- Always trade with stops
- Prepare a detailed plan before each trade (idea, SL, reason to exit)
- Use daily max.loss.
- Write down all the trades
- Trade only well-known setups.
The last, but not the least point requires more attention. As far as I`ve spotted from my trading journal, the most of losing trades and almost all trades causing large loss were “wrong” from the very beginning: they were based not on the strategy rules, but on the idea “it might work like that”. That is why the best way to improve the perfromance is to avoid any trades except those stricktly according to the rules. Of course, sometimes you will see something that could become a new strategy, but you should make a research and test it first. In such cases, I use special backtesting software, like Forex Tester, to check new ideas and find out whether they are profitable or not. The next step is demo testing to find out if it would be comfortable for me to trade it, and only after doing this I will use it for real account trading. This procedure seems to be long, but it saves huge amount of money.