10 Don'ts from a profitable trader | Forex Factory

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10 Don'ts from a profitable trader

  • #1
  • First Post: Jul 7, 2020 4:14am Jul 7, 2020 4:14am
1. Don't leave more than 5% of your total wealth in a broker unless it is both heavily regulated (US, Canada) AND publicly listed

2. Don't deposit more than 0.5% of your total wealth in a broker when you first get started

3. Don't place a trade if you are on a losing streak; try 0.1 lot trades or even demo trades until you are back in profit mode

4. Don't open two trades on the same instrument.

5. Don't go overnight if you are trained in intra-day trading.

6. Don't record a lost trade as a "fail" if you correctly followed your plans

7. Don't be afraid of using the highest leverage, but do follow the rule 2 so you will only lose little even if you forget your stop loss

8. Don't be afraid of trading the news, if you did follow the rule 2

9. Don't deposit to a broker if the total trading cost is more than 0.4 pips (round, for EURUSD)

10. Don't deposit again if you find unexcused execution problems, slippage, or slow withdrawal

11. Don't trade ANY leveraged contracts if you have more than 1% of your total wealth on an account

12. Don't trade forex for long term investment/speculation unless you have a swap-free account

13. Don't actually use stop-loss: as soon as the market proves that your prediction were wrong (i.e. no confirmation), try to get ride of the position as soon as possible, at a cost of 1-7 pips, rather than waiting for the 10-20 pips stop loss to be realized.

Those are just my cents. If you have similar ideas we could probably be friends.
  • #2
  • Jul 7, 2020 7:02am Jul 7, 2020 7:02am
1 agree
2 agree
3 False, if you don't place the trade you are not respecting your strategy and you cannot know if it will be a winning trade or not.Loosing streak it's absolutely normal.
4 this is depend on your strategy.
5 Agree
6 agree
7 agree but it's not possible to FORGET the stop loss. Only a idiot forget.
8 agre
9 disagree. Even if it were 1 pips, it's still not significant and you won't lose for it.
10 agree
11 Mmm agree
12 It's not really important
13 absolutely disagree. Trades need room to move. If you plan it's 20 pips stoploss, it's correct and wise respect the plan.

Just one thing: if you are giving advice, you must first prove that you are profitable, not just say it.
This world is full of advice from everyone, but I don't listen to those who don't do better than me. And to know it, you have to prove it
and a two day doubled account , say nothing. This is luck. Long term game it's matter.
  • #3
  • Jul 7, 2020 11:43am Jul 7, 2020 11:43am
Quoting dkrock
13. Apparently, you have never lost electricity nor Internet in the middle of trading. Apparently, you have never had your computer freeze, experience blue screen, go to the bathroom without your computer, prepare a meal without your computer, watch TV instead of your trading screen, surf the Internet instead of staring at your computer screen, or any of the other various activities that take away your attention...other people, telephone calls, knocks at the door, dogs, etc... A stop loss is just smart. The other effect is a stop loss helps...
Somebody here trades for a living.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #4
  • Jul 7, 2020 4:44pm Jul 7, 2020 4:44pm
What about 10 or some 'Do's'?

KP
Do your homework, follow the footprints of smart money
  • #5
  • Jul 8, 2020 7:42am Jul 8, 2020 7:42am
Quoting selfoe
11. Don't trade ANY leveraged contracts if you have more than 1% of your total wealth on an account
You probably mean "do not use any leverage". Seems excessive to me.. You would need a million net worth to trade a single mini-lot!? With over a million net worth you probably need not trading at all.
Return To Disorder
  • #6
  • Jul 8, 2020 8:02am Jul 8, 2020 8:02am
Quoting selfoe
1. Don't leave more than 5% of your total wealth in a broker unless it is both heavily regulated (US, Canada) AND publicly listed 2. Don't deposit more than 0.5% of your total wealth in a broker when you first get started 3. Don't place a trade if you are on a losing streak; try 0.1 lot trades or even demo trades until you are back in profit mode 4. Don't open two trades on the same instrument. 5. Don't go overnight if you are trained in intra-day trading. 6. Don't record a lost trade as a "fail" if you correctly followed your plans 7. Don't be...
hi, my broker is costing me 3 pips, im using demo and there seem to be a lot of slippage problem (if i understand correctly that slippage is not hitting SL).

regards
  • #7
  • Jul 13, 2020 8:52am Jul 13, 2020 8:52am
I also have some advice for traders, I hope that someone will find it useful:
-There is always another day to trade and you wouldn't want to be without money for that next day. So don't risk too much! Some beginners put 20-50% of the deposit and even more at risk. And then they stay with nothing just in front of a profitable entry point. Very often such risks break the psychology and it won't be returned. But if you go wrong a couple of times with standard small risks, then you will always have the next day to correct your mistakes.
-Get the right to trade in large volumes. Even if you have tens or hundreds of thousands of dollars in your account, it doesn't mean that you can trade 10 lots. First try to trade at least one or a minimum volume. If you close 10 sessions in a row with plus, only then increase the volume.
-Avoid unnecessary losses. If you get a stop-loss, it doesn't mean that you are a bad trader. If you understand that a trade is still losing money, but you are still in it - then you probably won't become a good trader until you get rid of this habit. You should understand the difference between "legal" stop-losses, which can reach even 30-50% of the total number of deals, and stop-losses, which can be avoided.
-The first loss you deliberately recorded is the most useful. It is at this point that you realize that stop-loss is also part of the system. Stop-loss is the understanding that leaving a position means only that the situation is no longer suitable for a trade.
  • #8
  • Last Post: Aug 27, 2020 5:07am Aug 27, 2020 5:07am
Quoting selfoe
1. Don't leave more than 5% of your total wealth in a broker unless it is both heavily regulated (US, Canada) AND publicly listed 2. Don't deposit more than 0.5% of your total wealth in a broker when you first get started 3. Don't place a trade if you are on a losing streak; try 0.1 lot trades or even demo trades until you are back in profit mode 4. Don't open two trades on the same instrument. 5. Don't go overnight if you are trained in intra-day trading. 6. Don't record a lost trade as a "fail" if you correctly followed your plans 7. Don't be...
13 is very correct. Stoploss will only make your loss bigger. Nothing else.

SF
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