Have you ever wondered how it happens that some traders make money on Forex trading from the very beginning and do not have any problems?
Other traders, in turn, have been trading on the Forex market for many years and cannot make ends meet, and their accounts are always in the red.
I used to be such a trader until I created a list of what I have to do to become a successful trader.
Here is my list:
- Build up your own system – test it first on a demo account and then open mini or nano account and trade live one cent per pip for at least six months.
- Don’t use too many indicators in your system – it will deceit a clear picture of the market you trade – apply KISS technique – Keep It Simple Stupid.
- Adapt your system to your personality; if you are ADHD don’t trade on weekly charts and conversely, if you are a philosophical or reflective nature don’t scalp the markets on M1.
- Always open a position when all conditions of your system for entry are met; the best entry is to place a pending order, if possible.
- NEVER EVER open position based on feeling – impulsive behaviour killed too many accounts.
- Always use stop loss for every position. Know your stop loss before you open the trade, NEVER EVER AFTER OPENING THE TRADE.
- NEVER EVER MOVE YOUR STOP LOSS when the position is open.
- Know your rules for taking profit before you open the position.
- When the price approach your take profit DO NOT MOVE TAKE PROFIT FURTHER. Too many profitable positions turned into losing positions because of hope. Remember: HOPE DIES THE LAST.
- DO NOT PYRAMID YOUR POSITION WHEN IN LOSS.
- Be consistent – whatever happens always trade your system for at least six months – DO NOT MODIFY IT – don’t get tempted to add up other indies or change settings. CONSISTENCE IS A KEY.
- ALWAYS PRESERVE YOUR CAPITAL – opportunities are endless, your capital is limited – if in doubt – stay away.
- LOOSING IS A PART OF THE GAME – don’t take your losses too personal.
- Go with the trend – DON’T TRY TO PICK TOPS AND BOTTOMS – it’s impossible.
When I started implementing these points, my trading changed beyond recognition. I stopped pulling the trigger, my positions were always well thought out; I knew where and when I should get into the market, when I should close my positions and of course, I had always stop loss placed.
At the moment I am a soulless machine that performs transactions automatically, and trading turned out to be very boring. There is no thrill, no adrenaline, only ruthless execution of the prepared plan. It was worth making such a list.
