Trading forex is a risky business. A lots of passions and control on your nerves is the key to success. You must have following things in your mind while entering a trade.
1. You must know why you are entering into a trade. At times the traders forget the reason why they entered. After making the moves they keep looking at other indicators and overlook the reason to their entry. This makes them cut themselves in loss and later the when the market moves to the same direction, it makes them repent on their decision.
2. Always use a simple system consisting of not more than 3 to 4 indicators. Remember it is the consistency which makes you successful.
3. Set your profit point and risk level(stop loss) before you enter the trade and do not change it unnecessarily.
4. If a set of indicators give you a loosing trade do not change the system, because every system is successful 60-80%. Do not get bugged by the 20% loosing time. Other wise you will loose the next 80%wins.
5. Do not trade more than 1% of your equity if you are a beginner. make your successes consistent and then move the trade amount to 10% of your equity.
These are very simple rules to follow. So use them and happy trading.
1. You must know why you are entering into a trade. At times the traders forget the reason why they entered. After making the moves they keep looking at other indicators and overlook the reason to their entry. This makes them cut themselves in loss and later the when the market moves to the same direction, it makes them repent on their decision.
2. Always use a simple system consisting of not more than 3 to 4 indicators. Remember it is the consistency which makes you successful.
3. Set your profit point and risk level(stop loss) before you enter the trade and do not change it unnecessarily.
4. If a set of indicators give you a loosing trade do not change the system, because every system is successful 60-80%. Do not get bugged by the 20% loosing time. Other wise you will loose the next 80%wins.
5. Do not trade more than 1% of your equity if you are a beginner. make your successes consistent and then move the trade amount to 10% of your equity.
These are very simple rules to follow. So use them and happy trading.
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