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Thread: 10 Rules in Forex trading

  1. #1
    Junior Member
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    10 Rules in Forex trading

    1. Never Let a Winner Turn Into a Loser
    2. Logic Wins, Impulse Kills
    3. Never Risk More Than 2% per Trade
    4. Trigger Fundamentally, Enter and Exit Technically
    5. Always Pair Strong With Weak
    6. Being Right but Being Early Simply Means That You Are Wrong
    7. Know the Difference Between Scaling In and Adding to a Loser
    8. What is Mathematically Optimal Is Psychologically Impossible
    9. Risk Can Be Predetermined, but Reward Is Unpredictable
    10. No Excuses, Ever

  2. #2
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    Understand basic forex terminology.

    Learning Forex Trading Basics-
    The type of currency you are spending, or getting rid of, is the base currency. The currency that you are purchasing is called quote currency. In forex trading, you sell 1 type of currency to purchase another type.
    The exchange rate tells you how much you have to spend in quote currency to purchase base currency. For example, if you want to purchase some U.S. dollars using British pounds, you may see an exchange rate that looks like this: GBP/USD=1.589. This rate means that you'll spend 1.589 dollars for 1 British pound.
    A long position means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U.S. dollars to purchase British pounds.
    A short position means that you want to buy quote currency and sell base currency. In other words, you would spend sell British pounds and purchase U.S. dollars.
    The bid price is the price at which your broker is willing to buy base currency in exchange for quote currency. The bid is the best price at which you are willing to sell your quote currency on the market.
    The ask price, or the offer price, is the price at which your broker will sell base currency in exchange for quote currency. The ask price is the best available price at which you are willing to buy from the market.
    A spread is the difference between the bid price and the ask price

  3. #3
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    Decide what currency you want to buy and sell.
    Make predictions about the economy. If you believe that the U.S. economy will continue to weaken, which is bad for the U.S. dollar, then you probably want to sell dollars in exchange for a currency from a country where the economy is strong.
    Look at a country's trading position. If a country has many goods that are in demand, then the country will likely export many goods to make money. This trading advantage will boost the country's economy, thus boosting the value of its currency.
    Consider politics. If a country is having an election, then the country's currency will appreciate if the winner of the election has a fiscally responsible agenda. Also, if the government of a country loosens regulations for economic growth, the currency is likely to increase in value.
    Read economic reports. Reports on a country's GDP, for instance, or reports about other economic factors like employment and inflation, will have an effect on the value of the country's currency

  4. #4
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    some tips for progressive trade-

    Set a take profit order for a simple goal with the daily time frame of 100 pips
    Look at the daily time frame over a big range of days and try to find the support or resistance area for setting your take profit
    Set your stop with trailing stop technique. It will secure your profits as the trade goes on
    All of these methods need some patience. Usually the new forex traders are tend to get nervous if the market go to the opposite direction immediately, or when the trade gets into a small profit so they get itchy to close the trade and leave with a small profit that could have been a big profit.

    If base on you plan, you have set stops and take profit, you do the trading with safe risk managment , so you can just let the trade to grow until it touch the stop or profit.

    Do this in every trade and evaluate every single loss and make your new plan base on the evaluation. You will see that you improve your own formula for making forex profit. It’s all a game of averages. In fact that you will lose some trades and you will win some trades too. Use the laws of probability and statistic, it will sharp the scales in your favor as long as you are discipline in follow the rules or plan and think carefully.

  5. #5
    Senior Member
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    I think one of the essential rules is to control emotions. If you follow your emotions, they won't lead you to success. Keep calm and earn money!

  6. #6
    This is definitely the biggest requirement as far I am concern, if we’re able to control our emotions then we could make massive income, but if we’re unable to do that then we could obviously struggle quite a lot. I always trade with proper money management and planning, so this is something that helps me with controlling emotions better. It also helps with helping OctaFX on my side with their giant 50% bonus on deposit which is also use able.

  7. #7
    Anyone got any good systems they use?

    Hello Everyone,
    Just joining the forum.
    I prefer not to sit in front of computer all the time so just 1-2 good trades a day is all really looking for.
    Anyone want to share?
    Also any nadex traders here?

  8. #8
    Thanks for the info I will dig into that a bit more.
    One I have used for a while that works is the eur/usd lunch time long system.
    I got it at mrbinaryoptions.com/free Trades the eur/usd at 12 noon eastern when the eur/usd is down all the rules etc..
    its pretty simple and works quite well especially at nadex

  9. #9
    nice tips. All traders can follow this. If any traders trade according to this rules, then he can be good trader and make profit from Forex.
    GICMarkets.com | Instant Deposit broker | Fast Withdrawal Process | 3 Level IB Commission

  10. #10
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    One should not just follow few rules. There are thousands of rules discovered by people. It worked for them so they suggested it. Some are more common than others.

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