The following are Forex Golden Rules, which should be applied at any time when trading Forex.
In the forex market the actual success lies with patience when using the Magic Indicator. Not every second or hours you will have the chance to make a successful deal and earn a profit, so you need to wait. However, waiting for hours or even days for the right opportunity to come by can be very challenging and in many cases traders become impatient and start to second guess their system. But if you can be patient then the Magic Indicator will lead you to the right trading opportunities.
Most of the traders want quick money and want to get rich quick in Forex and they fail due to lack of patience. Patience to wait for the right trade with minimum risk and maximum return are the key to success in Forex.
The second challenge that you will face right after stepping into the forex trading is dealing with fear. When you are totally new in forex trading, naturally you will feel tense and unsure. In all businesses, there are possibilities of winning and losing and this can create mental pressure. But there are ways through which you can overcome this fear. Before entering the market, time it using the Magic Indicator. Try to gain basic knowledge of how the Magic Indicator works together with the Forex market. Having a good knowledge of the mechanics of the Magic Indicator in the Forex market will help release your tension. Most of the traders have no fear to hold the loosing trade until they get the margin call but as soon as the trade goes in their favor, they fear to loose the trade, which is totally opposite behavior.
Greed is one of the most dangerous instincts that you will have to deal with in a trillion dollar a day market. You can earn more than you could imagine which makes the business quite attractive. But this is also the reason why many traders face difficulties and fail to survive. The first thing you need to set up in your mind is – you have to be realistic. Use logic and common sense. Don’t expect too much from the market when you are not in a position to gain it. Greed can entice you to go against the trends or your trading system, or forget your risk management, and this can hurt you badly.
The most common mistakes traders makes is due to the greed, they over trades it. Control your Greed.
Being confident can help you to make your way through in every arena. But at the same time this is something you need to be careful of. Being over confident with your trading can lead you to a devastating situation. Always remember, it is the market that sets the rules for this game and you need to follow it. You can’t force the market, and it can rapidly decimate your position. Trust the Magic Indicator. No matter what comes into your mind, and no matter how confident you feel, if the Magic Indicator suggest that you stay away, then do it.
Maintaining discipline is one of the biggest psychological challenges in the forex market. You need to be extremely cautious about your steps and it is important that you follow the direction of Magic Indicator. This is a very important part of discipline in forex trading. You can overcome these blocks to success by realistically examining the Magic Indicator and addressing them. It isn’t easy to master your emotions and transcend fear and greed. But once you manage to overcome all these challenges, you will find yourself in a very strong position in the market using Magic Indicator.
Look at the Change since the opening of the day, if it's positive, means its Bullish day and if its minus means its bearish day. Sure the change may fluctuate during the day, but it helps to know the trend for the day.
When is bullish day, don't short the position and when its bearish day, don't long the position, since 80% of the time market doesn't change the direction except retracement of few pips. Remember the market will always hit the same high/same low on next trading day.
Never open more than one positions for the same currency pair unless the trade is in your favor. Most of the traders will open multiple positions specially when the trade is against them to revenge, which can burn their account.
Diversify the pairs. Most of the traders love to play EURUSD due to the spead but there are so many other pairs which are easy to trade.
Don't play GOLD and silver on margin, as the paper market is highly manipulated and can wipe your account overnight.
Most of the time trader will hold the position thinking the trader will move in this favor and can end up blowing the account. Learn to accept the losses and set it before you enter the trade.
Learn to control your monkey mind. Don't let your mind jump like monkey, because monkey has tendency to jump in random from branches to branches without any clue where he is going. Once you master your monkey mind, you can master Forex
Impatience
In the forex market the actual success lies with patience when using the Magic Indicator. Not every second or hours you will have the chance to make a successful deal and earn a profit, so you need to wait. However, waiting for hours or even days for the right opportunity to come by can be very challenging and in many cases traders become impatient and start to second guess their system. But if you can be patient then the Magic Indicator will lead you to the right trading opportunities.
Most of the traders want quick money and want to get rich quick in Forex and they fail due to lack of patience. Patience to wait for the right trade with minimum risk and maximum return are the key to success in Forex.
Fear
The second challenge that you will face right after stepping into the forex trading is dealing with fear. When you are totally new in forex trading, naturally you will feel tense and unsure. In all businesses, there are possibilities of winning and losing and this can create mental pressure. But there are ways through which you can overcome this fear. Before entering the market, time it using the Magic Indicator. Try to gain basic knowledge of how the Magic Indicator works together with the Forex market. Having a good knowledge of the mechanics of the Magic Indicator in the Forex market will help release your tension. Most of the traders have no fear to hold the loosing trade until they get the margin call but as soon as the trade goes in their favor, they fear to loose the trade, which is totally opposite behavior.
Greed
Greed is one of the most dangerous instincts that you will have to deal with in a trillion dollar a day market. You can earn more than you could imagine which makes the business quite attractive. But this is also the reason why many traders face difficulties and fail to survive. The first thing you need to set up in your mind is – you have to be realistic. Use logic and common sense. Don’t expect too much from the market when you are not in a position to gain it. Greed can entice you to go against the trends or your trading system, or forget your risk management, and this can hurt you badly.
The most common mistakes traders makes is due to the greed, they over trades it. Control your Greed.
Over confidence
Being confident can help you to make your way through in every arena. But at the same time this is something you need to be careful of. Being over confident with your trading can lead you to a devastating situation. Always remember, it is the market that sets the rules for this game and you need to follow it. You can’t force the market, and it can rapidly decimate your position. Trust the Magic Indicator. No matter what comes into your mind, and no matter how confident you feel, if the Magic Indicator suggest that you stay away, then do it.
Lack of discipline
Maintaining discipline is one of the biggest psychological challenges in the forex market. You need to be extremely cautious about your steps and it is important that you follow the direction of Magic Indicator. This is a very important part of discipline in forex trading. You can overcome these blocks to success by realistically examining the Magic Indicator and addressing them. It isn’t easy to master your emotions and transcend fear and greed. But once you manage to overcome all these challenges, you will find yourself in a very strong position in the market using Magic Indicator.
Change Indicator
Look at the Change since the opening of the day, if it's positive, means its Bullish day and if its minus means its bearish day. Sure the change may fluctuate during the day, but it helps to know the trend for the day.
When is bullish day, don't short the position and when its bearish day, don't long the position, since 80% of the time market doesn't change the direction except retracement of few pips. Remember the market will always hit the same high/same low on next trading day.
Over Trading
Never open more than one positions for the same currency pair unless the trade is in your favor. Most of the traders will open multiple positions specially when the trade is against them to revenge, which can burn their account.
Diversification
Diversify the pairs. Most of the traders love to play EURUSD due to the spead but there are so many other pairs which are easy to trade.
Trading GOLD and Silver
Don't play GOLD and silver on margin, as the paper market is highly manipulated and can wipe your account overnight.
Learn to carry trade for days/weeks for better returns
Stop Loss
Most of the time trader will hold the position thinking the trader will move in this favor and can end up blowing the account. Learn to accept the losses and set it before you enter the trade.
Mind Control
Learn to control your monkey mind. Don't let your mind jump like monkey, because monkey has tendency to jump in random from branches to branches without any clue where he is going. Once you master your monkey mind, you can master Forex
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