1) Indicators/Trading system
i) Every indicator/trading system has its rules, Please go through the rules thoroughly and make sure that they are properly observed and well understood.
ii) While on the charts ensure compliance as regards to points of entry.
iii) Do not “jump the gun” ie wait patiently and dont imagine or create a trade where there is none.
iv) Ensure that the exit point is pre-determined prior to entry,either in terms of profit or in terms of loss.
v) Don’t take losses too personal,it should be seen as one of the business expenses.
2) Ensure that you manage your risk/money accordingly
i) Adjust your volume accordingly.
ii) Instaforex trading platform is a micro platform and it is suitable for both beginners with small capital and experienced traders with enhanced capital
iii) Do not increase your volume in excess of your capital,manage your money/risk accordingly.remember that “little drops of water makes a mighty ocean”.
iv) Do not “revenge trade”.in the event of loss,please do not increase your volume trying to recoup your loss. note that you cannot make an informed decision with an unstable mind.
vi) Ensure that you keep/maintain a trading plan/journal which should include but not limited to either your TP levels,SL levels,entry points etc. You could also apply trailing stops.
3)Ensure that trades are taken after observing resistance or support level
i) If you have missed the point or were not there ,move to another currency pair.
ii) Do not place a trade because you are in the trading room.
iii) Ensure that every condition/parameters are right for you to take a trade.
iv) Do not yield to external interference/influence.
v) Do not yield/trade under pressure.
vi) Remember that “tomorrow is another day”.
4) Always maintain a business mindset and not a gambling mindset
i) Gambling mindset would make you to negate the rules.
ii) Forex is investment and investment all over the world are guided by rules
iii) After a string of losses,please give yourself a break.
(a) it doesn’t mean that your trading system or indicators are wrong
(b) it doesn’t mean that your decision to buy or sell was wrong
(c) the market might be in one of its random movements either due to news or erratic movement
iv) The same trading system or indicator could commutatively be profitable over a period of time,either monthly or bi-monthly.
5) Do not bitterly regret over past losses or trades that you didn’t take
i) Profitable opportunities are always there.
ii) Remember that Forex will always outlive you.
iii) Inexperienced traders are fond of speaking in the past,instead of focusing on the present.
iv) Remember to always recollect the rules, observe it and apply it accordingly.
NB: Always note that InstaForex offers traders the best trading platform in the market right now.
By Paul Odibeli