“You have to learn the rules of the
game. And then you have to play better than anyone else.”_ Albert Einstein
The 10 Golden Rules of Forex Trading _ by Admiral Markets
The truth about Forex is that it
can be an intense and stressful undertaking that requires a strong control over
your emotions. Forex is not a "get rich quick" scheme. Learning to
trade Forex takes patience – it will take you time before you master the
basics.
Those who lack discipline or make
decisions that are not carefully thought through will quickly find themselves in
a negative investment position.
Those who do not adhere to sound
investment principles, or who allow emotion to govern their thinking, quickly
find themselves losing a grip on their investments.
However, those who follow sound
investment principles will reap the benefits of one of the world's most liquid
and and influential markets. A 100% return on investment within a couple of
days wouldn't surprise anyone; in fact 1000% wouldn't surprise an experienced trader.
Needless to say, Forex has become
one of the most sought after and talked about investment opportunities.
As in any industry, Forex has its
own nature and golden rules. Learn Forex, the keys to success, and make your
decisions wisely.
This short book will introduce you
to the 10 golden rules of Forex trading that every person entering this exciting
market should follow in order to become successful.
Enjoy! GO!
1.
FOLLOW YOUR LEARNING CURVE, THERE ARE
NO SHORT CUTS HERE
The market is always changing
and it may be hard to understand and keep up with these changes unless you
invest in good Forex trading education.
“Be quick to learn and wise to know.”
_ George Burns, American
comedy actor
2.
AVOID
HUNTING FOR TOPS AND BOTTOMS IN TRADING, LEARN TO TRADE WITH THE TREND
There are many beginners who
make trades in any direction. While there is a possibility for making profits
both on the upside and downside, trading in the direction of the trend will
give you the best trades and chances for success.
“A trend is your friend.”
_Wallstreet
3.
TRY
TRADING ON A DEMO ACCOUNT BEFORE GOING LIVE IN A REAL MONEY ACCOUNT
Make a demo account and use it
to learn and understand Forex trading. While using a demo account you will be
able to test your trading strategies and mentally prepare yourself for a real
trade. However, keep in mind, that you should be realistic and treat your demo
funds as real money; otherwise, there is no way you can learn from demo trades.
“An ounce of practice is worth more than
tons of preaching”
_Mahatma
Gandhi, Indian philosopher
4.
STOP LOOKING FOR A “MAGIC FORMULA”!
While there are a lot of
companies who are earning money by selling software which aims to predict future
trends, the reality is that if this software really worked, these companies
would not be giving the secret away.
“I have no magic formula. The only way I
know to win is through hard work.”
_Don Shula, former American
football cornerback and coach
5.
PUT
YOUR EMOTIONS ASIDE WHILE YOU TRADE
Trading is a stressful work, and
there will be a lot of setbacks on your way to the peak. Emotional trading may
force you to open a trade too early and eventually lead to a loss due to a
wrong entry. Control your emotions by staying cool and calm, and focus on your long-term
goals.
“If you don't manage your emotions, then
your emotions will manage you.”
_Doc Childre, the founder of The Institute of HeartMathand Deborah Rozman, psychologist”
_Doc Childre, the founder of The Institute of HeartMathand Deborah Rozman, psychologist”
6.
DO
NOT TRADE IF YOU HAVE DOUBTS
Just because the Forex market is
online twenty-four hours a day does not mean that you have to trade all that
time. If you are doubtful, do not trade at all, but instead analyze the market
and use the knowledge you get in the future to make more profitable trades.
“When in doubt, don’t.”
_Benjamin Franklin,
one of the Founding Fathers of
the United States
7.
PREPARE
A TRADING PLAN BEFORE YOU ENTER ANY TRADE
Because trading is always full of emotions, you must have a
trading strategy, which includes a set of rules which you stick to, thus protecting
you from yourself.
“If you fail to plan, you plan
to fail.”
_Harvey
Mackay, businessman and columnist
8.
KEEP
IT SIMPLE
Avoid trading strategies which are too complex to understand
and which use a lot of different techniques. They can distort your judgment and
you will miss a lot of good trading opportunities.
“Simplicity is
the nature of great souls.”
_Papa Ramdas, Indian philosopher
9.
DON’T
RISK MORE THAN YOU CAN AFFORD TO LOSE
Due to leverage, Forex trading
has large potential rewards, but also large potential risk. As a novice, don’t
risk more than 1–2% of your margin account on any given trade. Over the long
run, this will give you a chance to make a profit while reducing the
probability of taking a loss.
“Never risk what you cannot afford to lose.”
_H. Jackson Brown, famous American author
10.
REVIEW ALL TRADES REGULARLY
Develop a habit of reviewing and
analyzing your good and trades. Then, you will have a much better sense of what
works best in your future trades.
“The first draft reveals the art, revision
reveals the artist.”
_Michael
Lee
OUR
LAST TIP
Regardless
of whether you are an experienced trader or a beginner, never forget the 10
Golden Rules. Remember and respect the rules of Forex and your opportunities
could be greater than you can imagine.
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