Terms and conditions that I observe when trading Forex
In the process of forming my trade experience, I became aware of the most diverse truths that I raised to the rank of axioms. These are the rules, dogmas and conditions that I invariably abide by and urge other, less experienced traders to abide by.
1. Put stops. Invariably always. Unless your goal is to tweak the market for 1-2 points (but I don’t think this is trade). Whatever your goals in the market, no matter how huge your deposit may be, always put stops. There are different situations on the market, and even if you are firmly convinced of the profitability of your position, there are always force majeure, making any deposits on margin stake. Similar examples are common to everyone.
2. The famous trading proverb: "If everyone thinks that the price will rise, the price will not rise." Pay attention to the opinions and the number of people following them. And never consider that the majority cannot be mistaken. Most always make mistakes. But this does not mean that you need to blindly drag against the crowd. Any position must be approached carefully. But at the same time take into account the factor of "majority".
3. There will be a day - there will be food. The old operator advises the following: if you get a loss, leave the tool for a while. For the estimated period. Day, week, month. Depending on who you are, an intraday trader or medium term. As a rule, if you missed a search for a reversal and climbed up against an existing trend - believe me, this trend will not unfold soon, and you should not climb with new attempts in search of a reversal.
4. Prefer the old to the new. This principle applies to technical means of market analysis. If you trade using indicators, then prefer the standard set of your terminal. Look skeptically at the self-made, invitingly flickering bright lights on the terminal. Such indicators will not bring to good. Everything that has been tested by time and makes a profit is in everyone’s hands (a standard set of terminal), just not everyone knows how to use it.
5. Never be an average. This rule did not exist if all traders would put stops. But, unfortunately, or fortunately for something, not everyone likes feet. I walked a lot along the branches of this forum, saw screenshots of hopeless positions averaged to the utmost. I saw live traders who averaged, saw their nervousness and misunderstanding "Why I can’t reverse the market! Here is my grid of orders, I’m ready to make a profit with a shovel!" But this is a reference to the second principle. Most people think so. That the market is about to turn around. And the trend continues due to their open positions.
6. Never think that the market owes you something. Never think like that. Never say “The price should be there,” or “The trend should reverse.” This is an empty concussion. The financial market is the most spontaneous thing of all, you can not impose your Wishlist on it. As soon as you stop demanding something from the market, you will start earning.