20 Forex Trading Tips
20 Quick Trading Tips
There is no doubt that trading requires more than
a few quick tips for success. You need experience, capital and, most
importantly, a solid trading system. However, for the average beginner
and those who perhaps are losing their focus because of significant
draw-downs, keeping things simple can help to introduce much needed
focus into your trading. Here are some tips that you can use for
trading that can help you in your efforts:
1. Never add money when you are losing.
2. Always determine a stop and a profit objective before you start
entering a trade. Place stops that are based on market information, and
not your account balance.
3. Remember the power of a position. You should
never make a market judgment when you have a position.
4. Your decision to exit a trade means that you
are able to perceive changing circumstances.
5. In a Bull market, you never want to sell a dull
market, in Bear market, you should certainly never buy a dull market.
6. There are times, due to a lack of liquidity, or
excessive volatility, when you should not trade at all.
7. Trading systems that work in an up market may not work in a down
8. There are at least three types of markets like
up trending, range bound, and down trading, and you should have a
different trading strategy for each.
9. Up market and down market patterns are always
there, and it is only that one is always more dominant. Select trades
that move along with the trend.
10. A buy signal that fails is really just a sell
signal. A sell signal that fails is a buy signal.
11. It's always easier to enter a losing trade.
12. During the blowout stage of the market, up or
down, the risk managers are usually issuing margin call position
liquidation orders. They don't check the screen for overbought or
oversold; they just keep issuing liquidation orders. It is best to make
sure that you don't stand in the way.
13. Follow your instincts.
14. Buy the news that you hear, sell the fact
15. News is only important when the market doesn't
react in the direction of the news.
16. It helps for you to read today's paper
tomorrow too. When you read yesterday's paper each day with the
knowledge of what the market already did.
17. You should never enter a new trade in the
direction of a gap. Never let the market make you make a trade.
18. The first and last tick are always the most expensive. Get in late
and out early.
19. When everyone else is in, it's time for you to
20. Never trade when you are sick because it
inhibits your instincts.