Currency trading rules for a beginner.
Statistics show that no more than 15% of all participants in
this free financial market receive stable profits on retail Forex.
And yet some currency traders earn more than a million dollars a year. In this regard, the appropriate question is: “What do these “some” lucky people know and do so special?”
Nothing special. They just strictly follow the set of internal trading rules. Moreover, they observe it not from time to time, but constantly, that is, every minute they spend behind the display of their own trading system. Below are some rules from this code. It makes sense for novice traders to adhere to them, which will allow them to develop their own trading settings over time.
1. Use investment capital for currency speculation that you don’t mind losing.
It is not without reason that it is believed that one of the main conditions for success in retail Forex is a state of internal independence.
A trader should be influenced by a minimum of external factors during the trading process. First of all, he must be freed from the fear of losing invested funds. The foreign exchange market is not a place where you should invest “shy” money. 2. Be honest with yourself.
A professional who expects serious success must be objective about himself.
Only in this case can you reliably control your own emotions. A successful currency trader is extremely collected and unemotional. 3. Start small.
A novice currency trader, having tested his trading talents on a test account, should start working on real Forex with small trading volumes (no more than two Forex lots for the selected pair at a time).
You need to understand the mechanics of trading before you start working with serious money. 4. Don't overdo it.
For a beginner in currency trading, it makes sense to keep three times more funds in the trading account than is needed to open a specific position.
If the need arises, you should not hesitate to reduce your position size to comply with this rule. 5. Don't rely on quick profits.
Anyone who is taking their first steps in Forex should not base their trading on inflated expectations.
Excessive hope for constant market movement in the “right” direction is fraught with violations of basic trading rules. 6. Don't change your mind during the auction.
A competent trader determines his actions before entering the market and does not rebuild the original plan under the influence of random exchange rate fluctuations.
7. Take breaks from trading.
Daily trading “blurs the eye” and dulls the mind.
A timely break helps a trader look at both the current state of Forex and his own trading actions from a different angle and with a fresh look. 8. Don't follow the crowd.
A successful trader prefers independence. When, for example, most Forex participants rush to open long positions , he opens short ones.
The fact is that the crowd is most often wrong. 9. Block imposed opinions.
An experienced currency speculator does not succumb to the influence of others and does not change his own opinion under the pressure of someone else's authority.
He believes in his own strength and does not follow the lead of others. 10. Stop if you are not sure.
A novice trader should not trade constantly. It even makes sense for him not to hold a position throughout the entire trading day. We must remember that holding a position every day and all day is too expensive for a beginner. In addition, the rules of trading imply self-discipline, a sober mind, strong character and determination.