7 Basic Forex Rules for Beginners, Simplify Your Forex Trading Education

trading is a serious undertaking, if you canmaster it, it can be very rewarding. 1. gameplan: what's yours? this doesn't needto be anything fancy, but a framework to stick to and allow you to evaluate what you've beendoing, right or wrong. 2. don't risk too much: you're unlikely tocall every trade right. the aim's to stay in the game, so be sure to keep enough backto allow trading through the tough times. scale up when profitable, and down when not. 3. trade with conviction: don't trade forthe sake of it. if worthwhile opportunities (on which to risk your money) can't be identified,you may be best looking elsewhere or even sitting on your hands.
4. take responsibility: be sure of what you'redoing. you only get one chance to lose all your capital. 5. run profits, not losses: if a profitabletrade wants to become more profitable, let it be. if a trade is going wrong, why watchit get worse. recovering losses is even harder work. 6. stay disciplined: don't let your heartrule your head. you are risking money. your money. the best traders keep their emotionsin check. 7. use protection: losing trades need to bekept under control, while profits should also be protected. use stop losses wherever youcan, allowing for adequate breathing space.
8. learn from your mistakes: keeping recordof both wins and losses can help avoid trip ups int he future. 9. keep your feet on ground: everybody hasgood streaks. don't let them go to your head. 10. back to basics: learning new things isgreat, but don't get carried away. remember the simple things. 11. markets go down as well as up: don't ruleout shorting. you can also profit from falling markets. 12. respect the trend: calling the bottomor top of the market is akin to catching a falling knife. it can be done but you oftenget hurt. going with the flow can be a lot
easier. be aware of the trend. 13. risk/reward: is what you're risking worththe potential reward? is it prudent to put â£500 on the block for the sake of gaininganother â£500? some talk of a looking for rewards 3 times greater than what's risked(link). 14. take stock: review your positions regularly.is your reason for placing/being in a trade still valid? 15. enjoy yourself!

Tweet