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Trading Tips: Part Four |
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1. Only trade with a strategy you yourself have proven.
2. When adding positions, a/k/a pyramiding, remember that each successive layer should be smaller than the one before; only add to winning positions; never add to a losing position; adjust protective stops to the breakeven point.
3. Never risk more than 3-4 percent of your capital on any trade.
4. Predetermine your exit point before you get into a trade.
5. If you lose a certain predetermined amount of your starting capital, stop trading, analyze what went wrong, and wait until you feel confident before you begin trading.
6. Don't trade money that you need to meet your bills. All this does is lead to disaster. Remember: trading is about taking reasonable risks in order to achieve a decent reward, and the markets are under no one's control. If your business and personal expenses are not covered by separate income stream or cash reserves, DO NOT TRADE.
7. Understand why you are in the market. Is it to make money? Are you trying to relieve boredom? Do you need to feel like you are in control of some aspect of your life? Once you come to understand your primary motivation, you are on your way to successful forex trading.
8. Never meet a margin call. It's just throwing good money after bad.
9. Close out your losing positions before the winning ones.
10. Except for extremely short term trading, it is better to make your decisions after the markets have closed.
11. Work from the long term to the short term, not the other way around.
12. Use intraday charts to fine-tune entry and exit strategies.
13. Master interday trading with demos and tests before actually trying intraday trading.
14. Trade the pattern, not the time frame. Remember: reversal patterns, hesitation patterns and breakout patterns frequently appear, so learn to look for the pattern in any time frame.
15. Don't take anything said in the financial media too seriously. Remember: everyone is always trying to sell you something for their own advantage.
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| Symbol |
Rate |
| GBP:CHF |
2.007608 |
| GBP:JPY |
182.222212 |
| GBP:USD |
1.757198 |
| NZD:USD |
0.658397 |
| EUR:CAD |
1.503413 |
| EUR:CHF |
1.557680 |
| EUR:GBP |
0.775889 |
| EUR:JPY |
141.384148 |
| EUR:USD |
1.363390 |
| AUD:JPY |
80.415028 |
| AUD:USD |
0.775455 |
| USD:CAD |
1.102702 |
| USD:CHF |
1.142505 |
| USD:JPY |
103.700427 |
| USD:SEK |
7.185028 |
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Disclimer: This website is for informational purposes only and is not intended to provide
specific commercial, financial, investment, accounting, tax, or legal advice.
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© ForexCenter.com, 2005, All Rights Reserved
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