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."

 

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