Rules For Trading Forex With Peace of Mind

By Ogbonnaya Eme

I have come to the realization that in order to trade and become consistently better in your decisions as a trader there are rules you must consistently follow. This rules ensures you don't enter a buy when you should a sell and you don't enter a sell when you should a buy and that even if you do to learn to exit a trade when its going against your trading system.

Remember, you cannot predict the market!!!.

Listed below is a list of trading rules I have been writing down as I trade the forex market.

1. Ensure to have confidence in yourself.

2. Before entering any trade, you must ensure the knowledge of your pivot, supports and resistance.

3. You must ensure that when your transaction gains to ensure your stop loss is holed to your break level.

4. You must not be too kin on entering any trade again once your Take profit is not reached.

5. As a beginner, you must ensure you stick to your take profit in spite of the gains you must want to take from the market.

6. Immediately after the formation of a hammer in a downtrend, You should look for the nearest bearish sign of the trade and enter a buy.

7. You must not stick so long on a losing trade, except you are conversant with the pair being traded and understand the nature of fundamentals(news) to its trend.

8. You should endeavor to follow the trend.

9. The formation of a doji after a hammer signifies trend continuation, so you should expect to look for a position to that effect.

10. When entering in line with the trend, you should not expect to take profit quickly as there maybe more move from the pair resulting in more ash flow.

11. When a swing high occurs in a pair up to a point and retraces, you may fix your sell limit for its next move at the same swing high point in case it reverses.

12. Never bail out on your trading system except there is a reversal to what you earlier anticipated. As long as your trading signals are in place, remain firm with your trade until you achieve your aim.

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I'm just a startup guy with quite a load of experience and still counting