I have been trading for almost a decade. In the first 3 years, I invested AED 1.2 million in the stock market. Unfortunately, due to my lack of proper techniques, I lost most of the amount. My balance dropped to just AED 100,000. Friends and family made fun of me, calling me reckless and irresponsible. Their harsh words made me doubt myself 😔. But deep down, I wasn’t ready to give up 💪. I promised my partner that I would try one last time and use the remaining money wisely.
I spent months analyzing charts 📊, learning from my mistakes, and developing my own trading rules. The result? I turned AED 100,000 into an amazing AED 30 million in just three years 💰🚀. This wasn’t luck, it was the result of disciplined trading and continuous learning 📈. In the following lines, I will share my strategies and basic principles that you can apply too.
Basic rules of trading for beginners and professionals 🧠
1. Understanding Market Sentiments 🧐
Market sentiment can be your biggest guide. Keep a close eye on trading volume and market activity:
• If the trading volume is high but the price stops falling, it often means that the pullback is over.
• If volume remains strong but prices stop rising, the uptrend may be nearing its end.
During the ascent:
• Moderate and steady increases in volume indicate a strong uptrend 🔼.
• Sudden jumps in volume may indicate a potential reversal 🔄.
During landing:
• Increased volume upon breaking key levels confirms the continuation of the downtrend 🔽.
2. Critical price levels 🔑
• Identify resistance and support points and trend lines on the chart.
• Use tools like Fibonacci retracement to anticipate critical levels 📐.
• Be quick to act when prices approach or break these points ⚡.
Effective time frames for trading 🕒
• 1-minute chart: Best for accurately determining entry and exit points 🎯.
• 5-minute chart: Ideal for following price action in short-term trades ⏱️.
• 1-hour chart: Helps track the general market trend 📉📈.
Important note: If the trade goes against you, do not rush to make up the loss immediately. Accept the loss, readjust your plan, and consider the next trade as a new opportunity 🌟.
Simple and highly successful trading method 💡
This strategy is suitable for beginners, and with discipline it can work for anyone. Let's get started:
1. Setting up moving averages 🔄
• Add three moving averages to the chart:
• 6-day moving average (for short-term trend).
• 20-day moving average (for medium-term trend).
• 40-day moving average (for long-term trend).
• The 40-day moving average acts as a major support or resistance level 🛡️.
2. Capital Distribution 💰
• Divide the capital into three equal parts:
• Stage 1: When the price breaks the 6-day moving average, invest 33% of the capital.
• Stage 2: If the price breaks the 20-day moving average, add another 33%.
• Stage 3: Once the price crosses the 40-day moving average, invest the remaining 33%.
3. Exit Strategy 🛑
• If the price drops back below the 6-day moving average, sell the first position.
• If it drops below the 20-day moving average, sell another 33%.
• If all three averages are broken, sell everything and get out of the trade completely 🚪.
4. Re-entry Rules 🔁
• If the price bounces back and crosses the 6-day or 20-day moving average again, re-enter with the same allocation strategy.
5. Sell at the top 🤑
• Use the reverse method of selling:
• When the price starts to decline, sell 33% when it drops below the 6-day moving average.
• Hold the remaining portion unless the price breaks the 20 and 40 day moving averages.
Discipline is everything 🎯
This strategy may seem simple, but its success depends on strict execution 🔒. Emotional trading or ignoring stop loss levels will lead to unnecessary losses 📉. Stick to the rules, and you will see consistent results over time ⏳.
This method changed the course of my life and my business ✨. While no strategy guarantees 100% success, following these principles can help you navigate the markets with confidence and reduce risk 🚀.
