6 Golden Rules of Forex Trading (1) - PowerPoint PPT Presentation

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6 Golden Rules of Forex Trading (1)

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Over the past decade years, the Forex market has become the largest financial market in the world. FX trading takes consistent discipline to yield success. Below we discussed 6 Golden Rules of Forex Trading which will help you to become a successful trader. – PowerPoint PPT presentation

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Title: 6 Golden Rules of Forex Trading (1)


1
6 Golden Rules of Forex Trading
2
Index
  • Forex Market
  • 6 Golden Rules of Forex Trading
  • 1. Don't Expect to Make Profits From Day One
  • 2. Have a Trading Plan
  • 3. Minimize Losses By Setting A Stop-loss
  • 4. Keep Your Emotions Aside
  • 5. Always Do Analysis
  • 6. Adapt Quickly

3
Forex Market
  • Over the past decade years, the Forex market has
    become the largest financial market in the world.
  • The Forex market is also widely accessible, and
    plenty of resources are available.
  • But many traders are often discouraged by not
    seeing profit from it.
  • FX trading takes consistent discipline to yield
    success.

4
6 Golden Rules of Forex Trading
5
1. Don't Expect to Make Profits From Day One
  • Most new traders face a common problem
  • 1. Lose money
  • 2. End up out of the game immediate than they
    would have anticipated.
  • It's common for traders to double their capital
    within their first week of trading then lose it
    all soon after because of over-confident trading.

6
  • Trade small and build-up profits slowly.
  • Some traders get succeed in the early stages of
    their career.
  • It takes time and patience.

7
2. Have a Trading Plan
  • Having a trading plan is one of the golden rules
    of Forex trading.
  • A trader with a plan is more likely to succeed
    than someone without it.
  • What things you should have
  • 1. Trading Strategy Outlined
  • 2. Entry and Exit points explained
  • 3. Stop-losses and Take-profits set.

8
  • Stick to the plan is the main element in your
    trading.
  • A modifying plan should only happen when you have
    no positions opened.
  • Do not modify your trading plan so that you can
    keep the losing position open for a long period.

9
3. Minimize Losses By Setting A Stop-loss
  • This technical advice should be fundamental to
    the trading plan.
  • As previously discussed, many new traders lose
    capital and are unable to move forward.
  • Setting up stop-loss means minimizing the losses
    and having capital available to trade for another
    day.

10
  • This is a general trading rule that every trader
    should stick to, and it's one of the top Forex
    trading rules.
  • A stop-loss
  • 1. Sets a limit at which your losing position
    will be stopped.
  • 2. Deciding on how many pips you can afford to
    lose.

11
4. Keep Your Emotions Aside
  • Forex trading can be exciting and stressful both
    at the same time depending on profits or losses.
  • As a result, controlling the emotions is one of
    the essential Forex rules to live by.
  • There is no room for mistakes in the Forex market
    once you have lost money, there is no undoing it.

12
  • 1. Don't think you can focus only on trading
    during a session, and you should not be trading
  • 2. If you are not in a good mood, take a break
    from trading and return when you are feeling
    good.
  • Trading when you are too excited can be as
    detrimental.

13
  • We all know how easy it is to make decisions
    without thinking clearly.
  • Trading is a manual activity, which needs to be
    done with the highest level of discipline.

14
5. Always Do Analysis
  • Your trading history is the source of your
    knowledge.
  • Get the maximum benefit from this, by exploring
    what you have done in the past and analyzing how
    the market behaved at this time.
  • Establish these review sessions on a daily or
    weekly basis and assess how you can improve your
    trading strategy.
  • Learning from others is great but First, try to
    learn from your own mistakes and successes.

15
  • Don't focus only on the losing trades sometimes
    analyzing profitable trades can be even more
    beneficial.
  • And if you have been making losing trades
  • 1. If you learn from your mistakes
  • 2. You have gained valuable knowledge and
    experience to adjust your strategy.

16
6. Adapt Quickly
  • Market behaviour tends to change.
  • So it's vital to modify the trading strategy and
    adapt quickly, by consistently adding new items
    to it.
  • The scope of the Forex market is huge, and so is
    the scope of the items you can learn about it.
  • Don't think that if your current trading strategy
    works, it will work over a long period.

17
  • Successful Forex trading requires you to follow
    rules of currency trading including
  • 1. Correct Implementation
  • 2. Analyzing
  • 3. Learning.
  • Learning and adapting from trades, should be a
    repetitive process.
  • If you stop learning and analyzing, then you stop
    growing as a trader.

18
Thank You
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