Golden Rules for Forex Trading.
Here are ten rules that I think are important for trading forex. I divide the list into five Dos and five Don'ts.
Dos
1. When trying out a new trading strategy, always test it in a demo account, or with a small amount of money, before you commit more money to it.
2. Always keep a record of each of your trades, with details of: why you got in, how you got out and why it turned out the way it did.
3. Have a personalised trading plan and update it as you learn from the market.
4. If you are unsure of a trade, stay out. It is better to miss an opportunity than to have a loss.
5. When trading, keep up-to-date with both the fundamentals and technicals affecting the market. A trader in the dark is a trader in the red.
Don'ts
1. Don't trade with money you can't afford to lose! It will affect you emotionally, and you will most likely lose it to irrational trading.
2. Don't follow someone else's trading advice blindly. Always know why you argetting into a trade, and how you are going to get out of it.
3. Don't be concerned about being right. Just be concerned about being profitable.
4. Don't over-leverage. Chances are that your account will be decimated before you can recoup your losses and go into profit.
5. Don't revenge-trade the market. Vent your frustrations elsewhere after a loss.
Fundamental Rules for Forex Trading. Dos and Don'ts Guide for Currency Investing. A Foreign Exchange Primer for Everyone.
For more Information:
Forex Trading & Currency Investing Guide
Developing Effective Currency Strategy, Beat the Odds in Forex Trading, How to Achieve Over 100 Trades in a Row Without a Loss.
Here are ten rules that I think are important for trading forex. I divide the list into five Dos and five Don'ts.
Dos
1. When trying out a new trading strategy, always test it in a demo account, or with a small amount of money, before you commit more money to it.
2. Always keep a record of each of your trades, with details of: why you got in, how you got out and why it turned out the way it did.
3. Have a personalised trading plan and update it as you learn from the market.
4. If you are unsure of a trade, stay out. It is better to miss an opportunity than to have a loss.
5. When trading, keep up-to-date with both the fundamentals and technicals affecting the market. A trader in the dark is a trader in the red.
Don'ts
1. Don't trade with money you can't afford to lose! It will affect you emotionally, and you will most likely lose it to irrational trading.
2. Don't follow someone else's trading advice blindly. Always know why you argetting into a trade, and how you are going to get out of it.
3. Don't be concerned about being right. Just be concerned about being profitable.
4. Don't over-leverage. Chances are that your account will be decimated before you can recoup your losses and go into profit.
5. Don't revenge-trade the market. Vent your frustrations elsewhere after a loss.
Fundamental Rules for Forex Trading. Dos and Don'ts Guide for Currency Investing. A Foreign Exchange Primer for Everyone.
For more Information:
Forex Trading & Currency Investing Guide
Developing Effective Currency Strategy, Beat the Odds in Forex Trading, How to Achieve Over 100 Trades in a Row Without a Loss.
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ReplyDeletehttp://sigmaforextradings.jeeran.com/
Excellent article. I totally agree that one must start slowly, with small amounts and possibly on a demo account. I think one must set aside the money one will trade with and stick to it no matter whether you win or lose.
ReplyDeletei agree with you. you can use this rule in others investation you are in. im playing hyip and use golden rule:"Don't invest with money you can't afford to lose". 1st try to spend 10% money from your income/month
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