To operate in the forex market need to be a profitable trader, and based on that we will follow these principles:
Be experienced – probably the biggest myth spread to any beginner who want to operate is that you will make money in no time. But I assure you that the only way to make profitable each day comes from experience: countless hours learning and study. This is the key to becoming a good trader.
Working obsessively – monitors the market daily, analyzing each impact that may affect your transaction and always follow any relevant information that may bring harm or profit for your operation.
Operate to make money, not to be right – We need to know our strengths, the pitfalls and the forex market shortcuts. Uses his knowledge to reduce the emotional impact.
Know your limits – need is more concerned about what can go wrong than what could go right. We can not be convinced easily, we must first analyze the entire risk of the operation. Having a sense of self discipline and self-control.
Have limit and know concerning it – No it will not survive long in the market.
We need a plan, and follow faithfully – Each operation is planned and opportunities are analyzed before any operation starts. In this way we will operate not in excess.
Control risk – Even if we are confident about an operation, we have to do everything in order to minimize any damage, we will always need to keep in mind the rule 1 market: anything can happen.
We need to think about the operation and not about the money involved – think only of the money can take the focus in the operation. The money is due.
Have patience – Knowing that the money will come in time.
See some more tips on how to trade the forex market:
– Never open a new trade if you already have a negative trade open.
– Always determine your STOP-LOSS and TAKE-PROFIT before entering the market. Establish your STOP based on market information, not in your account. If a STOP-LOSS is too long not operate.
– At times, due to high liquidity, excess volatility you should not operate.
– Strategies that work in a bull market can not function in a bear market.
– There are at least three types of market: upward, downward and range (lateral). Has a differentiated strategy for each of them.
– Select the operations according to market direction. Do not sell if the market is in an uptrend, or buy if the market is in a downtrend. In a bull market, for example, is easy to identify sell signals.
– A buy signal that fails is a sell signal. A sell signal that fails is a buy signal.
– Buy in fervor, sell on the news.
– News is only important when the market does not follow the direction of the news.
– Read the newspaper today! When you read yesterday’s newspaper every day, it realizes that today’s newspaper with news yesterday is unrelated to the market today!
– When everyone is inside it is time to leave.
– Never operate when you are sick.
– Size kills! Just increase its volume of operations after a successful period.
– Confidence kills! Remember that you know nothing. Respect the market every second of the day. Expect the unexpected.
– Measure yourself in a series of successful days, rather than individual operations.
– The best way to break a sequence of losses is not operate for one day or more days, if necessary.
– Never regret by a missed opportunity. Always appeared another chance, in fact many opportunities occurred and you have not learned.
– If you are looking for trade secrets, you will find things that nobody cares. Use conventional tools.