Forex - 10 Tips

Discussion in 'Forex Trading' started by ICM Capital, Feb 1, 2013.

  1. 1. Do not overtrade
    - Trade within your means
    - Use 1/3 of your total margin only

    2. Always use protective stops to limit losses
    - Go in with a plan
    - Don't trade impulsively
    - Have predetermined risk as well as profit
    - Don't move stops higher or lower and say "It'll come back."

    3. Diversify your portfolio
    - Try to avoid "Loading up" in any one commodity or product

    4. Keep emotions in tact
    - Don't make trading decisions based on "Fear and Greed", as hard as this may be
    - Make decisions away from the market - "Don't be a screen watcher"
    - Don't let ego get in the way

    5. Trade in the direction of the immediate trend
    - Don't try to pick bottoms or tops

    6. Don't add to losing positions - get out!
    - Don't Average "Down" or "Up"

    7. Keep it simple, more complicated is not always better
    - Trade within your understanding of the markets

    8. Employ approximately a 3:1 reward to risk ratio
    - Don't ever risk $2 to make $1

    9. Always be a student and keep learning

    10. Above all, be disciplined
  2. that 3 to 1 bracket trading is a good way to go broke

    nobody is that good (for very long)

    yet they still talk about it

    doubt you'll ever find an old trader who uses it

    but it looks good on paper

    try risk to reward of one to infinity

    that will pay for a lot of sins

    doubt you will make it very far if you don't average down

    but you better know how to take a loss without a moments hesitation

    margin? start out small and use it all