Forex Trading- Some Golden Rules
this is the trading rules
Once you begin trading it's important that you set up a few rules and guidelines for how you are going to trade. As without rules and guidelines you are trading without a goal in mind.
Over 90% from traders will end up going broke and not making money by the market, and the one of the key reasons is because they've no rules. Here are a few Rules to Get you started.
At the www.number1forex.blogspot.com we're big trusters in these rules and we be sure that we're continually educating our members on becoming better traders
1. You should never over-trade- do not trade for trades sake
2. Be sure that you never risk more than ten% of your trading capital in a single trade, protecting your capital is really important. There will be more trade opportunities
3. Ensure that you ne'er trade without protective stops and use trailing stops
4. Do not cancel a stop-loss after placing the trade- otherwise get out
5. Ne'er average down on an losing trade
6. When you get into a profit Ne'er let it run into a loss.
7. Ne'er buy or sell just for the price is low or high, as what is high and low
8. Never try to guess tops or bottoms- otherwise go to the casino and pick black or red
9. You should ne'er limit an profiting trade, instead move your stops to guarantee a profit- ideal trading is as soon as you get in a good profit at aleast ensure a break even
10. You should never close a position toget out of the market because you've lost patience or get in because you're anxious from waiting.
11. Please never hedge a losing position.
12. Ne'er change your position or close a trade without a good reason.
13. Ne'er follow a blind person* advice, everybody has trading sure things. Use systematically approach
14. Be sure that you ne'er enter a trade if you're unsure of the trend. Ne'er buck a trend. Remember the rule TREND IS YOUR FRIEND
15. Try to avoid scalping for small profits and taking large losses if you scalp you need tight stops
16. Avoid trading after long periods of failure- take a break, reasses and reset your rules
17. If you've a great run do not keep increasing your trade sizing
18. Avoid getting in wrong or getting in right and out wrong, making a double mistake.
19. All of the time identify strong support/resistance levels
20. All of the time lock in a profit at predetermined increments on profiting trades
21. EVERY trade must have stop losses
22. All of the time distribute your risk equally among a different markets.
23. Do not be a one trick pony, create money from both sides of the market
24. All of the time reduce trading after the first loss; never increase.
25. All of the time cut your losses short and let your profits run.
26. When in doubt, get out. Don't get in once in doubt.
27. Only trade active markets- illiquid markets will leave you thirsty
28. Only pyramid trades that have a strong trend and should be accomplished when the price has crossed support/resistance
29. Profits from a successful trade should be kept for future trade margins or put someplace else, spread the risk.
in the end we wish for all people success in there live
learn the forex from starting to profishional
