People’s mind is made up to follow some plans and instructions and to be successful trader you have to follow some simple but extremely important rules, which will make you life easier and your trading a lot more profitable. Next are listed one of the fundamental rules of how to trade. Follow these and line up with the best traders around the globe.
The most important rules in the life of a Forex traders
1. If you want to stay alive in this business – leave the hope behind and use Stop orders!
2. When you open a position(start trading), start looking for signs that you are wrong, if you find such signs – close the position as soon as possible before the stop cut you off.
3. Keep calm, more excited you get the more you are likely to start losing money.
4. Follow your plan – do not jump in the hottest news on the markets, because you might birn.
5. You are trading non existing goods so feel the emotions behind all these deals.
6. Be confident in yourself and your plan.
7.Do not trade too fast be patient and wait for 3-4 sure and profitable deals.
8. Do not underestimate that nothing is guaranteed, always TRIPLE check.
9. If you come to trade with the mindset of getting rich quick, then you are doomed. There is no such a thing as easy money you have to work for all.
10.Do not focus on the money, focus on your trading operations and executing them in the best manner possible – able to achieve it you win.
11. If you focus on money only and this is the only one goal you got – then you are likely to hand over your money to other traders that are focused on their way of trading rather than money.
12. The best scenario to minimise the risk is not trading. If the market is slow and there is no movement in the positions, just sit and watch – make a plan that is worth the risk.
13. You don’t have to trade 5 days per week, you can achieve better results trading 3-4 days per week but a lot more relaxed and with sober mind.
14. Cut the risk with staying out of the market for some periods of time and again – ALWAYS USE STOPS!
15. Do not think what the others think for yourself, just be yourself and play your game.
16. Do not leave a losing(red) position for overnight – this way you risk to NULL your account.
17. Keep the gaining positions(orders) as long as the market allows, do not rush to close the deal and then the market continues its trend – while you stay out and regret your greed.
18. Always use Money management system, do not overload your positions and trade.
19. There is no logical reason to have doubts when placing stops.
20. Losing is part of the game, accept the money you lost and continue as planned. Remember even the professionals make mistakes – hell they even make more mistakes than beginners due to being overconfident.
21. When some trade is a lose, just stop for a while chill out and think it over with fresh mind!
22. Do not risk more than 2% of your capital to be in danger by a single position.
23. Use daily graphics to get to know the 30 days trend, hours graphic report for the daily trade, and 5 minutes graphic to identify the trading entry positions.
24. If you have doubts entering a trade, just don’t, there is no need. Just use proper stops and all will be fine.
25. Adding funds to a losing position is like throwing money into the fire, just cut the loses and start new trade.
26. Add money to positions(trades) on your winning road.
27. Adrenaline is a sign that you are losing control and your decisions are getting wronger and wronger. In order to keep your profit stop trading.
28. Look for proper ways not to trade.
29. You have to predict the trend, if you jump when the direction is clear then, you are likely to lose all your money.
30. Overconfidence is your biggest enemy – lame excuses wont help you. Cut the loses and keep trading you can always gain back what you have lost.
31. Self discipline is what you always need, but you will get it under control once you get broke on one account, then you will realise how important it is.
32. Getting your profits out of your trading account into your bank account will make you realise that what you are doing is important and actually you can make a living out of it.
33. Use multiple trading positions do not risk your capital on 1 position only.
34. What will make you better trader is to know how to limit your risk, not like the amateurs do – going for high money profits and losing all their money in the process.
35. Do not be a hero – heroes die first on the markets. Trade smart!
36. Remember at the start you will probably lose all that you have invested, but that is the must have learning experience that you need in order to become a pro trader.
37. Do not go over 10-15% risk on losing position – bad habits to invest more and risk more have to be limited.
38. Who is responsible for your trade – that my friend is not your forex broker, some country or other lame excuses – that is YOU and only you.
39. Read a lot – 20% of the time trading – 80% reading news and forecasts.
40. Focus on what you are ready to lose, not what you are going to profit.
Following the above simple rules will make you able to react on almost all situations in the complex forex market. Just be cool, stay chill and think with your brain not with your heart. I wish good luck to every trader out there.