Rules for a successful Forex trader

Rules for a successful Forex trader

Rules for a successful Forex trader

Here we have presented to Your attention the Golden rules of the Forex trader, which will help to strengthen the trading discipline with their systematic repetition. Before opening a trade, do not be lazy and read these trading rules. It won't take long to repeat them (read them). Maybe up to 10 minutes. This is a kind of prayer before trading, which will always guide you to the right path and will not allow the trader to go astray.
Golden rules of the trader

So, we will tell you about the basic rules that every Forex trader who dreams of achieving success in trading should follow.
Rule #1. Discipline

If you approach trading with discipline, the market will bring more profit than losses. The formula applies here: discipline = profit growth.

Discipline in trading should be observed every day. You don't need to lie to yourself that you are disciplined when trading. Be honest with yourself. If the plan is to make 5 transactions, then make only five, no more and no less. Discipline is broken when 4 or 6 transactions are made instead of five.

The market always pays disciplined traders.
Rule #2. When trading poorly, we reduce the lot size

Self-respecting traders adhere to this rule. If there is already a drawdown of the Deposit, then the main task of each trader is to reduce losses by lowering the lot rate in the following transactions. Why increase already unprofitable trades with additional open orders? You can save money by reducing the volume of the following transactions.

By the way, it also happens that applying the basic rules of a trader, two consecutive trades are still unprofitable. In such cases, the lot of subsequent orders should be reduced to a minimum. Provided that the two subsequent orders have made a profit, it means that the Forex lot size returns to normal norms.
Rule #3. Profitable trades should not turn into unprofitable ones

Forex trader rules

Do you agree that it is quite difficult not to break the established rules? This often happens: you look at a deal that is in the black, you are distracted by something else and you see your deal is no longer in the positive zone, but in the negative. The greed factor should be taken into account when trading on the Forex market. The trader's trading rules say this. You need to be content with little, and not expect millions from the market.

It is important to make a profit, not a loss. Let this profit be insignificant, but profit. After all, you can open a lot of deals. The main thing to understand is that any of the transactions opened during the trading day should not have a negative impact on the result of the day.
Rule # 4. Large loss should not be more than a big win

Do not be too lazy to take notes on some media all your transactions. For example, you can see that one of the trades showed the most profit, let it be 70 points. You can't allow a loss of more than 70 points. In other words, the loss should always be less than the profit.
Rule #5. Trading should be based on a single trading strategy

Before each trader there should be a list of certain rules (conditions) for opening trades. If there is no such list, you need to make it and keep it always in sight.

If a trading strategy is time-tested, but on some day it failed, you do not need to throw it in the long box and look for something new. Losing days happen for everyone, regardless of whether the players follow the trading rules or not. Even if Your vehicle shows a profit in more than half of all transactions, apply it further.
Rule #6. You don't have to be like someone else, just be yourself

There are people who open deals with a volume of several hundred lots. Moreover, such a lot does not affect the psychological state in any way. But there are those for whom 10-20 lots exerts an unprecedented pressure on the psyche. At the slightest tick from the comfort zone, these people close their orders at a loss. In no case should such aggressive trading be conducted. If you are comfortable with the volume of 1 lot, then let everything remain as it is. The basic rules of trading imply this. After all, not everyone can trade professionally.
Rule #7. There should be enough money in the account to trade the next day

The trader should always have money in the trading account. You can't bring yourself to collapse. There is nothing worse when the trader sees the perfect opportunity to enter, but the money is already gone. Therefore, if the total losses amounted to about one-third of the trading Deposit for one trading day, it means that something is going wrong and the basic rules of the trader were violated. You need to close the trading terminal and do other things. Trading will be better tomorrow than it is today.
Rule #8. to increase the lot, you need to earn more money

rules of trading on the foreign exchange market

There are many such traders who think that if you top up your account with $100 thousand, you can open 5-10 deals at once for 10 lots each. Nothing like that. If trading does not go well with a Deposit of $1 thousand and a lot of 0.1, then where is the guarantee that the same will not happen with an account of $100 thousand? You need to learn how to trade profitably with minimal amounts and gradually increase them.
Rule #9. Learn how to exit unprofitable trades

It's okay if the deal is unprofitable. The main thing is for the trader to realize this in time, so that it is closed on time and thereby reduce losses. But it also happens that the trader is sure that over time the price will change direction and profit will be achieved.
Rule #10. The first losing order is the best order

While the trade is open and the trader feels that there is a high probability of catching a stop loss, it is better to close it without waiting for a stop order. The second trade is most likely to close with a take profit.
Rule #11. No need to hope or pray

There are cases when traders pray to God that their trade is closed on a profit, and not on a stop loss. Or they have high hopes that the price must necessarily reach a certain level.
Rule #12. News – the last century

Follow the financial news and Analytics of would-be forecasters-a lost cause. No one knows for sure how the market will react to this or that news. Analysts are ordinary people. They give forecasts of where the price might go with a 50% to 50% probability. Not great. With such success, you can trade on a coin.
Conclusion

If you learn to respect the market and follow the basic Golden rules of Forex trading, then more often there will be profit than loss. Work on your discipline, improve your proven trading strategy, and the market will definitely reward you with money.

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