1. Plan your trades and trade your plan.
It is absolutely necessary to have a plan so you know what you will do in such and such market situation. In fact the lack of planning ahead probably the biggest reason of failure of most traders.
2. Fear and hope are the two worst enemies for trader.
You need learn to control your emotions. Not to get rid of them. They are actually engines that keep you going. However engines that go out of control are very dangerous.
3. Always keep the records of the results for your trading.
If you want to repeat your successful trades over and over, if you want to avoid failure you went through, then you need to keep track of your decisions and actions. That’s why you need to record all your trading results.
4. Keep the positive attitude regardless of the results of your trading.
Result of a single trade mean very little. The long term result is what you are looking at. Therefore keeping the positive attitude no matter what the result of a current single trade will help you to move over it to the next more profitable one.
5. Think about Forex only when you are trading.
In order to succeed in Forex you need to learn to focus. Whatever you do focus on it. That means if you are not trading focus on whatever you do and forget about the market.
6. Stop-loss is the key to your success in trading. Always cut your losses.
The golden rule of traders states: never-ever trade without stop loss orders. If you do it’s a surest way to lose your
7. Always devote your time to study the market.
Set up aside certain amount of time to go through the price charts and economic news to better understand the price movement.
8. Always set your profit limit in each trade.
The same as with stop loss orders you need to know your profit target for each trade. I had so many potentially winning trades that turned into a losers just because I didn’t have a clear plan for taking profit.
9. Trust your own opinion before entering the market.
Facts are priceless. Opinions are worthless. Those who follow so called “gurus” in trading will never be able to make a significant profit. Take the full responsibility for your actions don’t hunt for opinions just because you are afraid to act upon your own opinion.
10. Keep your stop losses untouched during the trade.
It comes back to the rule number one. Once you have planned your potential risk and placed the stop loss don’t touch it until price reaches the profit target or stop loss. By moving the stop loss your are changing a significant parameter of your trading system. That is the way to turn a winning into a losing one.
Everyone knows that currency trading is a good opportunity to make significant amount of money. At the same time it is the best opportunity to lose even bigger amount of money. I hope the above tips will help you to preserve your trading capital and gradually to grow it.