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Tips For Successful Trading

 

Without a doubt, trading needs more than a few quick tips for it to be successful. You need fortitude, experience, capital and, above all, a firm trading system.

Nevertheless, for the average beginner and those who might be losing their concentration due to significant draw-downs, keeping things simple can always be helpful in order to introduce much needed focus into your trading method.

For this purpose, below are a few tips that you can make use of for trading which can help you get a grip on these stimulating markets:

1. Never add to a position that is not winning.

2. Always try to define a stop and a profit target before you begin entering a trade. Place stops which are based on market information, and not on your account balance. If a "proper" stop is too costly, it is not worth making a trade for it.

3. Don’t forget the power of a position. When you have a position, you shouldn’t make a market judgment.

4. Your decision to leave a trade means that you are able to perceive changing situations. You mustn’t think that you can pick a price, exit at the market.
 

5. In a Bull market, you must never sell a dull market, and in a Bear market, you must absolutely never buy a dull market.

6. Sometimes, due to a lack of liquidity, or excessive volatility, you must remember that you shouldn’t trade at all.

7. Trading systems that work in an up market might not function in a down market. Don’t forget that.

8. There is a minimum of three types of markets. They include up trending, range bound, and down trading, and for each market, your trading strategy must be different.

9. Up and down market patterns are always there, and only one can dominate the other. For example, in an up market, it is so easy to take sell signal after sell signal, only to be stopped time and time again. Try to choose trades which move along with the trend.

10. A buy signal that falls short is really just a sell signal. A sell signal that doesn’t succeed is a buy signal.

Click here for the next step : Forex Trading Guide

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