Forex rules
Posted by Santu amin in FOREX
- The following examine some rules to take into consideration when trading forex.
- Good Execution vs. Good Anticipation
- When trading it is important to keep in mind that the results of the last spefic trade made are not important. It is a waste of time to draw any conclusions over one or even a few specific trades. Anticipation skills can only be honed from experience and the overall results of many completed trades over a long period of time. When trading the only goal should be to execute trades with disciplined calculated efficiency. Losing money is usually comes as a result of poor execution rather than poor anticipation.
- Suppose you find yourself in a slump and start to experience loses. Supposing it is only temporary you continue trading and digging yourself deeper into a hole of lost money. Here are some tips to pull youself out.
- Do not let your profits run. Ensure this by cutting your loses as soon as possible.
- Do not "go on tilt" and overtrade. One extremely common mistake traders make when they are losing is trading too much or at larger sizes in order to gain back what they have lost.
- Upon losing a significant amount or all of your income, stop and search for answers about what went wrong.
- It may be helpful to conduct some research and obtain help. An seasoned expert would be able to teach you skills he has accumulated.
- In addition to giving you the skills to become more successful, a mentor could teach you how to handle bad times helping you develop your mental and emotional skills to help you with your trading.
- When comfortable it is possible to start back on your own. Seek out peers who are on even keel with you. They can be friends or co-workers but most importantly they will be there to learn from and to act as a support system with which you can talk to and compare notes with.
- While continuing to learn from mistakes it may be wise to seek out another mentor who can help you get accustomed to higher levels of trading which may require you to learn different skills that are valuable at higher more expensive levels of trading.
- Lastly it is important not to be attached to your trades.
