Forex tips

Google+ Pinterest LinkedIn Tumblr +

These are some random tips I have learnt in my experience as a trader:

-Do not start the day expecting to trade. You trade only if your signals say to do it.
-Do not trade under emotional thoughts. If you loss a trade. Take a break. Rest for a while, and then you continue ANALYZING, not necessarily trading.
-Do not trade thinking of past losses. One trade is independent to other trades, and you should cut your trade when the signals tell you so, or when you reach your objective.
-Cut your losses quickly. Let the profit run.
-Never ever trade because you feel it.
-There is always another trade. If you are analyzing, and suddenly the price breaks a support or resistance, and starts dropping or rising fast, that`s it. You may have lost the opportunity. Wait until you have another opportunity. Remember that the one that looses is the latest to enter into a trend.
-If you close a trade and the trend continues in the same direction. That`s it. You have reached your objective, do not enter again.
-Trade near support and resistance levels. Your objective is to find situations that are highly probabilistic to win, and that the risk is the least.
-Try to be alone without interruptions while you trade. You have to be deeply focused while trading.
-Rest. Being all day long in front of a computer it is not healthy and you will get tired. If you are not mentally rest, do not trade.
-Take up sport. It helps to be focused. Go on vacations from time to time.
-There is not a holy grail. 
-Test your system before trading live. Find a wise money management and a wise psychology strategy.
-Track your results. See the mistakes. Learn from them. Do not go through the same mistakes over and over again.
-Being a good trader doesn`t mean winning all trades. It means being constant with profits.
-Read. Learn. Study.
-Try not to trade against the trend.
-If you loose many trades sequently, rest. Study the mistakes.
-Trust your strategy. Try not to follow advices.
-Each system is for each trader. Even if someone gives a complete trading system, just few people will have the same results. But most of the traders will have different results. A same trading system doesn`t work equally in different traders.
-The indicators used for confirmation should not be directly related to one another.
Two indicators from the same category do not increase confirmation. Avoid colinearity. (From Bollinger Bands Rules)
-The actual parameters needed for any given market/task may be different in each indicator.
-Luck is not your partner while trading. Avoid luck. Avoid anything related to gambling. 
-Ask the market about the market. The markets has all the answers to the questions.
-The problem is not in the charts. It is in the ones that read charts.
-Forget the news, remember the chart. The chart already knows the news is coming.
-Trade one pair or two. Each pair moves in a different way. Each chart has its peculiarities. Get involved with the pair you choose to trade. You will naturally become attuned to the rhythm of your chosen instruments, and will come to have a 6th sense as to when you should and shouldn’t trade.
-PREPARE FOR THE DAY. You need to have done your homework, and decided where you will be looking to get in and out of the market. Plan objectives and place stop losses before entering in a trade.
-Follow your plan. Once you have decided to follow a certain strategy, stick to it.
-DON’T BE GREEDY. Do NOT try to squeeze the last tenth of a point out of each day trade. You can easily afford to be slightly late on your entry and slightly early on your exit.
-Most day traders who fail do so NOT because they can’t create winning trades, but because they fail to kill their losers soon enough.
-DON’T OVERTRADE. Similar to rule number 6, don’t ever trade unless you are ABSOLUTELY sure. Never day trade because you are bored, or need some excitement. Buy a Sony Playstation instead.

READ YOUR SIGNALS. TRADE SMART. STAY FOCUSED.
Read the market.

Share.

About Author

Leave A Reply