Trading forex can be a very profitable profession and to thousands of people it is... yet there is 10x or even 1000x more people who lose and there are good reasons for that.
One of them being... they are random and have no specific approach to trading rather... their charts are full of indicators and look like a vegetarian pizza.
If you read any books of successful traders, read blog posts or watch videos/interviews... you will find a common example of keeping things simple.
In this article I want to share with you 6 points which have significantly helped me to improve my trading and I will leave you with 3 more bonus tips which I added recently.
The following is stuck right in front of me on my trading station... and is listed on my wall.
1. RIDE YOUR WINNERS
This is pretty self explanatory but most of us traders don't always follow through... and that is because of the FEAR we have that price action will reverse on us so we take smaller profits... but this is a problem.
We should replace the emotions of point 1 and point 2 and I explain how to do this in my course which I am giving out for free to anyone who deposits $500+ with any of my partner brokers.
The road to riches is built on ROI... and the only way to have good ROI is to Ride Your Winners.
2. CUT YOUR LOSERS
Most traders have HOPE when they are losing that the market will turn around... and for that reason they have no stop loss and usually take very big losses...
The trick is, as I explained above, to switch the two emotions... have FEAR when you are losing... - this will make you to cut your losers quicker and smaller.
On the other side, have HOPE when you are winning and try to squeeze more pips out of your trade.
This won't always work... but it will have a BIG impact on your ROI!
3. MANAGE RISKS
The basic argument here is that you can have an amazing trading system but without good risk management you are going to go broke.
Risk management is for those of us who want to trade profitable, the other guys and girls who are here for fun will never use it.
The question is, are you here to make money or have fun?
If you answered make money of-course... then start applying RISK MANAGEMENT NOW!
4. USE STOP LOSSES
I won't spend this one this one much... look at it this way, you just have to be wrong once to go bust without a stop loss. - One time and you can lose everything.
Stop losses are like employees, you pay them a certain amount to PROTECT YOUR ACCOUNT so that you can live to fight (trade) another day!
5. FOLLOW THE SYSTEM
My best advice to you is to keep it simple and apply price action and remove as many indicators as you can.
My courses on udemy provide a lot of very valuable information on how I trade!
Right now I've got a promotion running, deposit $500+ with one of my partner brokers and I'll give you access to both courses for free but more importantly you'll get access to my signals room and a 5 day mentorship program with me!
6. IF TRADING THE NEWS, TRADE LIGHT
There is not better day to speak about this than today... after all it's the first Friday of November and the NFP will be released... a lot of people go bust on this trading day so I just want you to apply this rule... cut your trade size by 50% and even 75% if you can.
- Remember, I'll be live in my trading room for the NFP! I would love to see you there! Join us for free!
Thats it for the initial 6 points, now let me go over the 3 bonus points I added below them a couple of months ago.
1. ONE TRADE AT A TIME
Now this little rule has seriously improve my trading... I started entering only quality setups, I started losing less and making more... it's a MIRACLE of a rule and you should apply it!
2. FULLY ANALYZE CHART
As you can see above I don't say charts, I say chart (without an 's'). When you are ready to enter a trade... review the chart fully.
Check both the upside and the downside potential, map out all key trading levels and do all necessary analysis before you enter the trade.
3. ALWAYS DO RISK MANAGEMENT
We spoke about this above a little, but the main idea behind point number 3 is to always find a definite exit area before entering trade and never risk more than X%... the % I cant decide for you, that is up to you to decide... for me it's 7.5%.
Thats all I've for you today...
I do want to remind you that today 15 minutes prior to the release of the NFP I will go live in my trading room, make sure you join it, its totally free!
Make sure you join, i'll blow your mind away and you might grab a few pips!