learn forex

Draw Up A Set Of Forex Trading Rules And Stick To Them

One of the biggest problems with Forex trading for many novice traders (and quite a number of experienced traders) is that they are no real rules to follow.

In one sense this is of course one of the advantages of Forex trading and it is good to be able to trade when you want to, to open and close trades when you feel like it, to increase or reduce an existing position and indeed not to trade at all if you don't feel like it.

But this very freedom can also make Forex trading dangerous.

Whatever we do in life there can be little doubt that we do much better when we know exactly where we are going and have a roadmap to get us there. But, even if we have a map to follow, it is also vital that we have a set of instructions to keep us on course.

In foreign exchange trading those traders who follow a set of rules undoubtedly enjoy far greater success than those who simply 'wing it' and, if you talk to those traders who do follow a set of rules, they will tell you that when they follow the rules they generally have a good day and when they don't follow the rules they often run into trouble.

Now, since the Forex market doesn't have any rules, you will have to create your own. Just what rules you draw up will very much depend on your trading strategy but what sort of rules are we talking about?

Well, one very good rule which you might set for yourself is that of not entering a trade without first putting a stop loss order in place. You might also set down a number of rules detailing the specific conditions which must be met before you will enter a trade. In other words, you clearly specify that you will not enter a trade simply because you have a good feeling about it, but will only do so if your market analysis, as defined by your set of rules, tells you that you should enter a trade. Finally, you might stipulate that whenever you find yourself in a profitable trade you will always protect your position by moving your stop whenever your profit reaches a pre-determined level.

These are just a few ideas of the type of Forex trading rules you might lay down and your own list will of course have to be drawn up to meet your own particular trading strategy.

Whether you have a long or a short list of Forex trading rules is not important, but it is extremely important that you draw up a list and that that you then stick to it.



Recommended books from

In Serena's Web
by Hooper, Kay
Amazon Price:
Customer Review: This book is one of her early releases through the now defunct Loveswept Romance line. Her ability to take the "formula" of their line and add humor and quick-pacing is what lifted her out into the mainstream of contemporary romance / mystery. But as with Nora Roberts' early stuff, don't expect the sophistication of her new material. Just enjoy i...
 
How to Make a Living Trading Foreign Exchange: A Guaranteed Income for Life (...
by Courtney Smith
Amazon Price: $44.10
Customer Review: I've read quite a few books since I've decided to decipher the egnima of Forex. This book is well written and covers some very interesting topics. The stratagies it teaches and some of the perspectives it offer are some of the most useful and luid I have come across.
A definate on your reading list!!
 
AbleTrend: Identifying and Analyzing Market Trends for Trading Success (Wiley...
by John Wang, Grace Wang
Amazon Price: $37.80
Customer Review: The book appears to tie in with the system the author sells for approximately $5000 plus modules for an additional cost per month. I was a fool and bought the system with the understanding it was complete and self contained at the lump sum price. Then after about a year of service, I got the module cost dropped on me. Sadly, the system didn't w...
 
forex trading rules - Google News

5 Ways to Stay Profitable in a Scary Market - The Options Insider
28 Jul 2010 at 12:34pm

5 Ways to Stay Profitable in a Scary Market
The Options Insider
Learn how with The 10 Keys to Successful Forex Trading by Jared 'FXCHIEF' Martinez. Jared is your guide in this easy Forex tutorial covering the market's ...
Tackling Those Unanswered QuestionsFXstreet.com The Forex Market

all 6 news articles »

 
New Solution Created for Regulatory Margin Requirement - NewsBlaze
29 Jul 2010 at 2:03am

New Solution Created for Regulatory Margin Requirement
NewsBlaze
New York, NY, July 29, 2010 --(PR.com)-- ActForex, Inc, the leading provider of independent retail Forex trading platforms, today announced the creation of ...

and more »

 
Is There a Magic Formula To Forex Trading Success? - Forex Hound
31 Jul 2010 at 1:08am

Is There a Magic Formula To Forex Trading Success?
Forex Hound
While still trading on a small account, develop a trading plan according to the rules of your method. Make it realistic so that it will not be tedious to ...

and more »

 


Learn Forex Trading Online

Forex Trading Currencies

International Currency Codes

The Mechanics Of The Forex Narket

A Simple Forex Quote

The Forex PIP

Forex Mini Account

Forex Articles



Copyright © 2007-2010 Learning Forex Trading Online - All Rights Reserved