Rule 1 - planning and setting goals correctly
None of the novice traders come to Forex out of interest. Whoever says anything, but everyone has the same goal - to start earning and, in the long run, turn financial markets into a source of permanent income. Only the details and the scale of the desired earnings differ.
I will draw an analogy with travel, when there is no direct transport connection between the starting point and the destination. A traveler in such a situation plans a trip based on where he is leaving from and where he should arrive. The routes may differ, but the goal will eventually be achieved.
The same thing happens in trading:
- the starting point is a beginner with no trading experience;
- intermediate stages of the "journey" - intermediate goals. For example, trading for 3 months on a demo account with a plus, then trading for 3 months on a cent account, then on a standard account with a minimum lot;
- the result of this is the achievement of a predetermined goal. Someone just needs to reach an income of $ 1000- $ 2000, someone wants to become a PAMM manager, increasing their portfolio from month to month.
Setting intermediate goals on the path from beginner to pro
I recommend that everyone think right now about what you want from the financial markets and what intermediate goals you are highlighting.
Rule 2 - trade using the simplest possible trading system
Beginners remind children who like everything bright, spectacular. But on Forex, there is no connection between the effectiveness of the TS and the way it performs at work.
The dependence is rather the opposite - the more complex a trading strategy, the faster it will fail. Optimization, of course, has not been canceled, but who can guarantee that it will help? And how long after that the next breakdown will happen - in a day, in a week or in a month?
For comparison, I will give a general view of the chart marking according to the Sniper X strategy. There are no complicated and incomprehensible indicators, only the support and resistance zones are used, as well as chart behavior patterns around them.
This rule works not only in trading. The more complex the system, the more elements it contains, the lower the reliability.
Rule 3 - if you get confused, stop
There is no shame in the fact that you made a mistake and lost money. It is important to realize this in time and to pause, to work on the mistakes. Emotions are inappropriate here, do not try to show the market who is in charge here and, after losing a couple of trades, immediately recapture the losses.
The picture above shows a snippet of one of our students' pre-training report. The growth curve of the deposit and the size of the loss show why the market should be treated with respect and not trade when emotions are running high.
Rule 4 - trust your intuition
This phrase does not mean that you should rely solely on your sixth sense to enter. The point is that the decisive argument in making a decision is your opinion, and not the words of outside analysts.
This problem is especially common with newbies. They lack confidence in their abilities, so the opinion of analysts on specialized sites seems many times more significant.
Fuller recommends, and it's hard to disagree, prioritizing your own market analysis. You need to trade with your own mind, not relying on someone else's analysis.