30 Rules to be a Successful Forex Trader

Author: singapore trader

30 Forex Trading Rules to Your Trading Success

Trading Principles

When you start out trading the key element that you must set up are the principles and guidelines for how you are going to trade. By implementing these rules and principles you are increasing your chances of becoming a successful forex trader. As without principles and guidelines you are trading without a goal in mind- so why are you trading?. Over 90% of forex traders will end up going broke and not making money from the marketplace, and the one of the key causes is because they have no principles and they also lack discipline. Here are some principles to Get you started towards becoming a successful forex trader.


The other question you need to ask yourself is do you really want this? What are the reasons that you are doing this? If you right this down and continually look at the reasons why you will increase your chances of becoming a successful trader.


At the CFD FX REPORT we are big believers in these principles and we make sure that we are continually developing our members on getting better traders.

If you are looking for a great Forex Broker that can help you implement these rules then please feel free to contact us support@cfdfxreport.com


The 30 Rules to Follow to Forex Trading Success:


1. You should never over-trade- Don't trade for trades sake, you will lose otherwise
2. Make sure that you never risk more than 10% of your trading capital in a single trade, protecting your capital is very important. There will be more trade opportunities
3. Ensure that you never trade without careful stops and use trailing stops
4. Don't cancel a stop-loss after setting the trade- other than get out
5. Never average down on a suffering trade
6. When you get into a profit never let it run into a loss.
7. Never buy or sell just because the price is low or high, as what is high and low
8. Never try to think tops or bottoms- otherwise go to the casino and pick black or red
9. You should never limit a profiting trade, instead move your stops to guarantee a profit- ideal trading is as soon as you get into a good profit at aleast ensure a break even
10. You should never close a position toget out of the marketplace because you have lost patience or get in because you are anxious from waiting.
11. Please never hedge a losing position.
12. Never change your position or close a trade without a great reason.
13. Never follow a blind man's advice, everyone has trading certainties. Use systematically approach
14. Make sure that you never enter a trade if you are unsure of the trend. Never buck a trend. Remember the rule TREND IS YOUR FRIEND
15. Try to avoid scalping for little profits and taking large losses if you scalp you need tight stops
16. Avoid trading after long periods of failure- take a break, re look at your goals.
17. If you have a great run don't keep raising your trade size, otherwise you will blow yourself up. Remember great runs will come to an end, and sometimes great runs turn into bad runs.

18. Avoid getting in misguided or getting in right and out wrong, making a big mistake.
19. Always identify firm support/resistance levels.
20. Always lock in a profit at predetermined increments on profiting trades.
21. EVERY trade must have stop losses
22. Always distribute your risk equally among different markets.
23. Don't be a one trick pony, make money from both sides of the marketplace
24. Always reduce trading after the first loss; never increase, it is ideal if you use equal trade sizes, do not double up and try and get your money back.
25. Always cut your losses short and let your profits run- remember learning to take a loss is the first step to trading success.
26. When in doubt, get out. Do not get in when in doubt- back yourself if it doesn't feel right don't do it. Follow your gut sometimes as most of the time it is right.
27. Only trade active markets- illiquid markets will leave you thirsty- remember small markets are easy to get in, but remember you always have to get out. This is why forex trading is so popular.
28. Only pyramid trades that have a firm trend and should be accomplished once the price has crossed support/resistance.
29. Profits from a successful trade should be saved for future trade security deposits or put somewhere else, spread the risk.

30. Make sure you follow your rules


Extra Trading Tools:


Who are you? Are you a risk taker? Can you afford to lose money? First thing to do is to understand yourself the type of trader that you are, whether aggressive or conservative, long-term or short.


If you are short term and trade goes bad, cut it, don't become a long term trader, other than you buying and hoping, not even buying and holding.
Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss.

Understand why a win/loss occurred and how you could of made the trade better.
Consistency is the key to trading success, without it you have nothing.
Your assessment is the only care, do not let outside factors affect the way you trade.
Not everyone can be a trader, deem yourself worthy if given this opportunity.

Most importantly have fun and stick to your rules and hopefully by following these rules they will increase your chances to becoming a successful forex trader.


I hope this helps you achieve your goals.


Happy Trading


Article Source: http://www.articlesbase.com/currency-trading-articles/30-rules-to-be-a-successful-forex-trader-709896.html
About the Author
CFD FX Report www.cfdfxreport.com is a real time tool for clients with an interest in the trading of stocks, indices and commodities globally.CFDs (Contracts For Differences) are one of the worlds' fastest growing trading instruments that allows clients to profit from a rising and falling market. The CFD FX Report is a company comprising of expert traders that analyse the market daily and are able to make recommendations for the following day trades based on this analysis. The CFD FX Report is released everyday at 6.30 p.m. (Singapore time) for review by the clients for the next trading day.
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