Free Forex Guide Part 8

Successful Trading Tips

There is no doubt that trading requires more than a few quick tips for success. You need experience, fortitude, capital and, above all, a solid trading system.

However, for the average beginner and those who perhaps are losing their focus because of significant draw-downs, keeping things simple can help to introduce much needed focus into your trading.

To that end, here are some tips that you can use for trading that can help you get a handle on these exciting markets.

1. Never add to a position that is losing.
2. Always determine a stop and a profit objective before you start entering a trade. Place stops that are based on market information, and not your account balance. If a "proper" stop is too expensive, it isn’t worth it to make the trade.
3. Remember the power of a position. You should never make a market judgment when you have a position.
4. Your decision to exit a trade means that you are able to perceive changing circumstances. You shouldn’t think you can pick a price, exit at the market.
5. In a Bull market, you never want to sell a dull market, in Bear market, you should certainly never buy a dull market.
6. There are times, due to a lack of liquidity, or excessive volatility, when you should not trade at all.
7. Trading systems that work in an up market may not work in a down market. It is good to know this and remember it.
8. There are at least three types of markets like up trending, range bound, and down trading, and you should have a different trading strategy for each.
9. Up market and down market patterns are ALWAYS there, and it is only that one is always more dominant. In an up market, for example, it is very easy to take sell signal after sell signal, only to be stopped repeatedly. Select trades that move along with the trend.
10. A buy signal that fails is really just a sell signal. A sell signal that fails is a buy signal.
11. It's always easier to enter a losing trade.
12. During the blowout stage of the market, up or down, the risk managers are usually issuing margin call position liquidation orders. They don't generally check the screen for overbought or oversold; they just keep issuing liquidation orders. It is best to make sure that you don't stand in the way.
13. It’s good to be superstitious; in that you shouldn’t trade if something bothers you.
14. Buy the news that you hear, sell the factual news.
15. News is only important when the market doesn't react in the direction of the news.
16. It helps for you to read today's paper tomorrow. When you read yesterday's paper each day with the knowledge of what the market already did, it will remind you that what happened yesterday has nothing to do with what will happen today.
17. You should never enter a new trade in the direction of a gap. Never let the market make you make a trade. 
18. The first and last tick are always the most expensive. Get in late and out early.
19. When everyone else is in, it's time for you to get out.
20. Never trade when you are sick.
21. You should only change your unit of trading under a plan of attained goals. You should also have a plan for reducing size when your trading is cold or market volume is down.

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