Money Management & Trading habits:
Maximum 5% risk per pair.
Your risk to profit ratio has to be minimum 1:2. That means if you are taking a 5% risk on a trade make sure your profit target would be at least 10%.Always have realistic targets.
More trades you take the more you expose your account for losses. No trader in this world can profit from every single market move.
Patience plays a big part in trading. Take the trades only if you are at least 90% sure of profiting from it. If you are not sure stay away from the trade. Staying on the sideline is as good as winning.
Always have a trading strategy … make a habit to stick to it doesn’t matter how desperate you are. Always trust your strategy but not bloomberg or some statement from citibank.
Your charts are your forex bible. Everything what you need to know about forex is on your charts. You will learn something new everyday from you charts.
Specialize in one or two pairs. Every single pair has it’s own characteristics. No two pairs are the same. Don’t trade all the pairs your broker can offer. If you specialize in one or two pairs very soon you will be able to read the pair like a road map. Stay away from the ranging markets.
Don’t try to chase every single pip or market movement.the more you trade there is more risk of losing your money.remember there is no easy way to become a good consistently profitable trader. No one can become a profitable trader overnight. As everything else in life it takes time, patience lots of sacrifices and learning. Don’t be afraid of mistakes.By Imran Sait