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In
this section we
will be putting
forward the few
important rules
that should never
be broken when
trading. If you
can apply all
these rules in a
consistent manner
and with the
proper amount of
discipline, you’ll
be well on the way
to becoming a
profitable
trader.
Below
are some rules
which can
considerably
advance your
chances of success
if they are
understood,
practiced, and
implemented
properly and in a
consistent manner
in your trading.
These rules have
really been
learned through
experience,
trial-and-error,
and inevitable
mistakes that
everyone makes
when they begin in
the trading
business.
Setting up and
Implementing specific
FOREX objectives and
goals
Nothing
is more important to
the success of your
trading than setting
some specific goals and
objectives for what you
try to achieve. A lot
of people find it
amazing how often they
hit our targets in the
best way when they
speak aloud and write
them down.
For
the success of any
business it is
important to have some
measurable objectives
that you are actually
able to achieve. When
you trade, the first
objective is to make
money of course, but
you should also have
some other non
cash-related objectives
for your business to
thrive.
You
must never forget that
risk and reward go
hand-in-hand in trading
and that we cannot
expect to achieve high
returns without
planning for high risk
draw-downs.
Your
goals and objectives
must be very precise to
you, but they must also
comprise the following
elements if you want
them to be
useful:
• Be
measurable in
compliance to
completion and the
timeframe which are
involved
• Be
realistic in the goals
that you wish to
achieve
•
Make your endeavours
worth the time and
effort
involved
•
Always be
positive
As a
case in point, here are
some real objectives -
partial
list:
• Try
to come up with 2 new
positive-expectancy
trading systems every
year.
•
Every year, try to make
fewer errors when
implementing your
trading
systems.
•
Work to attain a return
to a maximum draw-down
ratio of
1.5:1
•
Every year, try to take
2 weeks vacation from
trading.
You
should also bear in
mind that only one of
them should be about
making money, and that
has a measurable
objective that is quite
similar to a draw-down,
and is not guaranteed.
If you know what you
want from your trading,
and when you are trying
to achieve it, all your
efforts will be more
focused on achieving
your goal.
This
will also help to guide
you to only take notice
of things you really
want to achieve with
your available time and
resources. This can
also be a way for you
to effectively measure
the success and
progress of your
trading
strategy.
Generally,
a trader who has an
objective which is
well-defined, will be a
lot more successful
than a trader that
doesn’t have a
pre-defined
goal.
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