We wish we heard these when we first started learning Forex…..
- We are not gambling in the forex market, this is how you lose money very quickly
- There is a risk to every single trade you make, however, you can reduce the risk of your trade by thorough technical and fundamental analysis, and by the use of risk management – which we will teach you
- Gambling removes all strategy, you could make a lot of money very quickly, but you can also lose money very quickly
- Don’t just put a trade on as you have a hunch.
Fail to prepare, prepare to fail
- If you do not complete thorough technical and fundamental analysis, prepare to lose your trade
Always use stop losses
- Without a stop loss, you are risking all of your account equity in one position.
- We will teach you how to calculate a stop loss based on your equity and the position
Make sure you are trading with the fundamental backing
- Trading against the fundamentals will increase the chances of losses
- There is a saying, ‘don’t try to catch a falling knife’.
- Trying to guess when there will be a reversal is high risk
- The fear of missing out is a big killer in the forex market, people think they are missing out on an opportunity and catch the trade in the wrong place. They can then lose due to bad timing
- There will always be more trades
- If you master this skill, you will be a lot more successful
Use a trading checklist
- Using a checklist before you place a trade will help eliminate bad trades and prevent you from overtrading
- We will provide you with a checklist later in the course
Review your past trades and look at where you may have gone wrong
- This can help you identify if you keep making the same mistakes on a trade
- Being disciplined and sticking to your trade checklist is very important.
- If the trade doesn’t fit the checklist, do not trade!