10 keys to become a better fx trader

Hello to all :)

Here are few steps we can keep in mind while trainding forex market. These steps seems good for the newbies.

1. Education: I would talk about this because before we trade fx , we need first key as Education. Here we learn what fx market is all about. This involves series of studies from some basic educational resources about fx.

2. Planning: Try to plan your trade, what time is better to enter trade and exit your trade?

3. Risk management: Trading fx involves substanitial risk to capital , non argueably 100% of your starting capital. However to trade fx , ask yourself,what is your money management rule? It is wise to trade with minimum margin requirement 5-10% with a complete obedience to your stop loss point. The easiest killer and savior for each trade is your margin requirement for each open position. Remeber the higher the the margin , the higher the profit and the higher the loss. learn to minimize your risk .

4. Try to trade the news: in a cycle of clock, series of economic news are released that influences the market movement . Learning how to trade positive and negatives news events increases your chance to profit in market.

5. Analyse your profits : While on profits what do you need to do , hmm , better take your profit faster before the market turns against you or to luck some profits while your trade is on positive side . Remember the adage, if you fail to plan ,you plan to fail. Ignoring this rule calls in the next point: Greediness.

6. Avoid greediness in trading : Uhh , this have happened to me many times when I was a newbie . Sometimes my trade pofits 150USD in a positon and I keep anticipating further rise in profits instead of taking my profit or lucking atleast 65-70% of it. Then the enemy greediness intrudes my trade and the trade goes back against my profit and at last I must regreat. So I learnt a lesson at this point and avoid such bad mistakes in trading.

7. Trade with your profit : While you have invested your initial capital, a shrewd trader would quickly withdraw all his starting capital and tade with the profits . This limits risking your hard earned money in fx.

8. Emotion/Pysychological trading: A trader must control his or her emotion and try to understand that the market is always right and your analysis could be right or wrong . So when failure takes in, try to plan next phase. Try not to fight the market trend .

9. Take your profits.

10. Enjoy your living :)


Thanks! I like no. 8. It hit home to me...
 
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