Forex Trading Strategies
6. Forex trading runs in cycles. There are good day and bad days, there are good weeks and bad weeks, there are good months
and bad months. Don’t let a bad day, week, or month put you down. Learn not to measure results in the very short term. Many traders
give up after having three or four bad days. Don’t! Know that its part of the business. Hang in there, manage your money well, be persistent
and I promise you it will pay off!
7. KEEP IT SIMPLE! Don't think that the more indicators and patterns you use the more profitable you will be. My forex trading
strategies are simple BUT original. I learned through time that the true gems in the market originate from simplicity. This is an important
concept, don’t dismiss it.
8. Never ever add to a losing position. I think this is one of the biggest "diseases" traders have. A stop loss is like a red light,
it's not a suggestion. It tells you to get out of the market not to add more money to the trade. It simply makes me angry to see people
adding money to a losing position. It has no justification except one. HOPE! They don’t say "gee, I was wrong and should have exited
in my stop loss level", they say "I am correct about the direction of the market, it's just that my stop loss was placed to close to my entry.
If I hang in there and add more money the trade will surely go my way and I will not only make for the loss but I will make much more since
now I am adding to my position at a much better price!".
9. Be patient with your profit targets. I know it is very tempting to grab the profits in a winning position before the profit objective
is reached. There is a fear the market will turn around and the trade will become a loser. Be disciplined. There is a reason your profit objective
is where it is. You did your homework before entering the trade and the profit objective you decided on justifies the trade in terms of risk/reward.
Frequently take profits before the profit objectives are reached will destroy your whole risk/reward ratio and will finally be the difference between
success and failure.
10. 95% of traders are not disciplined and that is why they do not succeed. They always know better than their system, they
always know better then what the market is telling them. Be amongst the 5% disciplined traders and I guarantee you will be light years
ahead of the crowd.
11. Think, analyze, and create BEFORE the trade. During the trade only follow what you though, analyzed and created before the trade.
Before you enter the trade you are cool and balanced, you are thinking logically. During the trade you are under fire since money is involved.
You are under pressure. What makes you think that you can make better decisions under intense fire then when you are calm and balanced?
You can't. That is why you planned the trade before hand. Follow your plan!
14 Rules for Successful Forex
Trading - Part 3 >>
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