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Tuesday, June 08, 2021

Some Rules To Improve Your Trading

Some Rules To Improve Your Trading


Guild lines For Forex Traders

In the following chart, listed some rules that can help investors improve their investment decisions. These guidelines come from experience and not necessarily based on new theories.

1) Know Yourself (scalping, day trading, swinging- what is your personality?)
2) Put Your Ego Aside (FX has a 6 trillion dollar per day rollover in money- it does not care about your ego, so leave it out of trading).
3) Hoping and Praying Do Not Guarantee Success. ( 50% of trading is from neck up other 50% of trading is preparation and planning)
4) Learn To Live With Losses (No system, plan, edge or strategy has a 100% win rate)- use risk engagement always when trading).
5) Never Double Losses( if trade is going wrong direction, do not keep moving stop loss further and further- just expect loss and move on)
6) Know Your Pain Level ( How large is your account? Using 1% or 5% per trade? What is a pip worth of movement? stop loss and target)
7) Diversify The Risk ( You could only trade one FX pair always, or maybe only around 100 ADRs (which I do)- around 8 to 10 per week)
8) Making Money By Trading Is Hard Labor/Work (You can slowly grow account, compounding, lot sizes, etc... but no Lambos without the hard work).
9) Intuition versus Execution of a trading concept/strategy (Demo versus Real trading is 100% different. Why? you have real money).
10) The importance of a trading plan (Keep your trading plan and edge simple- put it all on one 4 x 4 note card)- Simple works in FX trading)
11) Feel comfortable with your trading strategy (back test any strategy at-least 100 times on TV or a FX simulator program)
12) Nothing is more important than discipline (In life discipline and patience will get you further then wanting everything today or yesterday).
13) Value your trading concept (You need to be confident your strategy works even after a string of losses)

Remember the following four items before entering any new trades: Right pair, Right price, Right Session & Right Time. Also, win big, win small, lose small but never ever lose BIG.

from TradingView Ideas
via gqrds

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