Twenty winning forex trading rules
Making reliable profits on the financial markets on a regular basis is harder than it looks at first glance. In fact, unofficial estimates suggest that more than 80 percent of all traders eventually fail, leave and turn to safer hobbies. But the brokerage industry rarely publicizes client problems because they are likely worried that the truth will scare away new accounts. In fact, the rate can be much higher than 80 percent. In fact, success in trading is difficult and the consistently profitable traders share specific rare characteristics. These 20 rules are tips that longtime pros use to stay in the winner’s circle.
The road to long-term profitability
Long-term profitability requires two related skills. The first is to identify a set of strategies that make more money than you lose and then use the strategies as part of a trading plan. Second, the strategies must work well while the market is experiencing both bull and bear impulses. In other words, while many traders know how to make money in specific markets, like a strong uptrend, they fail in the long run because their strategies don’t adapt to inevitable changes in market conditions. Profitable trading is difficult and successful traders share specific rare characteristics. It is estimated that more than 80 percent of traders fail and quit. A key to success is to identify strategies that generate more profits than losses. Many traders fail because strategies do not adapt to changing market conditions. Classic rules from pro traders can help keep a strong focus on profitability. Can you break out of the group and join the professional minority with a strategy that increases the odds of long-term prosperity? Can you separate yourself from the herd of wannabe traders and achieve trading success? Start with a clear and concise plan with proven strategies, then apply the 20 rules that follow.
1. Stick to your discipline
Discipline cannot be taught in a seminar or found in expensive trading programs. Traders spend thousands of dollars trying to compensate for their lack of self-control but few realize that a long look in the mirror accomplishes the same task at a much lower price. The important lesson is that once a trader has confidence in their trading plan, they must have the discipline to stay the course, even when there are inevitable losses.
2. Losing the great mass
Long-term profitability requires positioning ahead of or behind the great mass, but never in the crowd because that’s where the predators’ strategies are focused. Stay away from Facebook groups and chat rooms, where people are less than serious and many of them have ulterior motives.
3. Work on your trading plan
Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan when you get into a hole and are looking for a way out.
4. no shortcuts
Your competitors spend hundreds of hours creating perfect strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. The only way to achieve long-term success is with hard work and discipline.
5. avoid the obvious
Profits rarely come from following the majority or the crowd. When you see a perfect trade setup, it’s likely that everyone else sees it too, place yourself in the crowd and set yourself up for failure.
6. Don’t break your rules
You create trading rules to get out of trouble when positions go bad. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even bigger losses.
7. avoid market gurus
It’s your money at stake, not theirs. Keep in mind that the guru may be talking about their own positions, hoping that the happy chat will increase their profits, not yours.
8. use your intuition
Commerce uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you’re comfortable with math, you might want to try improving the results with meditation, some yoga poses or a quiet walk in the park.
9. do not fall in love
If you’re too in love with your stock, your currency pair, your commodity or your investment, you’re giving way to flawed decision-making. It’s your job to take advantage of inefficiencies, making money while everyone else is acting the wrong way.
10. Organize your personal life
Whatever is wrong in your life will eventually transfer to your trading performance. This is especially dangerous if you haven’t made peace with money, wealth, and the magnetic polarity of abundance and scarcity. Keep your trading needs separate from your personal needs and take care of both.
11. Don’t try to level up
Losses are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track. Don’t try to make up for a losing trade by trading more. Revenge trading is a recipe for disaster.
12. Watch out for the warning signs
Big losses rarely occur without multiple technical warning signals. Traders routinely ignore these signals, allowing hope to replace thoughtful discipline and exposing themselves to pain. In short, keep an eye out for early signs that market conditions are changing and creating risks to your positions.
13. Utilities do not believe
Some traders try to compensate for inadequate skills with expensive software, packaged with all kinds of proprietary buy and sell signals. These tools can interfere with valuable experience when you think the software is smarter than you are. Use tools that fit with your trading plan, but remember that ultimately you decide when to make the trade.
14. use your head
It’s natural for traders to emulate their financial heroes, but it’s also a perfect way to lose money. Learn what you can from others, then step back and create your own market identity based on your own unique skills and risk tolerance.
15. Forget the holy grail
Losing traders fantasize about the secret formula that will magically improve their performance. In reality, there are no secrets because the path to success always goes through careful choices, effective risk management and skillful profit taking.
16. Forget about the wage mentality
We learn to get through the working week in exchange a wage. This wage goes against the natural flow of trading profits and losses over the course of a year. In fact, statistics indicate that most annual profits are booked in just a handful of trading days. 252. It is the number of actual trading days in a typical calendar year, as most markets are closed for holidays and weekends.
17. Do not count your chickens
It’s okay to feel good about a deal going your way, but the money isn’t yours until you close or cover the position. Lock in what you can as early as possible, with a trailing stop or take home part of your profit, so the hidden hands of the market can’t take your profits at the last minute.
18. Embracing simplicity
Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators, keeping in mind that their primary function is to confirm or refute what your eye already sees.
19. accepting the losses
Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson if you are open to the message. Also, learn when to stop and take a break from trading. Accept the losses, take the time to regroup, and come back to the market with a fresh perspective.
20. Beware of kicks and thrills
Active trading releases adrenaline and endorphins. These chemicals can bring feelings of euphoria even when you lose money. In turn, this encourages addictive personalities to take bad positions, just to get in the kick. If you’re trading to get kicks and thrills, you’re probably trading for the wrong reasons.
Conclusion
Most traders fail to utilize their full potential, eventually cashing in their chips and finding more traditional ways to make money. Become a proud member of the professional minority by following classic rules to keep a razor-sharp focus on profitability.
About the Vikingen
With Vikingen’s signals, you have a good chance of finding the winners and selling in time. There are many securities. With Vikingen’s autopilots or tables, you can sort out the most interesting ETFs, stocks, options, warrants, funds, and so on. Vikingen is one of Sweden’s oldest equity research programs.
Click here to see what Vikingen offers: Detailed comparison – Stock market program for those who want to get even richer (vikingen.se)
