Ten Golden Rules for Forex Traders

jimcarter

Trader
Nov 10, 2017
31
2
24
38
USA
At the best of times, forex markets can be volatile and uncertain, and amateur traders can easily end up chasing their losses. However, it is precise because of this volatility that you have the potential for large profits. These ten forex trading rules may give you the best chance of success. However, keep in mind that trading entails a high level of risk to your capital, and profit is not guaranteed.

The 10 golden rules of forex trading
  • Avoid any forex trading software that guarantees profits.
  • Use a practice trading account at all times.
  • Invest in good forex education.
  • You can learn to trade forex successfully.
  • When managing your forex capital, exercise extreme caution.
  • Make good use of your per-trade investment.
  • Apply common sense.
  • At all times, use risk-aversion strategies.
  • Take extra care not to overextend your leverage.
 

Lewis Capaldi

Newbie
Jan 23, 2022
24
1
4
45
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.
I don’t know, why new traders always try to avoid the demo trading in their early stage; basically Demo is the best way to gather top class trading experience without any fee! I completely agree with your opinion on the demo trading part! All of the successful traders were so much serious on their demo during their learning sessions! As a result, now they are enjoying!
 

e_abrams

Active Trader
Dec 11, 2020
451
30
39
39
Some people avoid it because they are inexperienced and falsely believe they would just start trading and make money. I have seen it happen. They quickly learn otherwise.
 

Resolve

Master Trader
Dec 7, 2013
750
8
54
Some people avoid it because they are inexperienced and falsely believe they would just start trading and make money. I have seen it happen. They quickly learn otherwise.
We need more trading skills so that the income we are getting will also get increased.
 

Fried_Rice

Trader
Aug 30, 2021
224
21
24
48
At the best of times, forex markets can be volatile and uncertain, and amateur traders can easily end up chasing their losses. However, it is precise because of this volatility that you have the potential for large profits. These ten forex trading rules may give you the best chance of success. However, keep in mind that trading entails a high level of risk to your capital, and profit is not guaranteed.

The 10 golden rules of forex trading
  • Avoid any forex trading software that guarantees profits.
  • Use a practice trading account at all times.
  • Invest in good forex education.
  • You can learn to trade forex successfully.
  • When managing your forex capital, exercise extreme caution.
  • Make good use of your per-trade investment.
  • Apply common sense.
  • At all times, use risk-aversion strategies.
  • Take extra care not to overextend your leverage.
Nice list but I disagree with 2 and 3. Demo account is only good to get the gist and forex education is widely available for free
 

Zack Williams

Banned
Apr 26, 2022
3
0
0
23
The 9th point is really important and in most cases, it becomes the difference between profits and losses. It’s not guaranteed that your trading plan will always work in the market. This makes it really important for you to be prepared for all the results that may come up because of the market uncertainty.
 

Resolve

Master Trader
Dec 7, 2013
750
8
54
The 9th point is really important and in most cases, it becomes the difference between profits and losses. It’s not guaranteed that your trading plan will always work in the market. This makes it really important for you to be prepared for all the results that may come up because of the market uncertainty.
We must first of all understand the basic details about using our trading systems.
 

Secretum

Banned
May 5, 2022
2
0
1
28
As long as you are keeping your risks manageable, you will always be in the category of profitable traders. Losses are inevitable but if they don’t stop you from making future trades, you are doing well.
 

Goggles

Banned
May 25, 2022
6
0
1
22
As long as you are keeping your risks manageable, you will always be in the category of profitable traders. Losses are inevitable but if they don’t stop you from making future trades, you are doing well.
It is important for traders to learn to protect their capital first and then make profits.