Trade with a plan: No currency trader lasts very long without a well-conceived game plan for each trade. Successful currency traders have a specific plan of attack for each position, including position size, entry point, stop-loss exit, and take-profit exit.
Anticipate event outcomes: Successful forex traders look ahead to future events and consider how much the market has (or hasn't) priced in an expected outcome. They also consider the likely reactions if the event matches, or fails to match, those expectations. Then they construct trading strategies based on those alternative outcomes.
Stay flexible: Rather than wait for price action to take them out of their trade, successful currency traders adapt to incoming news and information and quickly abandon an open position if events run counter to it. They remain alert to fresh opportunities that may develop in the market, and they keep sufficient margin available so that they're prepared to react when things change.
Focus on a few pairs: Many successful forex traders focus on only one or two currency pairs for most of their trading. Doing so enables them to get a better feel for those markets in terms of price levels and price behavior. It also narrows the amount of information and data they need to monitor.
Protect profits: Successful traders take profit regularly, whether it's a partial take-profit (reducing the size of a winning position) or squaring ...
With Safari, you learn the way you learn best. Get unlimited access to videos, live online training,
learning paths, books, interactive tutorials, and more.