What determines success in trading? KeyTrending.com Forex experts names 6 trading rules for successJohannes Röll 24 / January / 22 Visitors: 215
In this article, KeyTrending Forex experts will introduce you to the basic concepts of investing / trading in the financial markets.
Success in trading with KeyTrending.com, or another broker is directly related to the discipline of the trader. Discipline determines over 90% of success or failure in a trade.
Hence the calculation is pretty straightforward:
Discipline + Knowledge = Success
You can register with a broker such as KeyTrending broker to start your trading journey. But to be successful in trading, you need to follow these rules.
Rule # 1 - Discipline
The market pays you for discipline. Trading discipline puts more money in your pocket, say KeyTrending Forex experts. Fact that is valid in any situation: Discipline = higher profits.
Rule # 2 - discipline again
Be disciplined every day in every trade and the market will reward you for it. Don't be fooled. Don't convince yourself that you are disciplined when you are not 100%. Discipline is one of the most important factors in successful trading, not a habit, which you turn on or off as you see fit. If you quit smoking but smoke another cigarette every now and then, you have not actually quit smoking, have you? It's the same with trade. If you are disciplined in trading 9 out of 10 trades, you cannot claim to be a disciplined trader. This undisciplined trade alone could wipe out all of your daily profit or more. Hence, you need to be disciplined every day and in every trade.
When we say "the market will reward you" here, this also applies to losing trades. If you recognize a bad trade as such and close it with a € 200 loss instead of letting that bad trade end up losing € 1,000, your disciplined approach will secure € 800 of your capital.
Rule # 3 - Position Sizing
Always reduce your position size during bad trading stages. All successful KeyTrending broker traders follow this rule. Why should you continue to enter the market with 5 lots during a bad phase when you can avoid big losses by reducing your position size to, for example, 1 lot. If you have made more than 2 losing trades in a row, reduce your position size. If your next 2 trades are successful again, you can normalize your position size again.
KeyTrending Forex Experts: Rule # 4 - Profit Hedging
Never turn a profit into a loss. Surely everyone has broken this rule at some point. Your goal should be to keep this rule in mind in the future. The market has rewarded you by taking a position in your direction. However, you are not satisfied with the potential profit, and you leave the position open in the hope that the profit will be even greater. Unfortunately, the profit does not increase, but the market reverses and the position moves from profit to loss. You will most likely hesitate to close the position, and your previous profit will turn into a potentially significant loss.
There is no reason to be greedy. This is just one deal. You will still be making a lot of trades on this day and in the following days. There are more than enough options on the market every day. And this will not change in the future.
KeyTrending broker reminds: your daily work should not be done or destroyed by one trade. There are always enough opportunities in the market. Never get hung up on a particular trade.
Rule # 5 - Don't Make Large Losing Trades
Your largest losing trade should never exceed your largest winning trade. KeyTrending Forex broker reminds: register all your transactions during the trading session. For example, if you know that your biggest winning trade on that trading day is 15 pips in the EUR / USD pair, you cannot allow a losing trade to exceed those 15 pips. If you allow a losing trade to exceed your largest winning trade, you will always take a loss when comparing the two trades. And that's exactly what you want to avoid, right?
Rule # 6 - Follow a Trading Strategy
Develop a trading strategy with a KeyTrending Forex broker and stick to it. It is best to write down all the conditions that must be met in order to enter a long or short trade. Basically, it doesn't matter if you are developing your own trading strategy or adapting an existing one. The main thing is that it works and that you act according to a fixed set of rules that give you entry and exit points. Your set of rules is your game plan. You can't win without a game plan.
If you have developed a strategy, but it does not work every trading day or during certain trading phases, do not go home in the evening and develop a new strategy. If your trading strategy on KeyTrending Forex broker works more than 50% of the time, stick to it.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer