1) Take care of your family
My most important rule. This sounds very easy, but sometimes, your trades would chain you to the computer. Try to spend time with your family. This keeps your head free. Trading with an full time job and family is very heavy and burden some. If you have kids too, and try to trade every evening, don’t forget your kids or your partner. A happy family and a good feeling is more motivating and important, than anything else. I also had the problem in my past. Now my partner and my daughter know what I’m doing and they understand it and assist me. The social aspects are very important but most people don’t think about itbefore or just forget them as I did in my beginning.
Don’t forget: No money loves you more and gives you more love than your family. If you loose your family, you loose much more than just money!
2) NEVER let a Winner turn into a Looser
This is also a very important rule you should try to follow.The holy rule. The Currency Market can move very fast, so a winning trade may turn into an loosing trade in seconds.
So try to take the maximum gain of the trade or just work with trailing stops. Nothing is more frustrating in FX Trading if a glorious trade becomes an horror trade. For Example if you have an profitable 60 point trade, that turns into an minus of 30 points within seconds.
Try to close each trade before market is closed on Friday.
3) Find your Trade setup, concentrate on one strategy and one rule for TP/SL level
You should watch the market and only look for one strategy.
This means, that you find an strategy, learn the strategy and than you work with this strategy.In the beginning of your trading expirience you should only watch one currency pair, to stay on the top of the things. In my beginning I tried to watch 10 or more different pairs with different strategies, so I could make more profit, I thought...
That was a bad mistake. Only take one pair, learn your strategy and than you may watch more, if you are stable on this strategy. More pairs and you maybe loose the overview.
Also set your SL/TP level after the same rules every trade you make. Look for support and resistance levels and let your trades run. Try to get an reward-to-risk ratio of
minimum 2:1
4) Never make an trade without setting SL/TP
A very bad mistake if you set an trade and don’t use SL/TP Levels. If you are in front of your computer/laptop/tablet it’s easy to look at the trade you’ve set. But if you have troubles with your internet connection, battery of the laptop oder something else and you didn’t set those levels, you may have an problem. If the trade runs into profit, everything is ok, but if it goes in the wrong direction, you‘ll loose some of your money. And this technical dependence is a very bad feature of our modern society.
5) A winning streak vs. fiasco
It sounds absurd, but if you are on an winning streak you are happy and highly motivated to trade. You‘ll take one trade after the other and each one is a winner. But suddenly it happens and you have set an trade, which turns into a looser. You don’t worry about that, but inside, it’s the beginning of an tragedy. Deep inside, you are a little bit unsure about this trade and try to make the next trade better, but this also goes the wrong direction. Every negative trade make you feel more bad. So it’s the ideal moment to stop trading for this day. Next day start again and try to solve the problems with your trades from the past day.
6) Set your daily SL/TP Level
Sounds stupid, but this only means, that you should make an target for your trading day. So try to set your personal positive and negative pip target“ for each day. If you’ve reached one of this targets, you stop trading for this day. This also mean, that you can set your Profit/Loss
Level not only in Pips. Since I trade this rule, my trading is getting
better and better. But you really have to follow it.
7) Find your trading hours
Try to find your ideal trading hours, when the market is quiet or heavy moving. This depends on your trading style/strategy. Watch at the session you prefer and trade if you really have the time to. It’s not good for your trading results if you’ll have to go away every 5 minutes. This make you angry, perhaps aggressive and you are not able to concentrate.
8) Start on an demo account
Before you start trading with real money, find your ideal Broker and test your strategy at his platform. Not every broker hast he same rules. Take the option of an demo account to test your broker and your setup. If you feel bad, try another provider. If you are stable on your strategy and you think you are ready for the real forex market, start trading with a small deposit and small lot sizes. An unwritten rule says, that most people loose their first deposit. Trading with YOUR REAL MONEY is always a little bit different, than on an demo account. Work after your strategy, which you’ve successfully tested on the demo account and if you feel good at your trades, make your next deposit. Don’t hustle, if you want to be an forex trader.
9) Use the available technologies
Work with different monitors if you have them. Watch news websites. Use your tablet, smartphone or TV. Use every technical possibility to inform you about the market. Every information you can get, is good for you and your trades. Technology is made to make your life easier and if you find a good one, just use it. Also try to analyse your trades every weekend, when the market is closed. Think about your trades, what has been good / not so good. Try to note this things and you won’t do it again.
10) Sometime it is good if you take a benefit of your trading activity
So you’ve earned a small gain. Use this gain, to buy something, you really want.For example if you have an partner and kids, make holidays with them sponsered with your profits. Your mates would be very happy and try to motivate you more and more. This would help you at your trading carreer and clear your mind.
At his point i'd like to thank my family for supporting me. They are my realy Motivator and Golden Rule!
please let me know your opinion about my article in form of comments.
