I posted this in another forum some people said I should also post it here as well, to give new traders here a list of some of the things they shouldn't do. I started this list when I first started trading and still add to it. I read it each day before I trade. I hope it helps you because it really helped me.
1. Always be Learning. Keep an open mind. Never stop trying to learning. Do not only try to learn from the people you agree with; but the ones you don’t.
2. Never make a decision that is based on your emotions. Always make your decisions based on: relevant facts, relevant options then pick the least of the evils.
3. Never Trade without a plan. Trading is long term. Every trade you take or don’t take will either help you get closer to your goals or further away from your goals. Make a Trading Plan and then always follow your plan.
4. Never enter a trade without planning the entry, take profit targets and stop loss.
Base your entry on the relevant information (analysis), the options that are available and pick the least of the evils.
5. Never add to losing positions. Adding to losing positions always works til it doesn’t. Remember the main reasons why I blew up an account in demo trading was due to adding to losing positions and not placing a stop loss.
6..Never trade unless you’re ready to trade.
Don’t trade when you’re tired, upset, have something else on your mind or out of desperation.
7. Never go against the grain.
When everyone is going right, don’t go left. Think Long Term.
8. Never Forget you can mathematically calculate odds; you can not mathematically calculate probabilities.
You’re using probabilities when you deciding on whether or not to take a trade. Use what’s available to put the balance of probabilities on your side
9. Never think there is only one way to do anything when it comes to trading.
Trading is not about 5+5 = 10. . .it’s about what’s the best chance of me getting to ten: 1+9, 2+8, 7+3 etc. Always think balance of probabilities.
10. Never trade or make a trading decision out of fear of loss.Trading and learning is not based on one opportunity: “must act today”, “if you act right now”, the holy grail at this price only for” “discount or will include for today only” its based on taking the max advantage of the opportunity.
11. Never forget Rome. Rome was not build in a day. . .and neither will your trading career. Take the time to make your trading plan using a method that’s suited to you, based on a predetermined money management and that you can work using patience and discipline.
12. Never confuse an opinion with a fact. An opinion is “ all forex brokers offer the same spreads; a fact is not all broker spreads are the same.”
13. Never trade for the sake of having a trade. Sometimes not trading is the most profitable.