, but professionals focus
on survival first. This is why any good trading plan is built on the basis
of money management rules. The next goal is to grind out steady profits.
Once that goal is being consistently achieved, we can spend more time
looking for extraordinary opportunities. Then, if our analysis is right and
the market cooperates, we sometimes achieve extraordinary returns.
Answer 100
Sequence 5 is correct. Give yourself four points for choosing the right
answer.
Serious trading begins with good records. They come first because
they allow you to learn from mistakes as well successes, while you
experiment with different techniques. Setting money management rules
and recording your compliance with them is the next most important
step. The third stage is the development of a decision-making tree.