5 Best Golden Rules of Currency Trading

5 Best Golden Rules of Currency Trading

Golden rules are quite special rules that you should always keep in mind and never forget. They’re extremely important and useful guideposts to help you keep on the right track and going in the right direction.

Listed Below Are My 5 Best Golden Rules to Forex Investing

Golden Rule # 1, Always trade with a plan.

If you want to be a profitable trader you need to plan in advance; you need a good system that operates in a mechanical way. You must know what to do on every case scenario. Remember, prepared traders always know what to do!

Golden Rule # 2, Never deviate.

When you are trading, you need to be consistent in your executions if you want to make money. Trust your system and let it work. Remember that discipline is the difference between successful traders and everybody else.

Golden Rule # 3, Don’t watch your screen all day.

There are certainly good reasons you’ll want to do this. Among them are that it is very stressful to watch price movements all day long, and it can cloud your judgment Maluku. A stressed trader is like a money burning machine. Long periods in front of the computer induce over-trading, big reason most traders lose.

Golden Rule # 4, Money management

If you don’t want to wipe out your account, like 95% of the traders, you need to add sound money management rules into your trading decisions. To achieve this you have to risk between 1%-2% max on every trade.

See Also:  Using Common Sense in Forex Trading

Golden Rule # 5, Develop the right mindset

Having the right mindset is the top virtue a Forex trader can aspire to acquire. Know yourself and you will conquer. You may accomplish this by getting some silent time everyday to think, and meditate. This can be really critical, you should never underestimate the importance of having the right mindset, and the dangers of having the wrong one

Carefully follow these golden rules to Forex investing and you will probably find your progress to be quite rapid. Trading can be a rewarding occupation. Anyone with determination and the right information can learn how to trade. The only thing you need is good mechanical system with positive expectancy, sound money management rules, and above all self-discipline.