ForexTradingSecrets.com has researched and compiled a set of 22 rules which are used by experience and successful traders. We are confident that these Golden Rules on FOREX Trading will help you to increase your chances of winning in a very volatile and liquid money market. And, hopefully, they will also prevent you from making the unrecoverable LOSSES.
Use these 22 rules to guide you in trading foreign currencies.
- Use a system and don't deviate from it.
- Use money management at all times.
- Establish your trading plan before the markets open.
- Detail your plan for each trade.
- Develop a trading plan for each potential situation you may face.
- Establish entry and exit points and understand risk reward ratios.
- Accept small losses as part of the game if you want to win.
- Stand aside from a position, knowing you have taken a position.
- Stay the course so you are around for the big moves.
- Don't blame the market for your losses. You are the reason for your losses.
- Do not concentrate on break-even levels when you are losing.
- Remember that break-even levels do not impact on the future success of a position.
- Don't liquidate a winner to keep a loser.
- Develop and maintain an exit plan. Follow this plan with rigid discipline.
- Remember that greed kills.
- Never add to a losing position. A losing position means you were wrong.
- Sustain your patience. Big movements take time to develop.
- Remind yourself there is nothing new in the markets.
- Don't predetermine your profits.
- Avoid techniques you don't understand.
- Don't be overly curious about the rationale behind a move. The key to wealth in trading is simplicity.
- Bulls and bears make money, but pigs get slaughtered.
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