13 MOST IMPORTANT TRADER RULES THAT YOU CAN HANG ON THE WALL
The 13 most important rules of a currency trader, which are clear to everyone, but which we often forget. Memorize or print to re-read sometimes.
The work of a trader seems simple and easy only to an uninitiated person. The trader is constantly in the strict framework of rules and restrictions. These are the laws of technical and fundamental analysis, the rules of money management, etc. But there is a framework into which a competent trader drives himself, of his own free will, because going beyond them turns to trade into a casino, where the result will always be the same – a complete loss of the deposit.
HERE ARE THE MOST IMPORTANT RULES FOR A TRADER
- If you are in doubt whether to open a deal or not, then there can only be one solution – do not open.
- Better to miss the entrance to a profitable trade than lose your money. Do not rush to jump into the “leaving train”, be patient, waiting for a new opportunity to enter the deal.
- Need to know the measure. In forex trading, quantity never goes into quality. Do not trade 25 hours a day – your success will not get better from this.
- There are always risks in the foreign exchange market, even in the most seemingly 100% profitable transactions. Entering the market, you should clearly know what loss an open position can bring you.
- Trading on the foreign exchange market is available around the clock, however, there are time periods when risks increase – these are the intersections of trading sessions and the middle of each session.
- A losing trade is a non-viable trade. Forget about locks, the Martingale method, and other “magic” ways to turn a losing trade into a profitable one — just close the deal and accept the loss.
- Trading is not entertainment. You can not analyze the market situation and plan transactions while watching a feature film, chatting on Facebook and like photos of friends on Instagram. Profitable trading requires maximum concentration.
- Very often, traders hopefully continue to hold a losing trade, but are in a hurry to close a profitable trade, even if the price has not reached take profit. Do not stop your profits from growing.
- There is no loss of trade in the foreign exchange market – and this must be understood and accepted. But the loss must be controlled, does not become a cause of the psychological trap.
- Do not rush to start working with a broker because of the offered promotions and bonuses. Approach the choice of the company wisely.
- There are no super-secret and mega-profitable trading indicators, strategies, and robots. Feel free to combine methods and approaches – this makes trading flexible.
- Do not count on manual transaction support – without fail, place stop loss and take profit orders.
- Emotions are the enemy of the trader. Outside of trading, you can be impulsive or, conversely, phlegmatic. When launching a trading terminal, leave all emotions “overboard”.
As you can see, there is nothing new; every trader who tries to trade even on a demo knows them. However, during the bustle of the market, we forget and distract from the main thing. Therefore, these rules can be printed out and hung in front of you, so that in a moment you will think about the deal, not go after the fantasy of profit, but remain completely in the market, controlling the process.