Every trader dreams of making millions from forex trading. However, it is only a handful of them who are able to face the challenges thrown at them by market and succeed in their goal. There are five unbreakable rules which a successful trader always follows. They are:
a. Trade the trend
b. Never trade on assumptions
c. Discard rumors
d. Never avoid using stop loss facility
e.Cut down losses and ride on profits
Of the above, point b and e are the most difficult to follow rules. Most traders assume that price will reverse at some point of time and enter a trade. That puts the trader at risk. A professional trader will enter a trade only after firm confirmation of the trend. Also, a professional will never close down a winning position early. A trailing stop loss will always be used to protect profits and stay in the trade.
a. Trade the trend
b. Never trade on assumptions
c. Discard rumors
d. Never avoid using stop loss facility
e.Cut down losses and ride on profits
Of the above, point b and e are the most difficult to follow rules. Most traders assume that price will reverse at some point of time and enter a trade. That puts the trader at risk. A professional trader will enter a trade only after firm confirmation of the trend. Also, a professional will never close down a winning position early. A trailing stop loss will always be used to protect profits and stay in the trade.