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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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