Forex Trading Tips
1. Do not overtrade
- Trade within your means
- Use 1/3 of your total margin only
2. Always use protective stops to limit losses
- Don't trade impulsively
- Have predetermined risk as well as profit
- Go in with a plan
- Don't move stops higher or lower and say "It'll come back."
3. Diversify your portfolio
- Try to avoid "Loading up" in any one commodity or product
4. Keep emotions in tact
- Don't make trading decisions based on "Fear and Greed", as hard as this may be
- Make decisions away from the market - "Don't be a screen watcher"
- Don't let ego get in the way
5. Trade in the direction of the immediate trend
- Don't try to pick bottoms or tops
6. Don't add to losing positions - get out!
- Don't Average "Down" or "Up"
7. Keep it simple, more complicated is not always better
- Trade within your understanding of the markets
8. Employ approximately a 3 t1 reward to risk ratio
- Don't ever risk $2 to make $1
9. Don’t go against the markets, unless you have enough patience and financial resilience to stick to a long term plan.
- Beginner is never advised to trade against trends
- Join the trends so that your mind can relax
10. Understand that forex is about probabilities.
- Forex is all about risk analysis and probability
- No single method or style that will generate profits all the time
11. Be humble and patient. Do not fight the markets.
- Recognize your failures, and try to accommodate them
- Attitude will surely be ruinous on your career eventually
12. Share your experiences. Follow your own judgment.
- Discuss your opinion on the markets with others
- Consider the opinions of others, but make your own choices
13. Study money management.
- Cut your losses short, and let profits ride
- Should keep the bible of money management as the centerpiece of your trading library
14. Always be a student and keep learning
15. Above all, be disciplined
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