1. Be careful with the leverage
You must be very careful with the use of leverage. It is a double-edged tool.
You’ll always be very tempted to take large positions to earn a lot of money but are you really careful when you use your leverage?
Generally, no. And do not make mistakes, a beginner should never exceed a leverage of 10, and a seasoned trader should be limited to 50.
You will often tend to think that earnings at a position.
Remember that if you can win € 8000 for example by taking a position on the market, you can also quickly disappear in smoke.
A good advice: try to take a small position and the double if you’re in the right trend.
2. Place your order “stop loss”
It is important to always protect their capital with an order called “stop loss” ( “cut losses”).
You should never take a position without stop loss, even if you’re at your computer to monitor progress. A rider must use a helmet to protect his life, you must use the same as a stop loss to protect your capital.
Before you can win, learn to not lose.
Another good tip, place your stop loss before confirming your order.
3. Establish a trading plan.
Before embarking on the Forex, you must establish a trading plan.
Thus, in each situation, you know how to act because you’ve thought before.
There is nothing worse than taking a decision in the heat of the action. The trading plan is like your business plan.
A businessman would have idea of establishing a business without a business plan in advance?
4. Strictly follow your trading plan
Establish a trading plan and keep to it faithfully.
This is not because you hear of a new indicator that will miraculously change your plan. You often hear talk of new martingales to win without losing.
Follow your plan and forget sellers dream!
5 – The size of the positions
Many traders always take positions on a fixed amount. It’s a big mistake.
You must enter into a sum of money on the forex market based, and your capital, not according to your desires.
6. Use appropriate methods
Do not try to revolutionize the world of trading. Better to use an old method that has proved its worth in recent decades, rather than seek a new system that would save much more.
It’s in the old pots qu’on fait les meilleures confitures.
7. Keep control of your emotions
You should not leave you overwhelmed by your emotions, but you do not ignore them.
Managing emotions is one of the keys to success for a trader.
8. Have confidence in your decision
Many traders do not make market analysis and have no opinion. They only read the reports and analysis published by professionals.
Is this the right way to learn trading?
No, of course. And following the advice of others, you’re vulnerable because you can not detect their mistakes. Trust your reasoning.
9. Trade with money you do not immediately need
Wherever possible, you must trader with money you do not need to live. First, because it is not impossible that you can lose and, secondly, because in Trade with the money you need to live, you can not properly manage your emotions. Your emotions take over your rational thinking.
10. Make trading by passion
The motivations are important, and if you start trading in Forex with the wrong motives (want to be rich, want to be famous, work at home …), you may soon be disappointed by trading. You will then higher risks to achieve your goals ill. Trading, like many other activities, must be a passion.