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Experience no more losses – 4 rules to avoid losses

In every game, there are basic rules to learn.

And those rules should become a part of you to emerge as a winner.

Exhibiting super skills is different.

But, in adverse situations, you have to stick to the basics.

It helps you save the game.

And you would become the winner, eventually.

In forex trading also, there are basic rules to learn.

Read further and know the four rules.

To keep your forex trading alive forever.

Rule 1: Analyze the market thoroughly

Forex market is highly volatile and can cause heavy losses, anytime.

Make use of the right analysis tools and avoid losses.

Use technical analysis and find the right trading points.

Similarly, use fundamental analysis.

And know the overall strength of the market.

Armed with the analysis, form an effective trading strategy.

Rule 2: Form a trading plan

You should have a proper trading plan that suits you.

It suits your personality i.e) the type of trading you opt for.

For day trading, you would have a strategy to trade on lower time frames.

But for position trading, you would prefer higher time frames.

And you should have your trading system backtested.

Before, you use it in live trading.

Rule 3: Devise a perfect risk management plan

It is the most important thing in forex trading.

As a poor risk management plan would spoil your trading.

It could spoil you, even if you have won 90% of your tradings.

Limiting your risk to 1-2% of capital is advisable.

It saves your emotional drain.

And you can easily wait for the next trade.

Rule 4: Adopt the right discipline in trading

In trading, discipline is the key to success.

Follow a strict discipline plan even after commendable success.

List your trading rules and maintain a trading journal.

It helps you to track your entry and exit points.

On the weekends, you can analyze your journal.

Find your mistakes and rectify them.

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