Be A Success Trader
To be successful in the trading game, there are some rules you need to follow. By violating the rules, you will definitely on the losing side of the game. Regardless of all the trading books and newsletters that have cropped up, all of the market gurus are sharing and following the same trading rules. You can’t live without them if you want to succeed in your trading.So,please put in mind all these rules,and make it as your routine rules when to start trading. Here are the rules to successful trading, in random order, and they apply in all trading situations:
Good luck in your trading...Happy trading! :-)
- Plan Your Trade And Trade Your Plan
- The Trend Is Your Friend
- Focus On Capital Preservation
- Know When To Cut Loss
- Take Profit When The Trade Is Good
- Be Emotionless
- Do Not Trade Based On A Tip From A Friend Or Broker
- When In Doubt, Stay Out
- Do Not Overtraded
Risk only small percentage of total account
When playing a forex,a money management is very important.Money management is a way traders control their money flow: in or out of pockets... Yes, it's simply the knowledge and skills on managing a personal Forex account.There are several rules of good money management,one of that is by putting a small risk percentage of your total account.
Why is it so important?
The main idea of the whole trading process is to survive!
Survival first, and only then making money on top.
One should clearly understand, that Big traders first of all are skillful survivors. In addition, they usually have deep pockets,which means that under unfavorable conditions they are financially able to sustain big losses and continue trading.For the ordinary traders, the majority of us, the skills of surviving become a vital "must know" platform to keep trading accounts alive and, of course, to make good stable profits.
Let's take a look at the example that shows a difference between risking a small percentage of capital and risking a bigger one.In the worst case scenario of ten losing trades in a row the balance of trader's account will suffer this much. Below are the table of your money management as your guide.
source:freeforextips