Posts Tagged ‘trading lesson’

Forex trading lesson

Forex trading lesson:  The absolute basic tenets

Each and every day in forex trading, you will learn something new – you may learn about different indicators, pips, leverage, margins, stop placement, etc.  There is always something new to be learned.  But, truly, the most important forex trading lessons are these – the most basic, common sense, forex tenets, which you should learn now and carry with you through all of your forex trading days.

Forex Trading Lesson #1:

In forex trading, accept that not every trade will result in a profit; losses are inevitable.

Forex Trading Lesson #2:

Learn as much as you can about forex trading; never assume that you know everything (because you don’t).

Forex Trading Lesson #3:

Discover your strengths; use them to your advantage.

Forex Trading Lesson #4:

Understand your limitations; learn how to work around them, with them or change them.

Forex Trading Lesson #5:

Don’t be greedy; quit when you’re ahead (and no moving the Take Profit).

Forex Trading Lesson #6:

Never try to recoup your loss by overcompensating on the next trade; deal with it in the same consistent manner as you normally would.

Forex Trading Lesson #7:

Accept that you can’t always accurately predict the future of the market; while you may get lucky once in a while, no one can do it capably 100% of the time.

Forex Trading Lesson #8:

Accept that the market is a fickle beast; first it’s your friend, then it’s not and it only takes a split second for the market to change direction.

Forex Trading Lesson #9:

Don’t move your Stop Loss again and again, in the hope that the market will reverse; you put your Stop Loss in place for a reason.

Forex Trading Lesson #10:

Spread your risk and optimize your chances for successful trades; activate smaller trades, reduce your leverage and trade different currencies.

Forex Trading Lesson #11:

Trade with your head, not with your heart, and, certainly, not with your gut; emotions have no place in forex trading, and instinct isn’t always right.

Forex Trading Lesson #12:

Stick with the good money management strategy you originally created; changes to your strategy should be well-planned and not a result of impulsiveness.