1) Never trade for the sake of want to trade. Trade for profit even there is only small one.
2) If there's a profit (even though it is small), that will be your money until you closed the trade. So I won't let a profit trade go too far. Will close it once in profit and look again before enter another trade.
3) Trade with trend style. Trend line is always your friend. Normally trend trading will grab profit in a stable currency market. We need to watch the market trend to determine the market condition before decided to use this strategy.
4) Tech analysis is good if the market never influenced by the big market events. In case of having big market events (example Oil price grow sky high etc), then should change trading style follow the news.
5) The last one should be very important too. Manage your money well. Don't trade with maximum margin. Keep enough margins for you to escape if you entered a bad trade. Sometime bad trade occurred and you should know how to judge: close it or keep it.
6) Don't enter too many trades in one time. It will be difficult to monitor and mange if you have too many open trade positions.
Sometime people just hesitate to close a lost trade. We know that forex is like gambling too and you may have lost trade sometime. Closed it before it lost too much or keep it and hope that it will return? The decision must make in a short time and must be accurate. Plan to fail. So even you win a dollar it’s a bonus.
Always closed and bad trades and don’t hope that it’ll bounce back. Save your capital. Set your stop loss.
Never invest what you cant afford to lose.
