Forex rules for beginers
Forex traders are prohibited to use daily living fund as trading margin
It is prohibited to use daily living fund as trading margin, the fund pressure could mislead a Forex trader's investment strategy this will increase the trading risk, which will cause an even bigger mistake.
Forex traders should use the free demo account to study Forex trading
Beginners must patiently study and not eagerly draws up the real Forex trading account. Beginner Forex traders may first test the demo account, in the demo Forex trading study process, the essential target is to develop individual Forex trading strategy with condition, when the probability of making profit enhances day by day, this indicate that a beginner Forex trader might draw up the real Forex trading account to carry on the Forex trading. But please use the real psychological way while doing demo Forex trading, the faster you enter the condition, the more faster that you may develop a suitable method to do the real Forex trading.
Forex trading cannot only depend on luck and intuitionIf a Forex trader does not have the fixed trading method, then the possibly of making profit is stochastic, namely depends on luck. Such profit making will not last long. In other words, there will always be loss if there is no luck. Intuition in Forex trading is very important, but it is very risky to do trading just depending on the intuition, the most important thing is to understand the reason behind the profit taking and to develop your individual Forex trading technique.
Use stop loss to reduce risk
In Forex trading, Forex trader must be able to afford taking loss, using the stop loss will prevent any further loss, the affordable loss depends on the account available margin situation. If there is a stop loss, Forex traders should not feel upset because he or she has prevented the loss from getting worse.
Act according to own ability
It depends on the margin in the account to decide the trading volume. Generally, all combine trading position should not surpass 10% the account margin based on this rule. It is not wise to over trade, is very easy to have the loss out of control.
The account margin must be sufficient
The lesser the trading margin, the risk will become bigger, therefore must avoid letting the account margin left only suffice 50 undulations levels, such account amount does not allow any mistake to happen, but, even a well-experienced Forex trader could also make mistakes.
Mistakes are unavoidable, but learn from mistakes and do not repeat it
Mistakes are unavoidable, please do not blame yourself, the important thing is to learn from mistakes, avoid making the similar mistake again, the faster you learn to accept loss and remembers the lesson, the days of profit making will be much more closer. Moreover, must learn to control emotion do not be proud after making profit, also do not feel depress after losing money. During Forex trading, the lesser the emotion, the more clearer you can see the market and make the right decision. Forex traders must face the reality calmly, Forex traders must understand that they will not learn from profit taking but they will only learn from loss. After understanding the reason behind every loss, this means that you are approaching the profit making path, because you had found the correct direction.
Oneself is the biggest enemy
The biggest enemy of a Forex trader is oneself - greedy, irritable, the out of control mood, and so on, is very easy to let you neglect the market trend which causes the wrong trading decision. Do not do trading because of bored or it has been a long time of none trading, there is no specific rule saying that a Forex trader must do how many tradings within a period of time.
Record the trading details
Record all the trading details, whether there is certain news or other reasons that influence you to trade, after the trade record and analyze the result of the profit and loss. If the result of the trading is profitable, this indicates that your analysis is correctly, when such similar situation appear again, your trading records will be helpful for you to rapidly makes the correct trading decision; wherelse the loss trading record will help you from making the same mistake again. Forex traders could not remember the history of every trading, therefore record is helpful in enhancing your Forex trading skill and also to look for mistakes.
Follow the trend, never against the trend
Remember the Forex market ancient general rule: Settle the position when it starts to loss, put as long as possible when it is profit making. Another important rules is do not let loss happen when it is making profit, when there is reverse trend in the market, it is better to make profit during the profit making situation then to settle position at the non-profitable situation.
Do not eagerly enter the Forex market after making loss
During the loss situation, do not eagerly open a new reverse market position in order to recoup from loss, this will only cause the situation to become worse. Only when you have agreed that your anticipation and decision in the past was completely wrong, then only you settle the old position and start a new reverse market position. Do not play with the Forex market through guessing, it is better to loss the opportunity then losing money.
