+234 802 828 1192Contact Details
Posted on Sep 10, 2019 at 12:30 PM
There is a popular saying that “when the going gets tough, the tough gets going. So also, when trading seems to be getting tough, these are what the tough traders do
Tip#1 Reconsider Your Trading Volume
The first commandment for Trading is “protect your equity”. But what you must understand is that, it is your Equity size that must determine your Lot-Size. Can you compare the ability of a fast sports car to fill a 100,000 litre tank to a 5,000 litre capacity water tanker…? Even if the sports car is a Ferrari or Lamborghini, it will take 100 trips & too much fuel to get the job done, when the water tanker will achieve same in JUST TWO TRIPS.
Your Equity size is likened to the vehicle while the amount of water it can lift per trip is your Trading Volume. Let your Equity Size always define your Lot-Size so that a single loss would not lead to a total loss of account.
Tip#2 Trade in Line With the Market Trend
Why would you want to swim against the tide just when the current is strongest? You will always tire out and definitely lose. It is far much smarter to swim with the tide because it will bring you to shore with less effort.
Simply put; if the overall market Trend is UP, prepare to BUY. If the overall market Trend is DOWN, prepare to SELL. Anything other than this is a recipe for guaranteed loss of your hard-earned money.
Click here to see our Weekly Forecast for identifying market trends.
Tip#3 Don't Use Ultra-Tight Stops
This is a death by a thousand cuts. If you continually use ultra-tight stops because you don’t want to lose a trade, you risk being stopped out prematurely and continually too. What may not know is that this slowly drains your account.
Assuming that you are trading in line with the overall Market Trend in Tip #2 above, then your trade position should be well supported. Therefore, if you are trading intraday, anchor your stops above or below the previous day’s highs or lows. Put your stops in the place where you know that “except the market trend changed, the trade can’t go wrong”.
Tip#4 Improve Your Trading Psychology
Competence is the father of confidence, granted. However, the psychological nature of trading is often overlooked and seen as unnecessary. If you can take some time to look through our blog bank, we have a good number of articles on this all-important subject. So if you have ignored the almighty “market psychology” until now, or would just like a refresher, take a look at the articles which can be found in our education section.
Note: If you haven't had a look yet, spend some time exploring the site as there is a wealth of free material to enjoy.
Tip#5 Rules Based Strategies Are Woke
You see, all trading strategies work… until they don’t work. Ironical, isn’t it? But that’s the very bitter pill all traders must swallow. However, I found out that when your trading strategy can be combined with certain rules, they tend to reduce the involvement of your emotions drastically. This, in turn, will increase your logical reasoning and ensure accuracy of results because you are a “RULES PLAYER”.
This is a key concept to grasp. But tell me who scores a penalty with his hands in football… of course, except your name is Maradona. LOL!
With these Five tips, I am almost definate that you can survive any market turbulence or trial times as a Forex Trader, So keep your head up and get prepared to beat any market situation.
Got any question? Ask Me Anything that can help you trade better!
As usual, I’d love for this week’s Q&A to be successful and provide an invaluable collection of answers to common Forex issues. To do that, I need your help.
Here’s what you can do to get involved and have your question answered in next week’s post: