Ten Golden Rules for Forex Traders

SunbirdChief

Trader
May 8, 2011
17
2
12
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.
 

Ripped

Trader
May 17, 2011
9
0
12
These are great rules! I am going to be sharing this list with my interns tomorrow at our weekly meeting.
 

1only

Trader
Jul 1, 2011
18
0
22
www.1onlyforex.com
No rules will work if you are not 100% disciplined.
 

SamForexTrader

Active Trader
Sep 24, 2012
30
0
27
UK
www.ifcmarkets.com
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.

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.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
23
32
Canada
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.
 

Resolve

Master Trader
Dec 7, 2013
698
8
54
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.
If we will make a habit to follow the rules of trading we can become more successful traders.
 

e_abrams

Active Trader
Dec 11, 2020
451
30
39
39
A lot of traders don't really follow any rules and thus end up losing their money. That has been my experience, at least.
 

e_abrams

Active Trader
Dec 11, 2020
451
30
39
39
I agree. Trading with other people's money is one of the biggest mistakes a trader can make, unless they are a professional trader.
 

Lelia Erdman

Banned
Apr 14, 2022
4
1
4
30
USA
To make a profit from Forex trading one of the ten golden rules for Forex traders, you must be fully prepared, which means a thorough understanding of all Forex fundamentals as well as sufficient experience on a demo account.
 

BritneyHolden

Newbie
Mar 28, 2022
20
2
3
25
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.
These are real rules for becoming a successful trader. All the pointers are necessary for making a successful trade. Forex do not accept any leniency in trading, and small mistakes can cause losses to occur.
 

Catastrophe

Banned
Apr 12, 2022
2
0
1
23
Never neglect using risk management strategy in a trade. No matter how sure a trader is about his/her trades, he should still consider using a strict risk management strategy.