Part 2 – Forex trading tips
Following on from Part 1 – Forex trading tips, we will today look at further ways of avoiding novice trading mistakes.
1. Remain disciplined and follow your rules.
One of the most important skills needed in trading is being able to be disciplined. You need to be able to decide on how to apply your set criteria to each trading situation and then be able to go ahead and apply it without compromise. It is very easy to lose your focus and compromise on your criteria because you want to trade, however you should be disciplined not to do this as you need to make sure that every trade meets all of your trading conditions. As discussed in Part 1 – these trading conditions are defined criteria which you have set out and agreed with your mentor before you start any trading.
2. Never risk more than you can afford to lose.
This statement may sound obvious but it is probably the most important rule in Forex trading. This is important for 2 reasons, firstly, for financial reasons, and secondly, if you are trading money that you can’t afford to lose, this can compromise and affect your judgement which could mean your trading decisions will be influenced by the worry of losing this money. If this compromises your trading decision making, it will result in poor trades.
By following the Trading tips above and those previously covered in Part 1, you are greatly enhancing your chances of becoming a successful Forex trader.