One of the most important things that help traders to profit in the market is to understand and respect the basic and essential principles of trading. It also helps the trader to focus on the essentials of trading.

In this article, I would like to share with traders 10 important trading principles to remember in trading.
1. A trading system that wants to be profitable in the long term needs a rate of return that is greater than the risk in each trading strategy.

2. A trader's trading system needs to be built on quantifiable bases, not on your own personal opinion.


3. Start analyzing with price charts on large timeframes such as D1 or W1 to capture the market scene, and then return to a lower time frame to trade in the main trend. As such, better rates are obtained if you trade the long-term trend.

4. The more times the price tests support or resistance, the more likely it will be broken. Broken resistance could become new support and likewise, broken support could become new resistance.

5. Moving averages can help traders identify trends and generate trading signals for traders, as well as an appropriate stop loss and exit times.



6. The uptrends usually don't have long term resistance, and the downtrend too, usually doesn't have long term support. That said, resistance in an Uptrend and support in a Bear trend are usually easily broken.

7. According to market witch Linda Raschke, she said that the larger the gap in the market, the more likely it is that the market will move in the direction of gap formation and continue the trend.

8. The market's last hour often tells the truth about the true strength of a Trend. "Smart" cash flow will usually reveal their move at this final hour, they will continue to mark positions that are beneficial to them on the chart. The trend is usually likely to continue if there is a strong closing at the end. On the contrary, the Trend is likely to weaken on a weak close.


9. When the market is above the 200-day moving average, it is identified as an uptrend. And vice versa if the market is below the 200-day moving average. Bad things that happen below 200 days are determined to be bearish.

10. Watch less chart, trade less, less complicated transactions, your trading will be much easier.

Here are 10 powerful rules in trading summarized from the famous trading book Trading Habits: 39 of the World's Most Powerful Stock Market Rules. Good implementation of these principles can partly help traders improve trading results.