Forex analysis

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  • 09:59:12 am on November 14, 2008 | # |
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    45. Risk Control
    A)Never risk more than 3-4 percent of your capital on any trade
    B)Predetermine your exit point before you get into a trade
    c)If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading

    46. Don’t trade scared money. No one ever made any money trading when they had to do it to pay the mortgage at the end of the month. Having a requirement to make X dollars per month or you will be financially in trouble is the best way I know to completely mess up all trading discipline, rules, objectives, and leads quickly to disaster. Trading is about taking a reasonable risk in order to achieve a good reward. The markets and how and when they give up their profits is not under your control. Do not trade if you need the money to pay bills. Do not trade if your business and personal expenses are not covered by another income stream or cash reserve. This will only lead to additional unmanageable stress and be very detrimental to your trading performance.

    47. Know why you are in the markets. To relieve boredom? To hit it big? When you can honestly answer this question, you may be on your way to successful forex trading
    48. Never meet a margin call; don’t throw good money after bad.

    49. Close out losing positions before the winning ones,

    50. Except for very short term trading, make decisions away from the market, preferably when the markets are closed.

    51. Work from the long term to the short term.

    52. Use intraday charts to fine-tune entry and exit.

    53. Master interday trading before trying intraday trading.

    54. Don’t trade the time frame. Trade the pattern. Reversal patterns, hesitation patterns and breakout patterns appear often. Learn to look for the pattern in any time frame.

    55. Try to ignore conventional wisdom; don’t take anything said in the financial media too seriously.

    56. Always do your homework and stay current on global events. You never know what’s going to set off a particular currency on any given day.

    57. Learn to be comfortable being in the minority. If you are right on the market, most people will disagree with you. (90% losers,10% winners).

    58. Technical analysis is a skill that improves with experience and study. Always be a student and keep learning.

    59. Beware of all tips and inside information. Wait for the market’s action to tell you if the information you’ve obtained is accurate, then take a position with the developing trend.

     

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