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Do’s and Dont’s

There are many things good and bad when it comes to Forex trading or trading in general, from the actions you should never take to very important things that could completely change your success rate. We have detailed below some ‘do’s and dont’s’ of Forex trading that we feel are important enough to stress to you. They do not have to be followed, but we hope they bring value to you, even if it opens up your mind to create new ideas!

Dos

Carry out ‘top-down analysis’ covering all time frames from the monthly to the hourly, this will give you a fantastic understanding of the bigger picture in terms of a trend when looking at a specific asset

Create a trading plan and STICK TO IT

You will lose money at some point in your trading activity, so prepare for it. Do not get stressed seeing red numbers, if you have traded your plan then let it play out

Ensure correct risk management is in place, that way you know how much capital is at stake before you enter any trade

Master one strategy at a time, flicking between various strategies can cause confusion and affect your trading in a negative way

If you take a loss, step away from the computer and take a breather. Refresh your mind and get back to analysing where you went wrong

Donts

Analysing too much can put your mind into a state of ‘analysis paralysis’. Take a break when analysing to ensure you keep a clear mind

Do not revenge trade when you have had loses. Chasing profits after taking a loss will most likely end in you losing even more capital

Emotions play a huge part in trading, if you want to become consistent then leave them all at the door!

Cluttered charts mean a cluttered mind, keep your charts clean and simple to provide the best possible picture

Rumours are rumours, do not let them affect the decisions you make with your own analysis

You have a trading plan and strategy, do not veer away from this and cause yourself added stress from erratic decisions