6 Golden Rules of Forex Trading

Index
1. Forex Market
2. 6 Golden Rules of Forex Trading
1. Don't Expect to Make Profits From Day
One
2. Have a Trading Plan
3. Minimize Losses By Setting A Stop-loss
4. Keep Your Emotions Aside
5. Always Do Analysis
6. Adapt Quickly

Forex Market
 Over the past decade years, the Forex market
has become the largest financial market in the
world.
 The Forex market is also widely accessible, and
plenty of resources are available.
 But many traders are often discouraged by not
seeing profit from it.
 FX trading takes consistent discipline to yield
success.

6 Golden Rules of Forex Trading

1. Don't Expect to Make Profits
From Day One
 Most new traders face a common problem:
1. Lose money
2. End up out of the game immediate than they
would have anticipated.
 It's common for traders to double their capital
within their first week of trading then lose it all
soon after because of over-confident trading.

 Trade small and build-up profits slowly.
 Some traders get succeed in the early stages of
their career.
 It takes time and patience.

2. Have a Trading Plan
 Having a trading plan is one of the golden rules of
Forex trading.
 A trader with a plan is more likely to succeed than
someone without it.
 What things you should have:
1. Trading Strategy Outlined
2. Entry and Exit points explained
3. Stop-losses and Take-profits set.

 Stick to the plan is the main element in your
trading.
 A modifying plan should only happen when you
have no positions opened.
 Do not modify your trading plan so that you can
keep the losing position open for a long period.

3. Minimize Losses By Setting
A Stop-loss
 This technical advice should be fundamental to
the trading plan.
 As previously discussed, many new traders lose
capital and are unable to move forward.
 Setting up stop-loss means minimizing the losses
and having capital available to trade for another
day.

 This is a general trading rule that every trader
should stick to, and it's one of the top Forex
trading rules.
 A stop-loss:
1. Sets a limit at which your losing position will be
stopped.
2. Deciding on how many pips you can afford to
lose.

4. Keep Your Emotions Aside
 Forex trading can be exciting and stressful both
at the same time depending on profits or losses.
 As a result, controlling the emotions is one of the
essential Forex rules to live by.
 There is no room for mistakes in the Forex market
once you have lost money, there is no undoing it.

1. Don't think you can focus only on trading during
a session, and you should not be trading
2. If you are not in a good mood, take a break from
trading and return when you are feeling good.
 Trading when you are too excited can be as
detrimental.

 We all know how easy it is to make decisions
without thinking clearly.
 Trading is a manual activity, which needs to be
done with the highest level of discipline.

5. Always Do Analysis
 Your trading history is the source of your knowledge.
 Get the maximum benefit from this, by exploring what
you have done in the past and analyzing how the
market behaved at this time.
 Establish these review sessions on a daily or weekly
basis and assess how you can improve your trading
strategy.
 Learning from others is great but First, try to learn
from your own mistakes and successes.

 Don't focus only on the losing trades sometimes
analyzing profitable trades can be even more
beneficial.
 And if you have been making losing trades:
1. If you learn from your mistakes
2. You have gained valuable knowledge and
experience to adjust your strategy.

6. Adapt Quickly
 Market behaviour tends to change.
 So it's vital to modify the trading strategy and
adapt quickly, by consistently adding new items to
it.
 The scope of the Forex market is huge, and so is
the scope of the items you can learn about it.
 Don't think that if your current trading strategy
works, it will work over a long period.

 Successful Forex trading requires you to follow rules
of currency trading including:
1. Correct Implementation
2. Analyzing
3. Learning.
 Learning and adapting from trades, should be a
repetitive process.
 If you stop learning and analyzing, then you stop
growing as a trader.

Thank You