1. Learn to take the losses.
The most important thing about making money is not to let your losses get out of hand.
2. Money management.
If you have an approach that makes money, then money management can make the difference between success and failure.
3. Do not fear the market.
Many new traders allow themselves to be frozen with fear over the risks and uncertainties of trading. Great traders get past it.
4. Personal responsibility.
Great traders accept personal responsibility for everything they do. You're the one pulling the trigger. Great traders know that all the trades they make, good or bad, are on them.
5. Motivation and determination.
You need a lot of motivation and determination to succeed. You have to accept that the most successful traders probably spent hours on testing out different strategies before they find a profitable one, and probably lost money in the process. So don't be put off if you initially lose money because as long as you can stay in the game long enough to refine your trading strategy, and have a willingness to succeed, then there's no reason why you can't become a top forex trader and make substantial profits.
6. Trade on the news.
Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices changes result in a serious currency flow.
7. Exiting Trades.
If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal
8. Psychological Factor
Stress is a natural part of trading; get used to it. Don't let your emotions sway you.
10. Go with the price direction – "The trend is your friend".
Trade in the direction the price is going in and you're results are almost guaranteed to improve
The most important thing about making money is not to let your losses get out of hand.
2. Money management.
If you have an approach that makes money, then money management can make the difference between success and failure.
3. Do not fear the market.
Many new traders allow themselves to be frozen with fear over the risks and uncertainties of trading. Great traders get past it.
4. Personal responsibility.
Great traders accept personal responsibility for everything they do. You're the one pulling the trigger. Great traders know that all the trades they make, good or bad, are on them.
5. Motivation and determination.
You need a lot of motivation and determination to succeed. You have to accept that the most successful traders probably spent hours on testing out different strategies before they find a profitable one, and probably lost money in the process. So don't be put off if you initially lose money because as long as you can stay in the game long enough to refine your trading strategy, and have a willingness to succeed, then there's no reason why you can't become a top forex trader and make substantial profits.
6. Trade on the news.
Most of the really big market moves occur around news time. Trading volume is high and the moves are significant; this means there is no better time to trade than when news is released. This is when the big players adjust their positions and prices changes result in a serious currency flow.
7. Exiting Trades.
If you place a trade and it's not working out for you, get out. Don't compound your mistake by staying in and hoping for a reversal
8. Psychological Factor
Stress is a natural part of trading; get used to it. Don't let your emotions sway you.
10. Go with the price direction – "The trend is your friend".
Trade in the direction the price is going in and you're results are almost guaranteed to improve
11. One trade at the time.
The EUR/USD seems to be trading higher, so you buy GBP/USD because it appears not to have moved yet. This is dangerous. Focus on one Major at a time - if EUR/USD looks good to you, than just buy EUR/USD.
12. Stop loss policy.
You should have one and practice sticking to it. It will not be easy but it is an essential discipline to profitable trading.
13. Trading plan / system.
You should develop one! Then you must practice sticking to it. Do not try and second guess or trade against your trading plan
14. Take profit.
Try hard not to get out of profitable trades too early.
15. Don’t take loss on a winning position.
Once the market is going your way and your position reflect a positive P&L you will try to take as much profit as you possibly can. Some times the market will turn against you and at that point you must to close the position and not let it became a losing one.
16. Scaling up not down.
Scaling isn’t a bad thing it is just has quite a big toll if you don’t know how to use it right. The efficient way to use scaling is by increasing your winning position only. Once you see that you were right about the direction the market is taking, it's time to increase your position. A lot of traders increase a losing position hoping that the market will turn in their favor. It might happed from time to time but most of the time it will drag you down to a massive loss.
17. Have a plan and stick with it.
Be prepared for your trade. Look at the market and plan your trade. You must know your take profit and stop loss rates before you enter the trade.
Once you planed your trade you can be either right or wrong, the important thing is to stick to your plan. It maybe sounds easy to do but once you are in position and your emotions are involved it becomes essential.
18. Know why. Always know why you trade the way you trade.
This means that there is a reason why the trade should work and why you should have a winning position.
19. Momentum. In trading momentum can be a huge factor.
Traders are finding themselves in a positive or negative momentum; these momentums are caused by a synchronicity with the market or a lack thereof. That’s why when you have the momentum with you, you should open a bigger position and vice versa.
20. Don't waste your time on a losing position.
If you find yourself in a losing position while the market has plenty of opportunities to trade, do not waste your time on trying to save your position. It will be better to close your position and open a new and successful one.
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