When people start too trade with a beautiful plan there is still some small things you should know. I have tried to collect them all I have been smart enough to learn from. I would like you to add on the list so I and other traders can learn from them.
· Know when your broker opens and closes for the week (if you have back tested to start on Monday 06:00 and the broker opens at 08:00 you have a problem). Anyway if this problem occurs, don’t trade! Putting on a random trade is not the solution for consistency.
· Know if there is any maintenance time (rollover etc.) MBTrading which I use, have rollover time at 00:00 New York time and Maintenance period at 17:00 New York time. (Do not backtest at those times if using MBT).
· Make sure you know when they are changing too and from daylight savings if this changes.
· Know when you are changing to and from daylight savings.
· Know when the currency you are trading changes daylight savings.
· Know how all the entry and exit orders work before starting (there is always a tutorial on each broker’s web-page).
· Never trade when you have been drinking (it’s obvious I know but wait and see). This is not the place to be cool or revenge trade because of a drawdown earlier that week. It’s like buying more products you have no idea how to get rid off.
· Set a time you can trade everyday (if you trade weekly, it’s even more important, if you miss a winning trade you will increase your draw-down massively).
· Make sure you have an internet connection that works. Many cafeterias and libraries don’t let most of the broker platform connections through because they run on a connection similar to downloading programs. Remember, if you are about to trade and you can’t because the internet is not working how would you feel? Even worse if that was a winning trade.
· Start out with as little as 3-400 dollars, if or when you are consistent and turn that into 1000 dollars you are doing great. If you turn 400 into 5-6000 you can add more money if you want (not that I see a reason for it as the money you recieve in FX will quickly cumulate up to the amount you want to add, unless it is alot).
· If you can’t be consistent don’t throw good money after bad. I promise you there is no point putting more money in than 2-300 dollars a time as with most traders you will blow several accounts trying different “smart” things. With a 1:100 leverage and by risking 2% of 2-300 dollars a time it should be enough to learn how to trade Forex. Boring? maybe, ut better than papertrading.
· Set some profit goals, When you reach 1200 dollars take out 200 and buy something to yourself or go to a nice restaurant with your lady. Feel that the money in your account is hard cash and not just numbers.
· Never brag or talk about trading to your family or friends there is not a single thing that will come good out of it. You will only be placed in a threatening position which is the last you need as a trader (it is hard enough as it is) only talk too other traders about trading stuff. Join a forum for discussions and general talk. Remember this is a very big psychological game, you don't need extra load...
· Know when your broker opens and closes for the week (if you have back tested to start on Monday 06:00 and the broker opens at 08:00 you have a problem). Anyway if this problem occurs, don’t trade! Putting on a random trade is not the solution for consistency.
· Know if there is any maintenance time (rollover etc.) MBTrading which I use, have rollover time at 00:00 New York time and Maintenance period at 17:00 New York time. (Do not backtest at those times if using MBT).
· Make sure you know when they are changing too and from daylight savings if this changes.
· Know when you are changing to and from daylight savings.
· Know when the currency you are trading changes daylight savings.
· Know how all the entry and exit orders work before starting (there is always a tutorial on each broker’s web-page).
· Never trade when you have been drinking (it’s obvious I know but wait and see). This is not the place to be cool or revenge trade because of a drawdown earlier that week. It’s like buying more products you have no idea how to get rid off.
· Set a time you can trade everyday (if you trade weekly, it’s even more important, if you miss a winning trade you will increase your draw-down massively).
· Make sure you have an internet connection that works. Many cafeterias and libraries don’t let most of the broker platform connections through because they run on a connection similar to downloading programs. Remember, if you are about to trade and you can’t because the internet is not working how would you feel? Even worse if that was a winning trade.
· Start out with as little as 3-400 dollars, if or when you are consistent and turn that into 1000 dollars you are doing great. If you turn 400 into 5-6000 you can add more money if you want (not that I see a reason for it as the money you recieve in FX will quickly cumulate up to the amount you want to add, unless it is alot).
· If you can’t be consistent don’t throw good money after bad. I promise you there is no point putting more money in than 2-300 dollars a time as with most traders you will blow several accounts trying different “smart” things. With a 1:100 leverage and by risking 2% of 2-300 dollars a time it should be enough to learn how to trade Forex. Boring? maybe, ut better than papertrading.
· Set some profit goals, When you reach 1200 dollars take out 200 and buy something to yourself or go to a nice restaurant with your lady. Feel that the money in your account is hard cash and not just numbers.
· Never brag or talk about trading to your family or friends there is not a single thing that will come good out of it. You will only be placed in a threatening position which is the last you need as a trader (it is hard enough as it is) only talk too other traders about trading stuff. Join a forum for discussions and general talk. Remember this is a very big psychological game, you don't need extra load...
to understand your post.
