1. USE
STOPS. Use them, set them and most importantly
DO NOT CHANGE THEM, except for protecting your
position, e.g. locking your trade in square or
with profit. The use of trailing stops is advised
as not many traders have gone broke taking
profits. The art is not to set them too tight and
thus avoid being stopped out pre-maturely.
2. Trade with the Trend.
3. Make sure you have a trading plan / system and STICK
TO IT.
4. Try to remove ALL Emotion from your trades.
Trade Mechanically with little or no emotion, this
is easier said than done, but will be alot easier
with a system you Trust. Some traders place their
order and then either leave the room and go for a
walk, or put on some music and try to relax,
whatever you do, DO NOT sit and watch every pip
tick over. If your plan is correct and entered
into the system, give it time to work as there is
nothing to be gained at staring at a pc screen for
hours.
5. Do not mull over lost or missed opportunities,
another will be along shortly.
6. Think Capital Preservation as profits will
look after themselves.
7. Let your profits RUN. When you are in a winning
trade by all means use a trailing stop, just
do not set it too tight.
8. Try not to allow outside influences effect your
trading decision. Different opinions is what makes
a market, stick to your plan, the other person
maybe the one who is wrong.
9. If you happen to take a series of
consecutive losses, STOP trading and re-evaluate
your trading system or plan. DO NOT chase your
losses with the system you lost it with.
10.
DO NOT think FX trading will make you a
millionaire. It is a very tough and unforgiving
market where many a trader have lost more than
they have made. It most certainly does have the
ability to bring you incredible financial gains,
but it is a fact that only 10% of traders make it
to the level of Full Time Trader.
