6 Golden Rules of Forex Trading (1)

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6 Golden Rules of Forex Trading
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Index

• Forex Market
• 6 Golden Rules of Forex Trading
• 1. Don't Expect to Make Profits From Day One
• 2. Have a Trading Plan
• 3. Minimize Losses By Setting A Stop-loss
• 4. Keep Your Emotions Aside
• 5. Always Do Analysis
• 6. Adapt Quickly

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Forex Market

• Over the past decade years, the Forex market has
  become the largest financial market in the world.
• The Forex market is also widely accessible, and
  plenty of resources are available.
• But many traders are often discouraged by not
  seeing profit from it.
• FX trading takes consistent discipline to yield
  success.

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6 Golden Rules of Forex Trading
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1. Don't Expect to Make Profits From Day One

• Most new traders face a common problem
• 1. Lose money
• 2. End up out of the game immediate than they
  would have anticipated.
• It's common for traders to double their capital
  within their first week of trading then lose it
  all soon after because of over-confident trading.

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• Trade small and build-up profits slowly.
• Some traders get succeed in the early stages of
  their career.
• It takes time and patience.

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2. Have a Trading Plan

• Having a trading plan is one of the golden rules
  of Forex trading.
• A trader with a plan is more likely to succeed
  than someone without it.
• What things you should have
• 1. Trading Strategy Outlined
• 2. Entry and Exit points explained
• 3. Stop-losses and Take-profits set.

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• Stick to the plan is the main element in your
  trading.
• A modifying plan should only happen when you have
  no positions opened.
• Do not modify your trading plan so that you can
  keep the losing position open for a long period.

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3. Minimize Losses By Setting A Stop-loss

• This technical advice should be fundamental to
  the trading plan.
• As previously discussed, many new traders lose
  capital and are unable to move forward.
• Setting up stop-loss means minimizing the losses
  and having capital available to trade for another
  day.

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• This is a general trading rule that every trader
  should stick to, and it's one of the top Forex
  trading rules.
• A stop-loss
• 1. Sets a limit at which your losing position
  will be stopped.
• 2. Deciding on how many pips you can afford to
  lose.

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4. Keep Your Emotions Aside

• Forex trading can be exciting and stressful both
  at the same time depending on profits or losses.
• As a result, controlling the emotions is one of
  the essential Forex rules to live by.
• There is no room for mistakes in the Forex market
  once you have lost money, there is no undoing it.

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• 1. Don't think you can focus only on trading
  during a session, and you should not be trading
• 2. If you are not in a good mood, take a break
  from trading and return when you are feeling
  good.
• Trading when you are too excited can be as
  detrimental.

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• We all know how easy it is to make decisions
  without thinking clearly.
• Trading is a manual activity, which needs to be
  done with the highest level of discipline.

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5. Always Do Analysis

• Your trading history is the source of your
  knowledge.
• Get the maximum benefit from this, by exploring
  what you have done in the past and analyzing how
  the market behaved at this time.
• Establish these review sessions on a daily or
  weekly basis and assess how you can improve your
  trading strategy.
• Learning from others is great but First, try to
  learn from your own mistakes and successes.

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• Don't focus only on the losing trades sometimes
  analyzing profitable trades can be even more
  beneficial.
• And if you have been making losing trades
• 1. If you learn from your mistakes
• 2. You have gained valuable knowledge and
  experience to adjust your strategy.

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6. Adapt Quickly

• Market behaviour tends to change.
• So it's vital to modify the trading strategy and
  adapt quickly, by consistently adding new items
  to it.
• The scope of the Forex market is huge, and so is
  the scope of the items you can learn about it.
• Don't think that if your current trading strategy
  works, it will work over a long period.

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• Successful Forex trading requires you to follow
  rules of currency trading including
• 1. Correct Implementation
• 2. Analyzing
• 3. Learning.
• Learning and adapting from trades, should be a
  repetitive process.
• If you stop learning and analyzing, then you stop
  growing as a trader.

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Thank You