Good day forex traders.
Today is the first day of the new year. Happy New Year and may the year be excellent for you!
In this forex article, i am not going to do any forex forecast. Rather i would like to share some thoughts that i personally believe is crucial to ensure a high possibility for good forex trading in the new year.
- Never trade with money you cannot afford lose. For example if you have debts to clear, you should consider clearing those debts first. Forex trading is not a get rich fast method.
- Proper money management is a must. Make a bad trade with proper money management and you can learn and try again. Getting a margin call with a bad trade with no proper money management and that is the end of your forex trading.
- Never overstretch your winning position. If the market conditions seems to be indicating a reversal or stall, you are probably better off pocketing the winnings. Being green with 1 pip is better than being in the red.
- Never overextend your losing position. It ruins your proper money management, it ties up your funds and may be an opportunity cost.
- Being on the sidelines may be a wise choice at times. There is probably no need to trade constantly.
- Have a personal system of forex trading. Exploring and learning from others is good but understanding it and fitting it into your personal system is important. Simply following others may not be a wise choice.
- You need to understand the market that you are trading in. Forex is about hard work and research. Technical and fundamental conditions must be known and understood.
Now enhanced with our proprietary Price Action Bias Signals. We think you may be interested in these articles.