P. Eliades Investments & Services Ltd

Golden Rules of Forex Trading

1. Always set up a trading plan with entry and exit strategies. By opening a position, stick to your trading plan and do not let emotions or other factors change your mind.
2. Do not open positions using 100% of your account. This is called great risk.
3. Do not invest again in your losing positions. Keep your winning positions longer and close your losing positions earlier.
4. Use Stop Loss in order to ‘lock’ the loses (or profits). Doing this, the risk is controlled.
5. The concept is to trade with the trend. No one can catch the highest or the lowest price of a movement.
6. Never go against the market! And do not forget, the market is always right.
7. It is said that successful traders usually BUY on bad news and SELL on good news.
8. It is impossible to close every trade in profit. Just try to keep positive balance between your winning and losing trades.
9. If you want/need to make a short-term speculation, always keep an eye on the long-term trend. We advise you to trade only when the short-term trend is the same as the long-term trend.
10. Try to improve your trading. You can always do that, by learning more techniques/tactics and by reviewing your trades. Find out your mistakes and avoid them in the future.

 

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