What is the 3M rule?

3M stands for the first of the three words Mindset, Method, and Money management. This means that if you want to trade well, you need a Mindset, a Method, and Money Management.

What is correct thinking?

Correct thinking is very important in trading. Many Traders, especially new traders, ignore or take this issue lightly. Correct thinking in Trading has many factors. Can briefly point through a number such as
  • Trading is not the way to get rich quick
  • More than 90% of traders participating in trading will lose money
  • No one can properly analyze all market situations
  • Understanding the discipline is the key to Trader's success
There are many other points of thought about trading and the factors mentioned above are just examples. However, having this right mindset helps Trader in the right direction and not be shaken mentally.

Many veteran Traders believe that having the right mindset determines about 60-70% of winning in trading.

What is the correct method?
The correct method here is the correct trading method. Traders can trade with Price Action, Ichimoku, Heiken Ashi, private trading, etc., however, it takes a lot of time to turn the tool into their own, expressing the personal, appropriate ego. for the long-term or short-term trading or scalping that Traders are using.
  • A correct trading method will include many factors such as
  • What state is the market currently in (trending or sideways)
  • Determine the trend like
  • Where is the entry point
  • Where is the stop loss
  • Where is the take profit point
  • What is the trailing order of the stop loss?
Often veteran traders turn these elements into trading rules - and follow the rules of action.

Many people believe that the correct trading method will account for 10-20% of the probability of a Trader's success

What is true capital management?

Capital management is a very important part of a successful Trading plan. Capital management helps Traders to ensure the safety of their capital. Capital management can include a number of factors such as
  • The volume of orders per order
  • Accepted loss percentage per order (1-5% for example)
  • Percentage of losses accepted per trading day
The trader will have his own elements though.

Capital management accounts for about 20% of a Trader's likelihood of success

So you already know about the 3M rule. Without enough 3M and especially without the right mindset, you will never be able to succeed, whether you use the super EA, the super robot to trade or you have in the hands of George's trading system. Soros.

To be successful in the trading "game", remember 3M clearly