1.Â Â Â Â Â Know the difference between trading and investing.Â We are traders, NOT investors.Â â€¢â€¢Â Discipline is doing the right thing at the right timeâ€¦every time! Survival in this business is dependent on the right decisions.
2.Â Â Â Â Â Donâ€™t let losers run!Â Always use stops . Â Risk management is very, very important in your trading.Â Donâ€™t be stubborn in holding a position. Remember, while you may not be wrong often, The Market Is Always Right.Â The best traders are the first to admit (to themselves and the market) that they made a mistake.
Â 3.Â Â Â Â Â Trade only price pattern set-ups.
Â 4.Â Â Â Â Â Trade for skill, NOT the money.Â If youâ€™re focused on the money aspect of tradingâ€¦youâ€™re not focused on the â€˜tradeâ€™.Â And SCARED MONEY NEVER WINS!
5.Â Â Â Â Â Concentrate on what you are trade.Â Each market has personalities, habits and friendsâ€¦get to know them all.
Â 6.Â Â Â Â Â Focus on your executions.Â Remember, every execution is a trade.Â Money is valuableâ€¦donâ€™t leave it on the table.
Â 7.Â Â Â Â Â Model Yourself After Successful and Experienced Traders.Â You will be all you can beâ€¦but you need to start somewhere.Â
Â 8.Â Â Â Â Â Be Teachable.Â Learn something new every day (or at least every week).Â The â€˜Losingâ€™ and â€˜Winningâ€™ trades can teach you a whole lot.
Â 9.Â Â Â Â Â Remember that even the best of the best traders lose money.Â Learn to accept your losses and move on to the next trade.Â Thatâ€™s just part of the business â€“ you will NEVER win 100% of the time.
Â 10.Â Use only 1 contract at the beginning.Â Large wins at the beginning generally means large exposure.
Â 11.Â When in Doubt, Get Out (or Stay Out)!!Â Deal with reality, if the market doesnâ€™t behave like you expected, Get Out Immediately!
Â 12.Â Learn the difference between gambling and trading: (1) Donâ€™t trade just becauseÂ itâ€™s irrationally high or low, (2) no positions before major market announcements, (3) always use a protective stops, Â and (4) always have a high probability trade set-up before putting on a trade.
Â 13.Â Never, ever add to losing trades.
Â 14.Â Donâ€™tâ€™ overtrade.Â Trade more only as you get more experience and only if youâ€™re Winning.Â Not the Opposite.
Â 15.Â Be Logical, NOT Emotional.Â Emotions can help destroy you as a trader â€“ be very logical and follow your trading rules.
Â 16.Â Exercise Patience.Â Do not force trades when there are none.
Â 17.Â Exercise Diligence.Â Â Do your homework and preparation before each and every trade.Â Be willing to let time do its work.Â Hard work is required in this business.
Â 18.Â Anticipate, identify and take full advantage of momentum in the market.
Â 19.Â Always select realistic entry and exit points and write them down.Â This goes hand in hand with doing your homework and preparation before each and every trade.
20. Maintain a list of your current open currency trades, monitor them closely, and try to limit them to 1-2 LONG trades and 1-2 SHORT trades (if thatâ€™s you comfort level).