Recently I have just started practicing on an FXCM demo account.
I work with a firm that trades physical banknotes for banks, so trading global markets is nothing new to me.
Before I go live, I wanted to reach out and see if some of you can provide suggestions on setting some personal trading rules.
I compare the FX market to sports betting. Speculation and research pay off. I play high stakes, but arm my decisions with research, but anything can happen.
If you can provide me some of the rules and techniques you have put into place, those will help me cultivate my own strategy.
My Own and Collected Rules, Just check it out… It is a long lists, Frequently to be gone through.
I shall not panic. I appreciate both profit/Loss of the trade outcome.
I don’t have any “FEAR OF LOSS”. If my previous position was in loss and I get a good set up now, I shall not hesitate to enter that trade.
I shall not be overconfident. If I see for sure, market is moving volatile to a predetermined direction,
even at that time, I shall not use more than 10:1 Leverage of my account.
Regaining the lost balance is freaking HARD. If I loss 50% of my initial balance, I have to make 100% to come to BREAK EVEN only. BE AWARE.
Do Not Revenge Trade.
The bigger the size of your position is, the more probable it is that the price will go against you.
If something unexpected takes place in the market and you panic, all I can get is loss.
I may or may not have signal(s) to trade today. In that case, I will trade following day to look for good
set up.
My trade may yield profit or loss, but as long as I follow my trading plan, I’m on the right track.
I have backtested and forwardtested my system to know that in the long run it will give me pips. So every pip loss in the short run only means I’m closer to pip gain.
I will evaluate my trades after every trade, but I will evaluate my equity every month.
In the tunnel of FOREX Trading, I may not see any light at the end of it, but I will keep going because I know it’s there, and I’ll reached it in … months or years.
Plan your trades. Trade your plan.
Keep records of your trading results.
Keep a positive attitude, no matter how much you lose.
Don’t take the market home.
Successful traders have a well-scheduled planned time for studying the markets and prepare his trade well in advance.
Never cancel a stop loss order after you have placed it!
Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.
The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.
Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.
The key to successful trading is knowing yourself and your stress point.
The difference between winners and losers isn’t so much native ability as it is discipline exercised in avoiding mistakes.
Accept failure as a step towards victory.
Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don’t let ego and greed inhibit clear thinking and hard work.
The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.
It’s much easier to put on a trade than to take it off.
Beware of large positions that can control your emotions. Don’t be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.
Never add to a losing position.
You must believe in yourself and your judgment if you expect to make a living at this game.
In a narrow market there is no sense in trying to anticipate what the next big movement is going to be
– up or down.
A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss – that is what does the damage to the pocket book and to the soul.
When the ship starts to sink, don’t pray – jump!
If any position goes in 50% profit target, move your SL to Break Even. But don’t take profit early.