The information provided is believed to be accurate at the date the information is produced. Traders come from a variety of backgrounds, but typically share a core set of characteristics that enable them read more. On March 9 Wall Street racked up seven years of bull market activity, as measured by gains in Traders who buy and sell stocks on the same day are called day traders.

This type of trader looks Spread betting and CFDs are very similar, so how should investors choose between the two? Quite often you will The somewhat esoteric term 'black swan' simply refers to an event that has not been expected by the market A dear child has many names. The strategy below is called 'lost momentum' in my vocabulary, but it no You remember the film Trading Places?

The key scene takes place in the commodities trading pit for orange juice Being a successful trader goes a lot deeper than predicting price movements. Here are six key things you should Currency pairs in the foreign exchange market are typically divided into three types: major, minor and exotic. Major currency Did you know that Bruce Lee's moves were too fast to be captured on the regular 24 frames-per-second film, Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. This firm has no connection to Intertrader whatsoever. For more information please see the relevant notes from our regulators, the GFSC and the FCA. Intertrader's website, services and products are intended for use by or distribution to persons in any country or jurisdiction where such use or distribution is permitted under applicable law or regulation.

Intertrader is a trading name of Alvar Financial Services Limited. Alvar Financial Services Limited is authorised and regulated by the Gibraltar Financial Services Commission, ref FSCMIF, and is subject to limited regulation with the Financial Conduct Authority in the United Kingdom, ref Registered address: Europort, Gibraltar, GX11 1AA.

The first spoke is content. Content consists of all the external and internal market information that traders utilize to make their trading decisions. All traders must purchase value-added content that provides utility in making their trading decisions. The most important type of content is internal market information IMI. IMI simply is time and price information as disseminated by the exchanges. After all, we all make our trading decisions in the present tense based on time and price.

Without instantaneous time and price information, we would be trading in the dark. The second spoke is mechanics. You must master mechanics before you can enjoy any success as a trader. As simple keystroke error can result in a loss of thousands of dollars. A trader can ruin his entire day with an inadvertent trade entry error. Once you have mastered order execution, though, it is like riding a bike. The process of entering and exiting trades becomes seamless and mindless.

Fast and efficient trade execution, especially if you are trading with a scalping methodology, will enable you to hit a bid or take an offer before your competitors do. Remember, the fastest survive. The third and most important spoke in the Wheel of Success is discipline. You must attain discipline if you ever hope to achieve any level of trading success.

Trading discipline is practiced percent of the time, every trade, every day. Review the following 25 Rules of Trading Discipline. You must condition yourself to behave with discipline over and over again. Many of my traders and clients read through the rules every day believe it or not before the trading session begins. Think of the exercise as praying reminding you how to conduct yourself throughout the trading session. Trading with discipline will put more money in your pocket and take less money out.

Being disciplined is of the utmost importance, but its not a sometimes thing, like claiming you quit a bad habit, such as smoking. If you claim to quit smoking but you sneak a cigarette every once in a while, then you clearly have not quit smoking. It is the one undisciplined trade that will really hurt your overall performance for the day. Discipline must be practiced on every trade.

When I state that the market will reward you, typically it is in recognizing less of a loss on a losing trade than if you were stubborn and held on too long to a bad trade. All good traders follow this rule. Why continue to lose on five lots contracts per trade when you could save yourself a lot of money by lowering your trade size down to a one lot on your next trade?

If I have two losing trades in a row, I always lower my trade size down to a one lot. If my next two trades are profitable, then I move my trade size back up to my original lot size. Its like a batter in baseball who has struck out his last two times at bat. The next time up he will choke up on the bat, shorten his swing and try to make contact. Trading is the same: lower your trade size, try to make a tick or two or even scratch the trade and then raise your trade size after two consecutive winning trades.

We have all violated this rule. However, it should be our goal to try harder not to violate it in the future. What we are really talking about here is the greed factor. The market has rewarded you by moving in the direction of your position, however, you are not satisfied with a small winner.

Thus you hold onto the trade in the hopes of a larger gain, only to watch the market turn and move against you. Of course, inevitably you now hesitate and the trade further deteriorates into a substantial loss.

There is no need to be greedy. Its only one trade. Opportunity exists in the marketplace all of the time. Remember: No one trade should make or break your performance for the day. Keep trade log for all your trades throughout the session. If you do allow a loss to exceed your biggest gain then, effectively, what you have when you net out the biggest winner and biggest loss is a net loss on the two trades. Not good. I require my students to actually write down the specific market prerequisites setups that must take place in order for them to make a trade.

You must have a game plan. If your methodology works more than one-half of the trading sessions, then stick with it. In all of my years as a trader I never traded more than a 50 lot on any individual trade. Sure, I would have liked to be able to trade like colleagues in the pit who were regularly trading or lots per trade. The best way to win at a sport, game, or in life, is to have a strategy. There is no right or wrong way to trade Forex, but you still have to know what your set objectives and rules are when you trade.

These rules will specify when you as a trader will enter and exit a trade, money management, and good risk management for each trade as well. One great way to test a Forex strategy is backtesting. Backtesting allows you to try out your trading strategy using historical data to see if it works.

This is readily available today because of advances in technology. This allows you to test without risk. Once a Forex trading strategy that you like is found or developed and backtesting shows good results, you can be much more confident in applying that strategy in real trading.

Once you find your personal trading strategy stick to it. Do enough research on the instruments and technical aspects, do backtesting on your strategy to know it works.

The whole point of your strategy is to develop trading discipline. This comes with consistency and routine. As with everything else, to be good at something you need to practice. The more knowledge and experience you have, the more likely you will be consistently successful at Forex trading. As you grow as a trader, your strategies may change and grow with you. Until that time, stick to your strategy. Many of these rules flow together and overlap. Setting aside your emotions is a rule that is in every other rule.

To trade effectively you cannot make rash decisions based on your emotions. This is why you have a strategy and you need to follow that with discipline.

This is easier said than done because emotions are the enemy of a Forex trader. If you are upset, or feeling down, do not trade. If you are brimming with confidence and bravado, feeling like you cannot lose. Do not trade. Both of these states can cause great losses.

Flowing from point 3 of setting aside your emotions, do not treat Forex trading as a game. Forex is not gambling, and it is not a fun game. It can be fun, but if you want to be profitable do not treat it as a game.

Forex trading is your business and needs to be treated as such. If it is a hobby or game, you will not have the motivation to commit to continually educate yourself to be better. As a Forex trader , you are a business owner and your main goal is to maximise your business's profits and limit your losses! A stop-loss is a predetermined amount of risk that a Forex trader is willing to accept with each trade.

This is crucial because no matter your trading strategy, there will always be risk. Setting a stop-loss will ensure that you do not lose more than the limit you defined. In an ideal world, all Forex trades would end up in profit, but that is unrealistic. Always set a protective stop-loss to ensure that losses and risks are limited. As mentioned in a few of the above points, you should practice Forex trading before you actually start trading for real.

This is exactly what a demo trading account is for. Once you are adequately skilled, competent, and confident in the demo trading environment, you can start trading using a live account. Even when you start trading live, you may want to keep your demo account to try out new strategies.

So, although a demo account is an incredible tool and will help you a lot in learning to trade, at some point you need to make the move to do real trades, as scary as that might be.

Give yourself a timeframe in which to move from the demo account to live trades. A good benchmark would be 1 month, but no more than 3 months. Learn as much as you can and diligently study so you have a good foundation of the Forex market , but eventually you need to trade live, or you will never see any profit.

In almost anything that you can mention, the more knowledgeable the better you will be at anything. Knowledge is power after all. Make sure that your Forex broker has a strong educational program that will help you learn and grow as a trader. Not just at the beginning but as you keep growing perpetually in your trading career. Make sure that they give access to tutorials, webinars, expert financial analysis, and commentaries.

It is also extremely helpful to have an economic calendar , graphs and charts, and even Forex trading signals available. A strong education will pay dividends later as you trade.

Not to be cheesy but the best investment is an investment in yourself with the right education on Forex trading and the market. Forex trading today is all about technology. The access that we have, the way that trades can be executed automatically, and all the data and analysis are possible because of tech. The speed, power data processing ability of computers now is incredible and can be used to your advantage. Charting platforms to view and analyse the market, smartphone apps to monitor and make trades, backtesting, copy trading platforms , the list is endless and growing.

Make sure that you are always keeping up with and utilising the features of Forex trading platforms to make your trades better, faster and smarter.

You work hard for your money. Protect it. You do not want to save for Forex trading capital to lose it quickly and have to start over. Keep in mind, however, that protecting your capital does not mean never losing a trade. That is unrealistic. All traders have losing trades. Protecting your capital means that you are not taking unnecessary risks by following this and other rules listed here.

If you are going to be a good and successful Forex trader , you need to resign yourself to the fact that you will be a Forex student of the market for the rest of your trading career. World politics, news events, economic trends can all affect the market and the more you understand what is happening in the world and how it could affect the Forex market the better you will trade. Learning from the past and current markets will prepare you to recognise currency patterns and indicators about the market now and what may happen in the future.

Couple this with understanding research, charts, patterns, strategies, and reports and you will have a full and comprehensive view about how the financial and Forex markets work. The money you trade Forex with cannot be money that you absolutely need, now or in the future. This cannot be money that you need for your bond for example.

Never have the mindset that you are just borrowing money temporarily from a needed account that you will pay back. This is not only unwise because you can lose the money, but also because you will place yourself under a great deal of pressure, knowing you need this money back, and this can lead to reckless and emotional Forex trading.

It is bad enough to lose money but if it is money you need and should never had risked, it makes it even worse. There are two reasons to stop trading.

A problematic Forex trading plan or a problematic Forex trader. Things happen. With all the planning, backtesting and education you can have under your belt, it is still possible for a Forex trading plan to go south. Markets may have changed unexpectedly, or volatility may have lessened or increased dramatically. Whatever the reason, if the Forex trading plan simply is not performing as expected then stop trading. Do not get emotionally invested and insist that your Forex trading plan needs to work.

Live again to trade another day. Stop trading and re-evaluate the trading strategy and make changes or start over. A Forex trader is problematic to himself and his trading plan if he is somehow unable or unwilling to follow the trading plan, he is committed to.

Pressure, stress, poor habits, emotional trading, wrong frames of mind or just a lack of discipline and educational foundation can all be detrimental to your trades. If you cannot handle trading for that day, then stop and take a break. You can return to trade when you are ready and in the right business-like state of mind.

Always keep the end result and the big picture in mind. Do not get rattled by every single thing that happens in the short term. And do not be phased by a losing trade. It is just part of Forex trading. It is the amount of winning trades that you make step by step that will make a difference in the end. Once you accept that both wins and losses are a part of Forex trading, then hopefully emotions will have less of an effect on trading performance.

This is why setting realistic goals, having a Forex trading plan, not overtrading, and not being emotional as well as the other rules can help you keep your focus on the end goal of being a successful trader and seeing reasonable returns. Being profitable at Forex trading is more about consistent effort over time then anything else.

A Forex trader does not have to make a lot of trades to be successful, they just need to make the correct trades. This is why a Forex trading strategy is crucial and being able to recognise the right conditions in order to make a trade. When you are trading on a live account, you must have a strategy with specific, pre-established conditions for the entry and exit of trades.

Forex markets can be volatile and uncertain at the best of times, and inexperienced traders can easily end up chasing their losses. Yet it is precisely this volatility that gives you the potential for major profits. These 10 rules of forex trading may give you the best chance of landing on the winning side. Please remember, however, that trading carries a high level of risk to your capital and profit is not guaranteed. There is no forex trading software that can assure you of winning trades.

If there was, why would anyone sell it? A demo trading account can help you improve your trading skills with virtual trades on real markets. Of course you should always remember that your performance on a demo account may not be replicated a live trading account. Whenever real money is changing hands, the risk of loss is ever-present. Therefore you should base your trades on considered tactics and strategies. To avoid being led by your emotions stay focused on technical and fundamental factors and market news at all times.

Knowledge is power — we all know that. Ensure that your forex provider gives you access to tutorials, webinars, expert financial analysis and commentary, an economic calendar, graphs and charts, and even forex trading signals. All of these tools will work to improve your trading performance.

The ultimate goal is to generate greater profits than losses over time, even if you have less winning trades than losing trades. No forex trading system guarantees success see rule 1 but some may be used as reliable guides. If you learn from the experience of successful forex strategists, your likelihood of success is far greater. But remember, when judging the results of any system or any expert, that past performance is not a reliable indicator of future results.

The forex markets can change on a dime, as currency markets are often characterised by high volatility. If you have generated winning trades, be sure to manage your profits. Use stop-loss and limit orders, close out positions, and hedge your exposure to the best of your ability. Be sure that you are in control of your capital at all times. This is one of the most crucial aspects of forex trading.

Doing so puts you at significant risk of loss. If you spread your investments over a wide number of trades, you limit your overall losses by not putting all your proverbial eggs into one basket! We are going through a period now where USD is a strong global currency. With a Fed rate hike looming, you may want to back USD against emerging-market currencies. Use your common sense when judging the effect of current and upcoming events. Risk protection varies from one trader to the next.

However, you can limit your risk by managing your capital wisely, limiting the amount you trade per position, using forex trading signals, trading with greater knowledge, hedging your trades, and using specific technical strategies.

Your key risk protection tool is always your Stop Loss order. Remember, however, that stops are not guaranteed and you can lose more than your initial deposit. Leverage allows you to increase the size of trade you can control with your investment capital.

It magnifies your profits but it can also magnify your losses. By following these 10 golden rules to forex trading, you should find yourself in a much better position over the long term. Your focus should always be on trading currency pairs that you understand, in a way that does not expose you to too much risk. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

Traders come from a variety of backgrounds, but typically share a core set of characteristics that enable them read more. On March 9 Wall Street racked up seven years of bull market activity, as measured by gains in Traders who buy and sell stocks on the same day are called day traders. This type of trader looks Spread betting and CFDs are very similar, so how should investors choose between the two?

Quite often you will The somewhat esoteric term 'black swan' simply refers to an event that has not been expected by the market A dear child has many names. The strategy below is called 'lost momentum' in my vocabulary, but it no You remember the film Trading Places?

The key scene takes place in the commodities trading pit for orange juice Being a successful trader goes a lot deeper than predicting price movements.

Here are six key things you should Currency pairs in the foreign exchange market are typically divided into three types: major, minor and exotic. Major currency Did you know that Bruce Lee's moves were too fast to be captured on the regular 24 frames-per-second film, Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. This firm has no connection to Intertrader whatsoever. For more information please see the relevant notes from our regulators, the GFSC and the FCA.

Intertrader's website, services and products are intended for use by or distribution to persons in any country or jurisdiction where such use or distribution is permitted under applicable law or regulation. Intertrader is a trading name of Alvar Financial Services Limited. Alvar Financial Services Limited is authorised and regulated by the Gibraltar Financial Services Commission, ref FSCMIF, and is subject to limited regulation with the Financial Conduct Authority in the United Kingdom, ref Registered address: Europort, Gibraltar, GX11 1AA.

Back to Blog. The 10 golden rules of forex trading Trading Strategies forex , leverage , risk management. Forex trading can be highly stressful — avoid emotional trading Whenever real money is changing hands, the risk of loss is ever-present. Invest in a solid forex education Knowledge is power — we all know that. You can learn to trade forex successfully No forex trading system guarantees success see rule 1 but some may be used as reliable guides.

Manage your forex capital wisely The forex markets can change on a dime, as currency markets are often characterised by high volatility. Manage your investment-per-trade wisely This is one of the most crucial aspects of forex trading. Ensure you use risk protection strategies at all times Risk protection varies from one trader to the next. Be especially cautious about overextending yourself with leverage Leverage allows you to increase the size of trade you can control with your investment capital.

The bottom line By following these 10 golden rules to forex trading, you should find yourself in a much better position over the long term. Published: 25 November You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. Related Posts 26 Sep September 26, com Customer care: Monday to Friday 24 hours a day. Why spread betting? Why trading CFDs?

Sometimes your trading plan won't work. Why trading CFDs? You need to choose the best Forex broker for you! Remember Rule 9: If you make a little bit every day, then you have earned the right to trade bigger. Related Articles.

Categories:

• Forex Brokers
• Forex Bitcoin
• Binary Options
• Binary Options online
• Forex