Trading Discussion Forex DO'S AND DON'T part 1

Trading is a business of statistics, NOT certainties​

Many experienced and beginner traders (more than you would imagine) don’t get the above. They are chasing the price in attempt to not miss a single pip of the move. Thus, not using confirmations for their entries. In other words, they are simply ignoring the rules of the strategy just because this one looks like a good setup, so I will jump in a bit earlier to gain a bit more. This is when price doesn’t do what you expect it to do.

This is a subject that concerns many traders. See (below) the most important 7 Do’s and Don’ts Any Forex Trader Should Know.

7 Forex Trading “Do’s”​

• A new forex trader who is all set to begin trading in the markets should be ready with a trading plan. The pillars of successful forex lie with sound knowledge and understanding of the entire Foreign Exchange Trade Lifecycle.
• In order to give a smooth start to their trade business, one should keep in mind the present monetary market scenario and study the dynamics and conduct basic research related to forex trade.
• A new trader should always begin his trade at a time when the market shows a progressively growing or down
• Prior to beginning a currency trade, he should always keep in mind the gain and loss ratio.
• Having a sound knowledge on the Fibonacci Analysis will help a trader to choose the best time of his entry or exit for starting a trade as it enables them to foresee the market fluctuations.
• A detailed technical and fundamental study of the current trading patterns by using charts, continuation patterns or trend reversal will be beneficial for a new forex trader.
• Use of intelligent trading robots will help them to achieve phenomenal success.

7 Forex Trading “Don’ts”​

1. Don’t ever revenge the market after a losing trade. Ever.​

This is not playing a video game where you can revenge when things don’t go as you wanted. There are no cheats. There is no restart. This is your money we are talking about.

You go nuts and angry? No problem – the market will calm you down by collecting as much as you are willing to lose. If you feel irritated step away. Go for a walk, go to the gym do a few push ups. DO NOT trade based on emotions.

If you are still not getting it let me make the picture more clearer for you. You are on the ring fighting Tyson. He throws a few punches in your face (loss). Not so strong though, Mike knows this is a friendly sparing, so you are still conscious (risk-management).

Now if you go mad and start screaming at him, and if you try to revenge for the punches from before WITHOUT following what your trainer told you to, namely to keep your guard up and don’t stop moving, what do you think would happen? You will be knocked out in a blink of an eye.

 

[Setho]

These are some very healthy tips that people should try to follow. I would also love to add that anybody who wants to be successful in forex should always have a validation point and an invalidation point for every trade that they want to enter. This means you have a reason for every trade and also you know exactly when to go out.

 

[Mary Frederick]

Brokers earn through spread.Low spread should be accompanied by low leverage to make your earning average. High spread means your broker is taking high commission from you for each trade opening. So, every trader should try to trade in low trading spread-flourished pairs. Eurotrader charges low trading spread in majority of their pairs.