@Evanture_

THE GOLDEN RULES OF FOREX !

TIPS AND GUIDELINES EVERY

TRADER SHOULD KNOW.
 @Evanture_

GUIDELINES

Never predict the market the trend is your friend.

Exit out after 5-10% loss, never get to attached to the market, never get to emotionally
attached to money when entering a trade always use proper money management.

Never hold onto your losses, ex: -$50.00 and hoping for a reversal.

Money mange based on account size.

Never over trade one bad trade may lead to more, always set your limits.

Learn from your victories and losses, only then you'll know why you were right and wrong.

It's not about knowing when to trade, but knowing when not to.

Study the market more than you trade the market.

Not everyday is a trading day.

Risk 1-3% per trade never more.

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 @Evanture_
RULE # 1

THIS IS TRADING NOT GAMBLING

▸ If you are here to make profit you need to
follow the correct signals, systems and
RULES

▸ A lot of Traders will make trades just to

feel the rush of making the trade and be
in the market !

▸ Most traders do something like this - they

will go for a “QUICK” 5 - 10 pips with no
overall plan to the trade and not care if
they lose that same 5 - 10 pips.

▸ That mentality will destroy a trader in the

long run of trading.
 @Evanture_
RULE # 2

NEVER RISK MORE THAN YOU CAN AFFORD TO LOSE

▸ This one never ceases to amaze me of how many
traders want to risk so much on high risk
investments.

▸ Any Trade can go from good to bad in minutes,

while systems, trends and services are made to
help improve your profits sometimes its inevitable
that you will have a bad trading day !

▸ Stick to money management principles and your

system - imagine putting a very large amount on 1
trade and having that trade go against you in a
bad way and end up loosing 30 - 50% of your
account - this would not only be hard to come
back from but trading wise but you would lose lots
of confidence mentally.

▸ 2 never risk more than 1 - 3 % per trade if you have

5.000 in your account than you shouldn't be
risking more than $150 per trade - this is what
keeps you in the game long term !
 @Evanture_
WHY RULE NUMBER 2 IS IMPORTANT “LOSING IS PART OF THE GAME THE BEST TRADERS ARE GOOD AT LOSING” !

As a trader we should follow the rule of risking 1 – 3 %

The goal in trading is to overall risk less and
of risk on our account size With your stop loss, you can
make a greater reward but It’s good to know
determine your position size and how much you are where you'll end up if you lose a trade thats
willing to risk on any single trade. Without a stop loss,
why risk management is key any trader is given
pre-determining your risk and the size of your trade to go on a losing streak you can't and wont win
isn't as a proper management or discipline skill to lack.
every trade.
Understand its not uncommon to
Starting Balance
$1000 Starting Balance
lose 3 ,4 or even 5 trades in a row
its completely normal but there
Balance after losses @2% Balance after losses @10%
differences between losing
1st loss = $980.00 1st loss = $900.00 rationally and having controlled
loses.
2nd Loss = $960.40 2nd loss = $810.00
3rd loss = $941.19 3rd loss = $729.00 After 10 losses in a row @2% of risk = total
loss of 17% on account
4th loss = $922.37 4th loss = $656.10
After 10 losses in a row @10% of risk =
5th loss = $903.92 5th loss = $590.49 total loss of 65% on account

6th loss = $885.84 6th loss = $531.44 this is for perspective - losing is apart of
trading but taking unnecessary losses can
7th loss = $868.12 7th loss = $478.30 really damage your trading and confidence

8th loss = $850.76 8th loss = $430.47 - you don't want to be the trader who says
“wow i should have risked less why’d i take
9th loss = $833.74 9th loss = $387.69 that trade it should have only lost 1%

10th loss = $817.06 10th loss = $348.92

 @Evanture_
RULE # 3

PLAN YOUR TRADE, TRADE YOUR PLAN

▸ This is your job as a trader to develop a trading plan
towards the trades that you take and follow the rules
to that plan !

▸ Your main goal is to follow what your plan is telling

you - if there is specific rules or strategies that you
need to see and have in order to place a trade, its a
simple as this if you don't see your plan/strategy then
don't take a trade.

▸ Part of this comes from overall experience and

intuition towards the charts ! its always good to have
clear reasoning as to why you are taking a trade if you
don't have reasons as to why you take a trade then
why take one ?

▸ Having a trading plan and following it can help

eliminate those unnecessary losses, one thing I've
seen hundreds of time is trader taking trade for no
reason just entering the market to be in the market,
not only have i seen it I've experienced this my self
RULE # 4

LESS IS MORE !
▸ I Believe the best setups don't happen everyday, so with
this said “everyday does not need to be a trading day”

▸ Especially with new traders there is always an eagerness

to be in the market with way too many trades, way too
quick, as a trader its key to understand your not going
to be apart of every move, trend or setup !

▸ So your overall goal should not be to focus on as much

as you few as you can

▸ There should never be force to a trade, the key is quality

control ! A good approach is to manage 2 -3 trades at a
time until you gain the right experience. Trading with
this type of discipline will allow you to capitalize on the
best setups with higher probability to them.
RULE #5

NEVER LET WINNERS TURN TO LOSERS

▸ The FX markets can move fast, with gains turning into losses
in a matter of minutes, making it critical to properly manage
your capital. One of the cardinal rules of trading is to protect
your profits - even if it means banking only 15 pips at a time.
To some, 15 pips may seem like chump change; but if you
take 10 trades 15 pips at a time, that adds up to a
respectable 150 points of profits !

▸ Protect your profits. Protect your profits. There is nothing

worse than watching your trade be up 30 points one minute,
only to see it completely reverse a short while later and take
out your stop 40 points lower. If you haven't already
experienced this feeling firsthand, consider yourself lucky -
it's a woe most traders face more often than you can imagine
and is a perfect example of poor money management.

▸ The trailing stop loss is the best way to prevent a winner

turning to a loser, surely yes it sucks having to take that small
profit nut overall in the long run this is good for discipline
and its never bad to take profits to say the least !