Forex Overview

  1. Do not overtrade
    • Trade within your means
    • Use 1/3 of your total margin only
  2. Always use protective stops to limit losses
    • Go in with a plan
    • Don't trade impulsively
    • Have predetermined risk as well as profit
    • Don't move stops higher or lower and say "It'll come back."
  3. Diversify your portfolio
    • Try to avoid "Loading up" in any one commodity or product
  4. Keep emotions in tact
    • Don't make trading decisions based on "Fear and Greed", as hard as this may be
    • Make decisions away from the market - "Don't be a screen watcher"
    • Don't let ego get in the way
  5. Trade in the direction of the immediate trend
    • Don't try to pick bottoms or tops
  6. Don't add to losing positions - get out!
    • Don't Average "Down" or "Up"
  7. Keep it simple, more complicated is not always better
    • Trade within your understanding of the markets
  8. Employ approximately a 3 t1 reward to risk ratio
    • Don't ever risk $2 to make $1
  9. Always be a student and keep learning
  10. Above all, be disciplined
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