Rules of trading
Never lose money
There are no excuse to lose money. Trade only when you have odds in your favor. Never risk too much. Trade only the best setups.
K.I.S.S.: Keep it stupid simple
Do not complicate your trading with too many indicators. I trade clean charts with only support and resistance lines. To become good trader you have to develop a feel to the market, learn to read the price. You can’t do if you can’t pure price action. Candles will tell the price is going. Just listen carefully.
Focus on mastery
Everyone comes to trading to make money, but only few do. First and foremost focus on learning how to trade, mastering the markets and most importantly mastering yourself. Enjoy the process. Only when making 10 cents will be as exciting as 1000000$ you will reach mastery. Your main focus should be to never lose money and to win every time.
Always write a trading journal
Trading is business and must be treated as such. This is why you are responsible for every trade you take. Writing a trading journal can make a difference between making money and losing.
With trading journal you can analyze what you are thinking when you are trading, analyze where you make mistakes, fix them and do more of what works. You will see what setups makes you money and trade more of these and eliminate setups that are not profitable.
When in doubt bail out
You don’t have to trade all the time. Trade only when you know what you are doing. If you have doubts stay away. Trading more won’t make you money. Trading smarter will.
Meditate
Almost every successful person who I know meditates. Meditations is extremely helpful in trading. You are constantly looking at the charts and this can stress you out. Meditation helps you focus, reduce stress and prevent from making emotional decisions. Meditate every day for 20 minutes or whenever you feel unfocused. You will begin to see huge difference within few week of meditation.
Find a good broker
Having good broker can save you lots of time and effort. Also money. If you have broker that charge 2 pips every time you take a trade and you take 100 trades with 1 lot you pay that broker 2000$. However if you find a broker with 1 pip spreads you pay only 1000$. You can see that 2 pips might not look like much but over time that adds up. Also you want a broker that doesn’t lag when you trade and has good customer support.
Not blowing your account in the first week: risk management secrets
Risk management is the key to making money in forex. Even if you have a trading system that wins 90% of the time (this one can do that), risk too much and you are out of the game.
With proper risk management you will limit your losses to the minimum white making as much money as possible when you win.
Many people come to forex thinking that it is get rich quick scheme. These people are the 96% of people who lose their money in the first six months.
Your primary goal should be mastering the markets and most importantly mastering yourself. Once that’s done, money will come in a ways you have never expected. For some people it takes few months, for some a decade, but the average is 3 year till they can trade forex and make money consistently.
I don’t think you want to spend 3 year learning to trade. So what is the secret to do it faster? Not blowing your account!
You see, some people say to start trading with demo account for a 6 months, then open real account. This is complete rubbish.
Demo Account Importance
Of course if this is the first time you heard about forex and don’t know anything about how it works, how to take a trade, set a stop loss and close a trade, then do it on demo account. You can learn this within few days.
Later it’s just a complete waste of time and I tell you why. Mastering forex is not about going long when price goes above 21 moving average and going short when goes below. It’s not about following certain rules or mastering every candlestick pattern. If it would be that easy forex robots would make money and they don’t. You have to develop a feel for the markets and robot will never have that.
Forex is mostly about mastering yourself. When you trade demo, you can lose, you can win and nobody cares. When you trade with real money everything changes because your emotions comes into play. This is when over risking begins, revenge trading, and all kinds of shit. This is when people who make money on their demos for six months straight lose their real accounts.
I suggest to open a real account right away. Of course don’t put all your family savings yet, or get a loan (Never do that). Just deposit minimum amount possible and trade the smallest lots possible. This way you will begin to master yourself as well as the markets.
Remember that your primary goal is mastering markets and yourself. Only when trading 0.01 lot will be as compelling as 10 lots you will become a master. Of course you will be able to trade 10 lots, but first get a proof of consistently making money with 0.01 lot.
Whenever you will feel overwhelmed by the amounts you are risking reduce the risk. No emotion should cloud your judgment.
