Get up! Attention! Fall in!
Those who served in the army remember the rules of the charter: getting up at 5 am every single day and hitting the sack at 9 pm.
Those who followed the rules became tough men. The most dedicated were awarded and appointed commanders . And those who regularly broke the rules were punished: they were forced to work more and rest less.
Trading is like serving in the military: it is easy to get blacklisted by the commander. But getting out of it will take days of hard work.
You don’t need a lot to get started in the Forex market. If you can check off these conditions, you’re all set:
- You have no debts;
- You have a job and can afford to invest 10-20% of your salary;
- You don’t quit your regular job until you see decent trading results.
To become the Commander of your Deposit, follow these 3 key rules. You don’t want to lag behind other successful traders, right?
1. Discipline above all
Keeping a trading journal – #1 rule for survival in the Forex market. Do you think that keeping a log is not a big deal? Then can you tell me this:
- Which currency pair brings you the most profit? Trading which instrument you are more likely to open a losing trade?
- What candlestick patterns work best for you?
- Which system has the best risk/reward ratio.
You have to keep a record of your transactions in Excel or Google Sheets, or simply in your notebook. To be honest, the paper is not the best option: later, to get your trading stats, you will need to do the calculations by hand, and it’s very time-consuming.
This is how the trading journal looks like
The coolest traders are usually savvy in one or two systems. Even Bruce Lee defeated rivals with just one powerful, well-honed blow: why wasting your effort on dozens of trading system? Master one or two of them, and it’ll definitely be enough.
Trading statistics will show:
- how much interest per month your system yields
- what income to expect from your trading system
- what the maximum drawdown is and how much time you will need to recover from it.
Make it a rule to keep track of your results and calculate your statistics every week. Select a day off, set a reminder and analyze all your trades and indicators.
And one more secret. The metrics in your journal is the source of your motivation. Growth, as well as falling indicators, will motivate and prompt you to trade better.
2. Trade with the trend. Always.
Eurodollar at its peak in 2020 and keeps rising
You can love candlesticks, you can be crazy about supply/demand zones, idolize moving averages. But you cannot trade without a trend.
You need to build a strategy based on human psychology. Otherwise, the market will punish you like a commander punishes disobedient soldiers.
Trend, or the general price direction on the chart, is a key psychological pattern of the Forex market:
We’ve highlighted the most potentially profitable entry points on the chart. All of these entries will generate profit because they take into account the downtrend.
All trades are based on a super-simple principle: we enter with a downward trend, against those traders who are betting up.
We believe that the enemies of the system will be punished. The result is elegant and efficient:
Trade with the trend. There is no easier way to make money from Forex
The trend trading is complemented by candlesticks, and we get Price Action – no bs technical analysis. The example above is a classic price action entry.
And here’s what happens to naughty traders:
For example, there were worthy candles for entering a trade. But the trend movement is much stronger than the candles. Remember this.
3. Breadth first, depth second
You find out about the Forex market, learn how to use a couple of indicators on the web and start trading. You experiment with the first indicator, then you try the second, the third, the count goes on.
Then you try to trade all of them and get confused … A typical mistake: you don’t know the fighter’s arsenal yet, but you are already rushing into battle. A smarter approach would be to:
- Learn the entire arsenal
- Choose one or two, three tricks at most
- And then apply them in the Forex battlefield
Some traders think that Forex trading is all about indicators, candlesticks and zones. As if there are no other tools:
- Technical analysis patterns: wedges, flags, triangles, pennants
- Formations: Triple Bottoms, Broadening Top, Cup and Handle
- Strategies to trade the news
- Volume analysis
- Price action, which clears the chart from all of the above. For true minimalists!
- Touch trading
And the list goes on. The main thing for you to understand is that first, you need to try a bit of everything on a demo account, and only then switch to live trading. Believe me, it’s a much safer way to get started.
Do what they say and get your reward
In the army, devotee soldiers are awarded, they get:
- a shout-out
- extra money and valuable gifts
- promoted in rank
Do you want to become a Commander of your Deposit? Follow these three simple rules:
- Keep a trading journal
- Explore the trading arsenal and choose suitable “tricks” for yourself
- Trade with the trend
Nothing complicated, right? Especially, when there’s such a cool prize is at stake:
So join the ranks of the loyal market followers: open an account, deposit $100 and open your first trade. 3, 2, 1 … Go!