Forex trading beginners must see the trading discipline of stable profits

[JRFX Forex player]

1. Macro discipline

• After three consecutive losses, take a forced break to adjust your mentality and analyze the reasons.
• When you have made a continuous profit of more than 50%, you should also suspend trading to avoid greed.
• Avoid trading too frequently and keep a calm and clear mind.

2. Considerations before entering the market

• Avoid entering the market when the market is relatively quiet.
• Choose currencies with clear trends and do not trade with unclear trends.
• Choose strong currencies when going long and weak currencies when going short.
• Each transaction requires clear entry price, stop loss price, target price and position control.

3. Execution after entering the market

• When the short-term profit exceeds 30 points, immediately raise the stop loss to near the cost.
• Adhere to the original trading plan and do not easily change the impact caused by short-term signals such as the 30-minute chart.

4. Strategy when building a position

• Build a position in line with the trend and follow the characteristics of trend continuation.
• Avoid greed and do not blindly build a position against the trend due to a large drop.

5. Closing time

• Use multiple signal verification methods to confirm the closing signal of trending transactions.
• Counter-trend transactions require fast entry and exit, do not fight to the end, and remain flexible to respond to market changes.

6. Effective stop loss method

• Use fixed points or recent highs and lows to set stop losses.
• Use technical indicators such as moving averages and trend lines to assist stop loss decisions.

7. Reasonable position management

• According to the type of transaction and market conditions, reasonably divide the proportion of light positions, medium positions and heavy positions.
• Avoid excessive expansion of positions in counter-trend transactions and keep risk control within a reasonable range.

8. Preferred trading hours

• Avoid trading on Fridays and holidays because the market is highly volatile and difficult to predict.
• Choose active market hours for trading, such as overlapping periods of European and American markets.

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[Fin_Trader]

• Avoid trading on Fridays and holidays because the market is highly volatile and difficult to predict.
• Choose active market hours for trading, such as overlapping periods of European and American markets.

I would add that it is also necessary to monitor the publication time of important news from the economic calendar. Such news often increases volatility in the market and the price can go anywhere unplanned and sharply, even if your trading strategy showed a completely different direction of price movement. I am not trading at this time and I am waiting for the market to calm down.

 

[Lee.me]

All of that needs to be adjusted to your style, those are good points in general but for every trader, certain customizations need to be made, not to mention we do not all live the same way, so behaviors regarding this can be very different.

 

[Fin_Trader]

Trader discipline is a key condition for success. We must trade only according to the terms and conditions of our trading strategy and not deviate from this. Otherwise, any unreasonable actions and emotional trading will only contribute to losses.

 

[Polakandil]

I would add that it is also necessary to monitor the publication time of important news from the economic calendar. Such news often increases volatility in the market and the price can go anywhere unplanned and sharply, even if your trading strategy showed a completely different direction of price movement. I am not trading at this time and I am waiting for the market to calm down.

Yes, agree, that reading updated important news sometimes influences the market to be higher volatile depending on the news that was released, Paying attention to the news in a timely could give more insight into so many factors that can drive the market.