When people start to trade the Forex Market with a beautiful plan there is still some small things you should know. I have tried to collect them all I have been smart enough to learn from. I would like you to add on the list so I and other traders can learn from them.
•Know when your Forex broker opens and closes for the week (if you have back tested to start on Monday 06:00 and the broker opens at 08:00 you have a problem). Anyway if this problem occurs, don’t trade! Putting on a random trade is not the solution for consistency.
•Know if there is any maintenance time on your Forex broker(rollover etc.)
•Make sure you know when your Forex broker is changing to and from daylight savings if this changes.
•Know when you are changing to and from daylight savings.
•Know when the Forex currency you are trading changes daylight savings.
•Know how all the entry and exit Forex orders work before starting (there is always a tutorial on each broker’s web-page).
•Never trade Forex when you have been drinking (it’s obvious I know but wait and see). This is not the place to be cool or revenge trade because of a drawdown earlier that week. It’s like buying more products you have no idea how to get rid off.
•Set a time you can trade in the Forex Market everyday (if you trade weekly, it’s even more important, if you miss a winning trade you will increase your draw-down massively).
•Make sure you have an internet connection that works. Many cafeterias and libraries don’t let most of the broker platform connections through because they run on a connection similar to downloading programs. Remember, if you are about to trade in the Forex market and you can’t because the internet is not working how would you feel? Even worse if that was a winning trade.
•Start out your Forex Trading with as little as 3-400 dollars, if or when you are consistent and turn that into 1000 dollars you are doing great. If you turn 400 into 5-6000 you can add more money if you want (not that I see a reason for it as the money you receive in Forex will quickly accumulate up to the amount you want to add, unless it is a lot).
•If you can’t be consistent in your Forex Trading don’t throw good money after bad. I promise you there is no point putting more money in than 2-300 dollars a time as with most traders you will blow several accounts trying different “smart” things. With 1:100 leverage and by risking 2% of 2-300 dollars a time it should be enough to learn how to trade Forex. Boring? Maybe, you’re better than paper trading.
•Set some profit goals in your Forex trading, when you reach 1200 dollars take out 200 and buy something to yourself or go to a nice restaurant with your lady. Feel that the money in your Forex account is hard cash and not just numbers.
•Never brag or talk about your Forex trading to your family or friends there is not a single thing that will come good out of it. You will only be placed in a threatening position which is the last you need as a trader (it is hard enough as it is) only talk too other traders about trading stuff. Join a forum for discussions and general talk. Remember this is a very big psychological game; you don't need extra load...
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