1. It’s much better to be out of a trade wishing you were in than in a trade wishing you were out.
All too often, among beginner and experienced traders alike, there is the urge to over-trade. You may have enjoyed a winning streak, which boosts your confidence in your trading decision and before you know it, you are in multiple large positions and you are using up a large amount of your trade equity.
Or maybe you saw a trade setting up and you were so anxious to get into the trade that you jumped in before checking your criteria. Time and time again, this piece of advice will help you remember to think before you trade, check your criteria and even check the Economic Calendar to make sure there are no major events that could cause market spikes. And remember, this holds true too if you are trading too many positions at once.
2. Never Trade Without Setting Your Stop.
This should be a no-brainer for every Forex trader. Just don’t do it. You will regret it. Markets can spike hundreds of pips in a moment during volatile trading times, and if you don’t have your safety net of a Stop Loss set, you could risk huge losses. Never ever ever trade without a Stop Loss.*
3. When Your Trade Closes At Your Take Profit Target, Do The Forex Happy Dance.
If you are a Forex trader reading this and smiling, then you understand what I’m talking about. Be happy when your trade reaches your Take Profit Target. But stay humble and remember that no trader is invincible and that both winning and losing trades are to be expected. Keep looking for trading opportunities, but continue to use caution. Don’t be greedy and remember the rules above.
*All Forex signals generated from ForexSignal.com include Entry Point, Stop Loss and 1-2 Take Profit Targets.
Leave a Reply
You must be logged in to post a comment.