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.