All traders, who joined Forex, seek to reach best results. However, to trade with profit, traders need to know and follow some Forex principles.
- Have your own trading strategy. Develop your system, which is based on some significant factors for trading on Forex.
- Control your emotions. The unstable emotional condition may disturb the process of making decisions. Learn how to control your emotions and wishes.
- Have your own historical data. Write down under which circumstances and on what factors your decisions to open/close orders are based and your comments on every situation. Regularly review the results of your work.
- Learn from your mistakes. Analysis and work on mistakes are among the most important components of a successful trade. It is important to be self-critical in the analysis of loss positions. Having dealt with loss positions, you can avoid repeating these mistakes.
- Do not trade without reason. Do not open a trading platform only because you have nothing else to do or you cannot fall asleep. Trade only when there are factors that justify such actions.
- Work and think by yourself. Help and hint from another person may be helpful, but not while trading on Forex. You can consider advice from experienced traders, but do not just follow it without even thinking. Progress will appear only when you make your own analysis, develop your own strategies and rely only on your decisions.
- Trade only when you are confident about it. It is better to wait for the appropriate moment to enter the market than open the order when you do not understand the situation. It is important to enter and leave the market at the right time. If you do not feel confident, you better not take the risk. A couple of lost pips cannot be compared with the large loss, which may be caused by rash action. Just open the order later: the market is not going anywhere.
- Limit your risk. Use for trading only the sum of money, the loss of which will not cause a shortage in the family budget.
- Know your limits. Be able to stop.
- Be careful with early success. Do not lose your head from happiness just because of a few hundred dollars profit (back to 2).
- Do not trade against the market. With the lack of experience, it is better not to take the risk. In the process of price movement in a particular direction, the market starts jumping up/down. To learn how to use short – term fluctuations, you must gain experience, thus minimising risks.
Open a live account with JustMarkets to find out how these principles can help you trade with profit.