Ten Golden Rules for Forex Traders

Discussion in 'General Forex Discussion' started by SunbirdChief, May 8, 2011.

  1. SunbirdChief

    SunbirdChief Trader

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    1. Learn the market. There are many ways to learn Forex trading technique. A great learning method is to explore the internet for great substantial material and Forex forums. There are many great websites and tools across the internet that teach Forex Trading. Additionally, many Forex companies offer learning courses; enrolling in a session is a great way to learn from the pros.

    2. Start trading with a Demo Account! Most trade platforms provide the option to create a Demo Account as a way for new clients to practice trade. Demo Accounts are a great to get to know your trading platform and build your own trading strategy before you trade. This will also provide the highest value discipline.

    3. Choose a reliable broker firm with low spreads and low costs. Before you deposit money into an account, remember, the money you are trading with should be money you can afford to lose.

    4. Start by depositing a small amount. Initially only deposit somewhere between $500 to $1000. Before adding to your account, ensure everything is okay and working properly, considering your broker and your strategy.

    5. Always deal with Stop Loss. Before entering a transaction, know how much you're willing to risk in order to gain. Additionally your trade should be no more than 3%-5% from your portfolio.

    6. Do not trade a transaction with an unclear direction. Since it is a dangerous market, always remember a good technical analysis wins not by emotion.

    7. Leverage is a very powerful tool for tradesman. The forex market allows you to leverage up to 1:500. Learn to leverage wisely. If not used correctly, it can be a guaranteed way to lose money very quickly.

    8. Analyze the Market. Use tools to analyze the market; this will insure future transactions. Try to predict the market trend identitfying support and resistance points. Market analysis is necessary for successful trading.

    9. Learn to accept the Forex Market is uncertain. As noted above, trade is unpredictable; it is not guaranteed predictions will be correct throughout the trade. This uncertainty however is also the key that leads to significant gains in forex trading. The quicker you understand to live with the uncertainty, the more successful you can be in trades.

    10. Restrict your daily loss. Never reach a point of completely emptying your account; this will disable your account as you will not have enough margin to open trades. Therefore, restrict your daily loss. If you reach a point of significant loss, it is advisable to turn off your computer and return tomorrow; remember: each day is a new day with new opportunities to gain money.

    Best of luck -The "Sunbirdfx" team.
     
  2. linkhouse

    linkhouse Trader

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    Im new to forex, and thank you for the information.
     
  3. pipmaker

    pipmaker Trader

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    so true, and be disciplined to stick to your pattern and have a daily target :)
     
  4. kochtgr

    kochtgr Trader

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    All these rules are great but I think the most important is to have a good money management system and do not allow your emotions affect your trading decisions!
     
  5. labadora

    labadora Trader

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    so true, and be disciplined to stick to your pattern and have a daily target
     
  6. Ripped

    Ripped Trader

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    These are great rules! I am going to be sharing this list with my interns tomorrow at our weekly meeting.
     
  7. 1only

    1only Trader

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    No rules will work if you are not 100% disciplined.
     
  8. SunbirdChief

    SunbirdChief Trader

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    Well said!!
     
  9. SamForexTrader

    SamForexTrader Active Trader

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    Yes, really nice rules. However if one thinks that following them they will always be a success, they are mistaken. They will only help you to minimize your losses. I especially liked Rule 9. Many people think that there is a method to predict the market movement exactly. But they should realize there is no method and they better accept it. The sooner they accept it the more successful they will be.
     
  10. hayseed

    hayseed Master Trader

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    good thoughts

    //-----

    hey sunbird....... those are some pretty good thoughts in easy to grasp words...... thanks.....h
     
  11. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Golden rules for a retail trader maybe, pro-traders would laugh at a couple of the points you made. I would call them the bronze rules of traders if anything at all.
     

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