5 Golden Rules In Forex Trading With Market Navigator
I would like to address the 5 most important, golden rules in trading that you must always follow strictly. I have to repeat here, these are the 5 golden rules that you must always follow strictly if you want to be a profitable traders with market navigator. These rules seem to be simple and trivial but they play a crucial part in your trading success and just by knowing and applying them, you are already halfway to be a good trader.
#1 “Follow the system, limit your losses and you will succeed!”
I am going to make this first point very clear, because I strongly believe it is the most important factor to remember. In order to be a successful Forex trader, you must be willing to take your profits and not looking back. The #1 mistake I see currency traders make is to hang on a position for too long. They seem to think that this is the trade where they can get 100+ pips and just forget about what their system is telling them to do. The main reason trading systems are in place is to help growing your account steadily while limiting your losses. By controlling the amounts you are going to profit/lose, you will be a long-term winner by keeping control of your trading account. It’s really frustrating and sad to have a trader e-mail me and tell me he lost his whole account because he held on to a position for too long and ended up losing 50% of his money on the trade. So, grow steadily, consistently, safeguard your base first and then the profits will take care of themselves.
#2 “Plan your trades first, and then trade what your plan is telling you”
Next, you need to focus on planning your trades first, and then trading your plan. Your job as the trader is to follow a strict trading plan. Do you know who is going to write the trading plan? You are! After you write this plan, your job is just a breeze because all you have to do is follow the trading plan you have devised yourself. All you need to do is follow the rules of your trading plan which should have a setup, entry, and exit. If you are doing anything else, then you are simply complicating your job more than it needs to be.
#3 “Don’t trade more than you can afford”
It never ceases to amaze me how many traders want to invest their life savings into high risk investments. On any given day, any trade can go from good to bad in a matter of minutes. Do not trade more then you can lose! While systems, trends, and services are all made to help you improve your profits and keep you from losing, sometimes it is inevitable that you will have a bad day. I recommend trading in these terms, if your overall bankroll for trading is $50,000 then never invest more then 2-3% on any one trade. This would amount to a max of $1,500 per trade. Stick to your principles regarding money management and your system and you will do well in this business. Just imagine if you were to invest all your money on one trend one day. What if all of a sudden the trend took a steep downhill and you lost 50% of your total money on that trade? How would you feel after that? Not only would it take months to work your money back up, you would lose a lot of confidence in your trading ability.
#4 Don’t think of this in terms of cash, think of this in terms of pips”
One of my first advices to my students is once you put the money in your trading account, forget it is even cash. It’s harder to execute trades when you think of them in turns of dollar bills. It’s better to try and just win pips. Have you ever wondered why at the casino all they use is chips? It’s because psychologically, a gambler is much more likely to gamble more, and with less worry if they are just throwing around chips. Well, this isn’t quite gambling, but the same concept should be used with Forex. Try to win pips, don’t think about winning money.
#5 ”You are the boss”
Remember, you’re the boss of every trade you put into action, you are the one that is responsible for failure or success. You will not have anyone telling you to put in this trade or study this chart. You must be a self-starter and have an entrepreneurial spirit to do this day in and day out. If you have never “been the boss” before then you will learn how much of a responsibility you are about to undertake. You cannot find yourself getting too stressed out at the market or market makers. Negative emotions will get you in a lot of trouble and will show on your trades. Be sure to follow market navigator systems and not your emotions!
