Tag Archives: Rules

General Business

3 Day Trading Rules You Should Never Break

Day trading is an addiction. It works like a drug. Both the success (profit) and failure (loss) in it results in more and more trading until it reaches to investor’s bankruptcy or to investor’s psychological imbalance. This could be saved if an investor follows 3 day trading rules given below. By following these trading rules you can make much money from day trading than you previously made following a hit-or-miss path.

3 unbreakable day trading rules

Trading rule 1: Stick to your plan, no matter what

Earning a lot of money every day before the closing bell rings could be the central idea, but it cannot be a plan, from any stretch of imagination. It can never pass for a plan. If this is all one got, the situation is not very bright. The sun will soon set in the horizon leaving a bitch-black darkeness behind.

It is, therefore, advised to have a proper plan for your day trading activities. And once a plan and the strategy to meet the goal set in the plan is created and tested, stick to it. Follow it to the dressing room, for even the best of the strategies, if not backed, will not succeed.

The worst thing a day trader could do to himself and his plan is to switch strategy at the drop of a hat.

Trading rule 2: Shun greed and be a nobleman

If you scan through the history of people losing money in day trading then you will see pages and pages of history littered with the stories of excessive greed. Greed, if controlled, could be a proponent of growth, but when left untamed, it brings disaster for its master.

Do not wait till the last minute for the bell to toll before you can surrender the winning hand. Sell it much earlier and remain satisfied with the profit you make, or even the loss you incurred.

Trading rule 3: Never be afraid of loss, it doesn’t matter

If day trading is a gamble, letting go of the bad cards dealt to you is the key to the pot. Many day traders are afraid of loss because of which they do not keep their minds and eyes open to see the bad trade they have done. At the end, they stick to a bad trade for long, which results in more loss.

The winner in the game of day trading is the one who knows when to hold it and when to fold it (surrender), so that the gain could be maximized and loss could be minimized. Keeping the losses small, in a sense, is saving money which didn’t flow through like sand from the clenched fist.

If you want to make real money in day trading then you should follow the day trading rules laid above. Breaking any of the day trading rules may push you away from your goal. Keep your goal in mind and follow the trading rules set above.

Forex Trading Articles

Begin Day Trading – Nine Rules to Keep You On The Right Track

Start day trading and you will be able to earn dollars while sitting at home. Starting your own business can be so liberating after being locked in an office at the mercy of a boss. One lucrative option for earning money is foreign exchange day trading, which you can do in the comfort of your own home and on your own time.

For training there are several websites available that can provide you a free demo of the original forex market, it also covers the necessary topics of analyzing the forex market, the basic concepts and how to avoid risk that is associated with forex day trading.

As you need to become a successful day trader here are some tips:

Earning thorough knowledge is a must:

You will come across people who are smart and good at number crunching just like any other business. You have to prove yourself and show them that you can act as a strong opponent for them. So continuously update your knowledge.

Start small.

To enter in this business first start with small trades or the trades for which results are known to some extent. Though you can trade with just a small amount of money, you have to bear in mind that trading small also means earning very little.

Come up with a plan before you start online trading.

As you experience actual day trading, you have to make your observations and learn how other successful traders win. A good trader is always learn from others mistakes and them avoid that mistakes. This is a golden rule in forex.

Learn from your mistakes:

A person who learn form his own mistakes will never repeat such mistakes in the future because to beat your own performance is the actual definition of success.

Plan for Long-term

It’s always the best policy to think long term when you are trading and it’s also the mark of a good trader. Do not go for short term profits when your judgment tells you that things in long term will be better.

It Is All About Timing!

Always remember that time is a major player in trading. New developments in the market always start after the morning news is out, as credit policy changes by central banks and world business news influences the choices of investor’s world over.

Trading in peak hours is not good you must avoid it because in peak hours market is touching a extreme and extreme is always bad. Trading all the time in the working days of week is also discouraged. Plan a time for your trade and try to handle the stress.

Ideal time to trade:

The market players always trade in the first hour of opening a market. Some traders will simply enter a short trade as soon as a bearish market opens, or a long trade in a bullish market, but a more technically sound forex market opening trading strategy is to use pivot points to identify the new day’s support and resistance levels and set take profit and stop loss targets at those levels.

Expertise needed to analyze charts

Stay connected with the latest happenings in the forex market but don’t get lost in data. Analyze the logic behind every transaction and try to concentrate on the cause and effect cycle in the forex market. Always get proper and thorough knowledge about the currency market also considers the factors which can affect the function of forex market.

Always try to find logic behind the fluctuations in rates and try to concentrate on the factors which are responsible for this. If you get your fundamental theory of forex trading right and stick to the basics, things will more often turn out right.

Make it simple and Be a Man!

Keep your procedure simple and remember, you cannot control all the variables.

Be brave if you want to become a good trader always be ready for difficulties because a calm sea cannot make good sailors. Forex trading is not for people who have a weak heart, always stay for your decision and go for the kill, if you are seeing a charm in the selling, act like a winner and don’t hesitate to sell.

Summary:

Forex day trading can seem like a profitable and exciting profession to excel, the prerequisites for success are motivation, intuition and most important a big heart while keeping every thing simple. Hope that the tips provided by the experts about the day trading will help you in all aspect and guide you in achieving success in this career and you too become one.

General Forex

Forex Trading For A Living – 6 Cardinal Rules To Sustain Your Forex Trading Career

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Learning how to trade forex successfully and being a full time forex trader is a lot more than analyzing forex charts, then jumping in on your forex investment. There are plenty of currency traders that are successful for a short period of time and then fall apart and lose their edge.

As a professional and full time forex trader myself, I’ll like to share the 6 cardinal rules as a personal advice to help you sustain your career as a full time forex trader.

1. Don’t forget to check your economic calendar

It sounds like something that should be obvious, but you would be surprised at the number of currency traders who forget to simply check the economic calendar each and every morning to make sure that they don’t miss out economic data releases. If you want to avoid a situation where you spend all day trying to find a good investment opportunity and then have it fall by the wayside because of this, go to a site like the Forex Factory each and every day before you jump into the action.

2. Use economic forums to your advantage

When you are trading, forex forums can serve two purposes for you. First, they’re going to provide you with a productive way take a break during slow periods of business. The life of a full time trader can be very boring. Second, you’re going to have a way to discuss forex trading intelligently with other like-minded individuals as you’re rarely going to be in a situation where someone else in your household could even care what you are talking about.

3. Enjoy your life

After spending all day in a high paced environment and staring on the monitors while you’re doing forex trading online, you need to get out and interact with some human beings again. Crunching numbers all day and being exposed to the level of stress you’re going to have in the forex market demands a little release. Make some time to get out and enjoy yourself and you won’t regret it.

4. Don’t allow yourself to get lazy

If you are successful currency trader or just learning to trade forex, one of the best forex tips I can give you abouts something other than forex is to not fall into the trap of getting sedentary and spending all your time worrying about the forex market. In order to keep your body in shape and your mind fresh, you’re going to have to get your fair share of exercise. This is not a job is going to create a lot of movement. You be sitting down all day at a computer and exercise will help in keeping you sharp.

5. Get off your computer a couple of times a day

You are going to learn very quickly that the more you sit at your computer, the less focused you become. This is extremely dangerous in the forex trading. There is nothing wrong with treating yourself to a quick 15 minute break so you can go out and get some fresh air a couple times a day. It’s a quick way to recharge your batteries and regain your focus to take a successful trade.

6. You work hard for that money, now make it work for you

Forex trading is not the only place where your money can grow. Once you have established yourself as a successful trader, pull some of that money out and put it to work in other areas. You may decide to buy some investment properties or dive into a separate market and allow your money to grow in other ways. It also serves to diversify your portfolio.