Forex trading rules. Important Rules for Forex Trading Create a Trading System

Forex trading rules imply a number of basic recommendations, following which you can achieve maximum profit.

All of them can be easily used in real trading, and the result of their application will allow you not only to make a profit, but also to avoid possible losses.

These rules were developed by traders with many years of active work in the forex market and tested by hundreds of traders.

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Basic rules of forex trading.

1. Make a rigorous plan before you start trading. Which you follow, it could be a profitable forex strategy, or just an action plan based on a changing situation.

2. Relax and do not be nervous, you probably noticed that usually trading on a demo account brings much better results than in real life, this is due to a change in the line of behavior. Imagine that you are trading with virtual money.

3. Always record the result and analyze it, which led to the receipt of profit or loss.

4. Be sure to place stop orders, and not only stop loss, but also take profit, these conditions are included in the main rules of forex trading.

5. Open orders to buy when you receive bad news, and to sell good news, and open positions when the market reaches the last reaction point.

6. Constantly learn from the experience of other traders and analyze archived materials on market movements.

7. Trade with the trend, it will always lead to success, this way is less risky than trading against the trend.

8. Remember that the main thing to take into account when forecasting is not the indicators of various forex indicators, but the possible reaction of the bulk of traders, it is this that will be the main factor affecting the price.

9. Do not trade for the entire deposit, differentiate trades, always leave yourself a chance to win back.

10. Do not open a huge number of orders, this complicates your work and deprives you of the opportunity to quickly close all positions.

11. A purchase is made in an uptrend, a sale in a downtrend, remember that you should not open a deal immediately, as soon as a trend is outlined, wait for its confirmation.

12. It is not necessary to memorize all the teaching materials on trading in the foreign exchange market, choose your niche and achieve perfection in it. Only then can you most likely guess the direction of the trend.

Forex rules, if strictly followed, enable even a novice trader to work in the market with a fairly good result and make a profit with a modest investment of his own funds.

Forex trading can be a great way to make money. Of course, as in any other business, it has its own characteristics and principles, and it will be difficult to achieve success without basic economic knowledge. However, this method is the most open and accessible of all types of earnings on the Internet.

The main rule before starting Forex trading is to study the market, its main directions and trends at the moment. After the analysis has been carried out, you can start trading, but this must be done carefully, providing for all the options for the development of events. It is better to wait a little and make a high bet a little later than make a mistake and lose some of your money.

Tracking economic news is an integral part of the Forex game. This will help keep abreast of unexpected currency surges and changes in market trends.

According to experienced investors, the main mistake of beginners is the inability to control themselves. They want to get it “all at once,” expecting easy profits. It is because of the loss of control over oneself that crashes and large losses occur. In this case, you should not be gambling; when playing Forex, it is better to be guided by a cold mind.

Sometimes it is better not to "follow" market trends, but to develop your own strategy. According to the players, this helps to get the most profit. It is important here not only to be able to forecast the movement of the currency yourself, but also to feel how other players will behave.

If you want to play Forex, you should not read all the literature right away. It is better to get less information, but it will be useful and of high quality. With the subsequent work on Forex, you should also adhere to this rule.

If the direction of the market movement for a given period of time deviates from the forecast made by the player, it is better to wait and continue to raise rates at a more favorable moment. Every novice gambler should learn to manage losses while constantly increasing profits.

As you can see, playing Forex is not easy money. It is necessary to have not only economic knowledge, but also certain personal qualities, such as kick patience, the ability to take risks, it is also necessary to be a sufficiently subtle psychologist to anticipate the actions of other players.

Yes, it is possible to make money on Forex, as evidenced by the statistics of those interested in this type of income. For example, the word "Forex" in Google Ukraine has been requested more than 18 thousand times over the last month. Every year the percentage of Internet users who have never heard of making money on the international currency market approaches zero.

Is it realistic for a beginner to make money on Forex?

If we assume that the essence of making money on forex is buying and selling currencies, and this is limited to that, then once you enter the market and make just a few transactions, you can easily squander your deposit and add up the opinion that it is impossible to make money here. This is the prerogative of beginners who do not have any theoretical and practical skills, who perceive work in Forex as a game of the lottery.

In fact, everything is not as simple as we would like it to be. Someone receives special education in order to understand this mechanism, someone turns to professionals, taking trading courses, and this is not a guarantee of getting big earnings. Undoubtedly, it is necessary to gain trading experience and constantly improve. But the result is worth it, because here there is an opportunity to earn and earn a lot.

What do you need to earn money?

What a beginner needs to know in order to be able to achieve financial success in Forex: it is necessary that this earnings niche is really interesting to you, so that there is a desire to make the necessary efforts to achieve your goals;
learn the basics by taking specialized courses in forex trading conducted by practicing experts;
visit specialized forums, participate in discussions with experienced traders, subscribe to all kinds of mailings that are published by practicing traders;
before depositing real funds, test your skills and apply the knowledge gained by opening a Forex demo account;
constantly ask questions and not be afraid to seem like a "teapot" (after all, a question about your money and no one else's).

It's no secret that the vast majority of those who start trading in the foreign exchange market lose their money. Only about 3-5% of them become successful traders, whether it is speculation in currency, stocks or commodity futures. How do they do it? Those who think that it is possible to achieve success without special knowledge and experience are very mistaken. Before starting to make good money, every trader goes through a series of failures, disappointments and big losses.

Losers in the forex market lack one of the most important qualities - patience. Every trader has to learn. And each of them pays a price for it. Those who want to learn how to make money on trading need to learn a few mandatory rules ...

A professional trader always knows what, when and why he is doing. He perfectly understands that he and only he makes all trading decisions, and, therefore, bears full responsibility for them. You are unlikely to find a successful speculator who would blame someone else for his failures. They simply do not exist in nature.

If a trader accepts responsibility, he will have no reason to "feel sorry" for himself unfortunate. In cases when, after opening a position, the market turns against it, it fixes its loss and conducts a thorough analysis of the situation in order to avoid its repetition in the future.

To be successful, you need to try and be willing to make mistakes. But not in order to pull your hair out, but in order to gain the necessary experience, drawing conclusions from each such mistake.

Warren Buffett can hardly be imagined after losing several million dollars blaming the cruel world for such a terrible injustice or blaming his broker for being wrongly recommended. He always took responsibility for all his decisions and that is why he made a fortune on speculation.

A successful trader, having closed another unprofitable deal, first of all asks himself why this happened, whether he followed the rules of his trading system. If so, then he will revise his trading rules. If not, he will have to work on himself in order to increase his self-discipline and motivation. The lack of these qualities in most cases leads to serious losses.

American traders say, "If you need someone's opinion, you better not trade at all."

Indeed, if your trading system brings you more profit than passive investment income, why do you need someone's advice? Would a bank analyst, who gives a positive forecast for a currency, only help you to get into a short position more profitably? This will only confuse you.

If you are trading a long-term trend, how can a day trader's opinion help you? It is impossible to find two speculators whose views on the market would be exactly the same. But the paradox is that it is much easier to do what you are told than to make a decision yourself.

So, either take full responsibility or don't trade at all.

Always follow only signals from your own trading system. If you suddenly have an irresistible urge to ask a recognized "guru" of currency trading, do the following:

• close all your positions;
• reconsider your trading plan;
• assess your psychological state and try to understand what prevents you from taking full responsibility for making a decision;
• as soon as you feel ready to be responsible, return to trading.

Can you learn to be responsible? Of course yes. All that is needed is clear trading rules.

This is called a trading system. It is possible and even necessary to make changes to it, especially after closing unprofitable trades. But to deviate from it - in no case. Thinking once: “it is all of them (by the way, who are they?) Are to blame”, “speculators broke the stops again”, be sure to ask yourself how well you followed the rules of your trading system? If you followed, then your success is already on its way to you, despite today's failures. If not, then you have to do serious work on yourself in order to prevent similar mistakes in the future.

Start trading today. Follow your rules and take full responsibility and you will understand that trading is inherently simple if you know and follow its laws.

Rule 2. Create your trading system

Every successful trader, investor, portfolio manager has his own trading system. Someone trades within the day, someone enters a position for weeks, someone uses trading robots, someone relies on their intuition. There are a great many options for systems, but the most important thing is that such a system exists. For every trader, it somehow includes trading rules within which he feels comfortable.

Warren Buffett, one of the most successful traders in the history of the financial market, made a fortune trading stocks. There are day traders who earn several million dollars a year. There are even dancers using momentum trading for over three million in profits. What unites them all? Yes, the fact that each of them has its own system that suits them in the best way.

Very often traders take someone's trading system and try to make money with it. This is especially true for novice speculators. Most of these are traders who prefer intraday trading. But few of them get real benefit from it. It is not at all easy to spend five hours at the monitor, constantly monitoring the changing quotes. Of course, there are those who do it very well, but most only lose their money.

One of the main challenges for day trading is keeping your peace of mind. It is not easy to keep track of how the market jumps up and down, then making a profit, then taking it back.

The set of rules for your trading system should be consistent with your psychology. If you are not comfortable with intraday trading, expand the time range.

Some speculators can hardly withstand the movement of the market on long-term positions, even by 30-50% in their direction. But for most traders, long-term investments are the only option. None of them will be able to make real profits if they cannot be in a profitable position as long as the market moves in their direction.

Building a profitable trading system is akin to building a successful career. Successful managers not only worked hard, they also loved the job.

If you get real satisfaction from the result you get, if you feel that the business you are doing is “yours,” be sure that you are on the right track.

It's the same in trading. Your system should be convenient for you, and trading using it should be enjoyable. Those who try to go against their self will never succeed.

How to choose the right trading system?

It’s as easy as shelling pears. Analyze your trades and answer the following questions.

1. What profitability from trading operations do I want to receive?
2. How often do I want to make deals: during the whole or only half of the trading day, once every three days or once a week?
3. Will I be able to withstand the stress of intraday trading? Will I be able to hold long-term positions?
4. What are my personality traits? Do I need to constantly take some action?
5. What trading books have I read? Do I have authority among currency speculators? Will a system based on their trading rules work for me?

Someone will be comfortable in a position for months, devoting a minimum of their time to trading and making good profits at the same time. But for a less calm trader, such a system can become a real hell. He prefers to be in the market for a couple of weeks and a movement of 4-5 figures will be enough for him.

The main mistake many traders make is that they literally hate the system they trade. Hence the constant stress and nervous tension, which cannot but affect the results of the trade.

If, instead of “banging their heads against the wall,” they spent time introspection, realized their strengths and weaknesses, then they could create their own strategy that would bring them not only profit, but also pleasure from trading. And they would not need any advice from analysts, complex technical programs. And you wouldn't have to look for those to blame for your failures either.

On average, a beginner trader lasts 6 months. Those who were able to hold out for two years, as a rule, begin to earn a stable income.

This is exactly how much it takes for most speculators to gain sufficient experience, to understand what trading style suits them, and to feel their comfort zone. But, unfortunately, very few pass this stage successfully. Most often, a trader loses his money, and after them, and motivation much earlier. And they never have a desire to understand their own psychology.

If you want to be successful, repeat like a mantra: “I will create a system that will bring me a lot of money and pleasure. And with her I will become the best. "

This confidence should become part of your nature. Now feel free to get to work. The most difficult and interesting is yet to come.

Rule 3. Plan every trade and strictly follow the trading plan

Without a clear trading plan, no trader can stay in the market long enough. Its creation is not an end in itself. It is necessary not only to think over the sequence of your actions, but also to follow it clearly, without deviating not one iota. The plan should include literally everything.

Richard Dennis once said, “Don't worry about where the market will go. Worry about what you will do when this happens. "

After entering a position, a trader cannot control prices. That's why he just needs a plan that includes all the possible options. Once it appears, you will have nothing to worry about, because you are ready for anything. As a result, your trading will turn from an emotional placement of stops into a coherent system.

General example of a trading system

You think that in the near future the euro will grow against the dollar. Therefore, you buy 1 million euros at 1.3320.

Before opening such a position, you need to answer a number of questions.

1. Where do I plan to place my stop? How much money am I willing to lose?
2. How much do I plan to earn? On what basis will I make a decision to exit the position?
3. Am I ready to average the position if the market goes down?
4. If after (specify the period) the euro does not rise, should I close the position or will I wait until the stop is triggered?
5. If the position is closed with a loss, will I look for new entry levels for the euro-dollar pair, or should I switch to another instrument?

Just making a plan of action is not enough, you need to strictly follow it.

After all, it's not for nothing that you thought so carefully about what you will do if the market goes one way or the other. In this case, you do not need anyone's advice. There will be no reason to worry about lost profits or excessive losses. All you need to do is set a goal to create your own trading plan. Think about which strategy will bring you the most profit based on your trading style. Develop it and do not deviate from it under any circumstances.

Creating a trading plan is like planning your travel trip.

Absolutely everything needs to be foreseen. Especially unforeseen circumstances.

• You are in a position in a currency pair, and it opens with a gap of two figures, what will you do?
• You bought the franc, and the SNB decided to conduct an overt currency intervention in order to raise the exchange rate, what then?
• You are short on dollar / ruble, and oil futures have collapsed twice, so what?

If you do not have a ready-made answer to these cases, and you are already in position, then you will quickly realize that you simply do not know what to do. There is a risk that you will start to make rash decisions, and this will immediately affect the trading results, and not for the better.

This is why many traders choose to rely on advice from all sorts of financial analysts. They do not need to draw up their own trading plan. And in case of failure, it is very easy to blame someone else for your losses.

You cannot trust analysts, believe in your trading strategy!

For example, analysts at Citi Group suggest that EURUSD will rise from the current level of 1.3300 to 1.4200. But your trading system says that you need to open a short with a stop loss at 1.3500 and a trailing stop to take profit.

What do you care what other market participants think about this? Naturally, they may be right. But in this case, the maximum that you face is an exit from the position with a loss on the stop. But when you ask yourself how well you followed your trading plan, the answer is definitely yes.

Analysts often give their recommendations solely for the purpose of opening or building up their own position in the opposite direction. There are plenty of examples of this. In particular, in April 2010 Citi convinced investors that the euro would rise to 1.45-1.48 in the coming months. Everyone knows what really happened. On May 5, 2010, RBS released the forecast for the British pound under the slogan: “Buy the pound! We see the target at 1.5260! " And this despite the fact that the market was clearly at the mercy of a downtrend. As a result, the pair broke through the support at 1.43 on May 17.

Each of us would like to be in the place of George Soros or Warren Buffett. The main question is how to do it. What do you think, would Soros conduct the now legendary speculations with the pound against the dollar in 1992, based on someone's advice?

Of course not. Traders of this level must predict market movements several steps ahead and they must do this exclusively by themselves, using their own trading system.

But most traders stubbornly ignore the need to create their own trading plan. And those who do it, constantly violate it without a twinge of conscience. All of them, one way or another, fall into 90% of chronic currency losers.

If you do not want to be among them, develop your trading system and act strictly in accordance with its rules. Then the ability to make money on changes in exchange rates will cease to be a miracle or luck for you. Otherwise, you will only learn the art of losing your money.

Rule 4. Learn, learn and learn again

Trading is a profession.

And like any other, it requires knowledge and experience. Is it possible to become a surgeon or an airplane pilot in 2 weeks. Therefore, do not expect to become a successful speculator after one week of beginner courses.

Any trader who earns a lot and constantly has spent a lot of effort, time and money for this.

Where to start your journey to success? First, you need to understand why you want to trade. Do you like it or do you just really need money?

From this point of view, it will be very useful to read the book "Grow Rich with the Peace of Mind" (make a fortune in harmony with yourself), which was written by N. Hill. It presents the surest approach to any kind of earnings - money cannot be the only goal. You also need to love what you do.

One well-known business man said: "We just did what we loved and were very surprised that we also get paid to do it."

If you come to trading just to make money, the chances of success are slim. Most likely, your desire to learn, and not follow someone's advice and fashion trends, will very soon disappear.

A huge number of traders do not read books on the currency market at all. They are chasing a pipe dream fueled by the "$ 10,000 out of 100 per week !!!" The prospect of losing $ 10,000 doesn't scare them at all at first. They prefer to read predictions rather than books that teach the basics of trading.

There will be little theoretical knowledge to become successful. You need experience and constant self-improvement.

Schwager has repeatedly noted in his books that the path of any trader to success is a series of trial and error that helps him learn how to make money. Are you different from the rest? You are neither better nor worse.

But, in fairness, it should be noted that those who decide to start trading often consider themselves smarter than others.

This delusion is extremely dangerous. You need to get rid of it before replenishing your deposit with real money for the first time. Think about why you should double your deposit every year, just starting to trade, not yet having the necessary knowledge and experience? Do you know something that those who have been trading for 5, 10 or 15 years do not know? Be prepared to be learning for the first three years. Moreover, this training will not be free, the possible drain will be its price. It is in your power to reduce it as much as possible. Ideally, you could even get a scholarship.

Two stages of successful trading

1. You need to develop your own trading system. It needs to take into account as many factors as possible: a convenient timeframe for work, the amount of time you will spend on trading, the potential level of profitability and possible risks. To create an effective system, you must first do some serious work on yourself. You need to constantly monitor your emotional state during trading, monitor stressful situations and minimize them. This is a fairly long process, which usually takes about two years. If this is too long and difficult for you, quit it now and save yourself a lot of money. Well, if you are not afraid of such a long and laborious process - go ahead, get down to business.
2. The system has been created, it's time to start your journey to the top of the Olympus. But do not flatter yourself, you are unlikely to succeed in achieving it. Nobody succeeds. In one period of time you will be as close to her as possible, in another, on the contrary, you will begin to move away a little. But you should never be completely satisfied with yourself. This will be the beginning of the end. This does not mean that you need to constantly look for your mistakes. There is simply no limit to perfection and any system can be made even better. As you gain experience, you yourself will change. Your task is to get the most out of these changes, to become calmer, more responsible and disciplined.

Everyone, even the most experienced traders, makes mistakes. The most difficult thing in Forex is not to make money, but to keep the profit.

Be sure to read the book of one of the greatest speculators, Jess Livermore. Try to understand his approach to trading and never do that.

Jess traded stocks and commodity futures. He was able to make a lot of money. He raised his deposit twice from paltry sums to millions of dollars. But both times I lost all the money I earned. Realizing that he would repeat such success for the third time, he chose a different path - suicide.

The most important thing this book should teach you is to always control your emotions. Livermole was a great trader, but he could not learn to control his psyche. If his trading system did not carry in itself excessive emotional tension, the tragic end, most likely, could have been avoided.

Only control over your psychological state and constant analysis of your own actions, including erroneous ones, will help make trading an enjoyable and comfortable experience.

How to learn how to make a profit and minimize losses?

Each trader has his own path, but there are several general points that need to be worked on sequentially.

1. In the first year of trading:

• focus on psychology. Your task is not so much to make a profit, but to maintain emotional calmness.
• read as much special literature as possible. But after reading the next book, do not put it on the shelf. Try to understand the actions and inner motives of successful traders. Estimate how much time and effort it took them to succeed. Find out how many times they were left behind after another margin call. Formulate for yourself what qualities helped them to succeed.
• attend training seminars. But only not those where you will be promised to reveal all the secrets of Forex. In fact, there are no secrets. Master technical and fundamental analysis, money management. Don't expect a two-hour course by an "experienced" speculator to help you start earning.
• start analyzing graphs. Simple technical programs can be used. Don't make deals, just watch.

By the end of this first year, you should have a clear understanding of what trading is for you. If you understand that currency speculation is not for you, great! You have saved a lot of nerves and money.

Many traders have to go through this stage several times, because at one "perfect" moment, trading becomes a real torment for them.

If only the thought of needing to open a position makes you dreadful, you better do something else!

2. Second year:

• open a deposit for a small amount and start putting your knowledge into practice. Expect to lose this money.
• improve your knowledge level, attend seminars, learn from the experience of successful traders.
• develop your own style that meets your psychological characteristics. Evaluate whether your system allows you to conclude 5 profitable trades in a row and what is the probability of such an event. And now 7 are unprofitable. Pay special attention to the emotional state in the case of both winning and losing trades.
• study technical analysis, read charts. By themselves, charts do not drive the market. But they allow you to calculate the expected price movement based on repeating rules. Use the "paper trading method" to control your emotions. To do this, print any graph. The period should be what your trading system suggests. The main rule is that you should not be aware of what happened after the printed timetable ends. Now try to guess how the price changed after the printout was cut off. Create your trading plan detailing your actions in various situations.
• experiment with different risk parameters. Remember that even if the system provides 50% of winning trades, it can easily give 7 losing trades in a row. When opening a position, do not worry about it being closed at a loss. Trading volumes at this stage are insignificant, so there is no need to worry about possible losses. The main thing is to be clearly aware that you are acting strictly in accordance with your trading plan and to remain calm even in the case of several losing trades in a row. Remember, your trading system has a positive expectation in the long run.

3. Third year.

If you have successfully passed the three previous stages, then you managed to assess your capabilities well enough and your trade turned into a systematic profit making. You have successfully completed your Graduate Currency Speculator Diploma. It will not be possible to complete this course as an external student.

If you are sorry to spend three years of your life on these "universities", do not even try to start trading. You will receive nothing but constant losses and disappointment in yourself.

Well, if you are ready to learn, do not waste time, start. The main thing is not to follow the lead of those who promise you a doubling of your capital every year. Even if you manage to create a system with such profitability, its risks will be appropriate. Trading on the foreign exchange market is not easy at all. You will have to constantly learn from mistakes, preferably from strangers, of course.

Rule 5. Healthy self-confidence

“All really wise thoughts run through our heads thousands and thousands of times. However, in order to make them truly ours, we must be sincerely confident that they are applicable in our life. "
Goethe.

A prerequisite for successful trading is absolute confidence in your trading system, your own strengths and discipline. Every successful trader knows that if you experience even a drop of hesitation before opening another position, the risk of possible losses increases many times over. As you improve your trading rules and constantly work on yourself, your self-confidence will only grow. Without it, it is very difficult to follow your trading plan.

Those who prefer to make decisions based on someone else's strategy have no confidence. As a result, they get a series of losing trades, become disillusioned with someone else's system and choose the next one. And so on ad infinitum.

But any trading strategy assumes the presence of both profitable and unprofitable trades. 10 positions in a row closed at a loss is not uncommon. At the same time, the system as a whole can give 50% of profitable trades.

Systems that involve trading with the main trend give much less than half of the profitable trades. But even infrequent winnings more than cover all losses, and as a result, such trading gives a positive financial result. If the trader abandons the chosen strategy very quickly, the risk that the new system will show the same unsatisfactory result in the short term is very high. An experienced trader will continue to work according to the previously chosen plan and, sooner or later, will receive his profit.

You can become a trader confident in yourself and your system only after hard and painstaking work on yourself.

No one can avoid losing trades. Sometimes they can come one after another. Everyone knows George Soros and remembers how many billions he made between 1970 and 1980. But his funds at one time suffered losses and quite considerable ones.

• He knew that his system would bring losses, without this it is simply impossible to speculate with financial assets.
• He was confident that his system was capable of generating income.
• She works within her expectation and fixes losses when necessary.
• He knew that over a longer period of time, profit on successful positions would more than cover all losses.

Night follows day, summer and spring. Likewise, in trading, periods of failure end, and it is time for profitable trades.

One of the main tasks of a trader who has fallen into a "black band" is to get out of it with the least losses so that future profits will compensate for all losses. But many speculators cannot come to terms with the loss of even a small part of their capital and give up, never waiting for their finest hour.

"According to your faith, it will be given to you."

All our problems are associated, as a rule, with the fact that we ourselves do not believe in ourselves.

If a trader doubts himself, his trading system even for a second, he should stop and again, perhaps for the hundredth time, think carefully and answer a few questions. Why is he trading? What is it for him? Does he believe in his success?

Almost every chronic loser treats trading like a game of chance. For all his failures, he blames anyone but himself. Although, if he had delved into himself a little, he would have realized that his approach to trading was fundamentally flawed. This is not a casino game where everything depends only on fortune, and of course, on the owner of this casino.

It is simply impossible to start making money in the foreign exchange market without faith in success. There are many examples of traders making millions of dollars starting from penny deposits. But then they lost absolutely everything. Their lack of confidence in their abilities did not allow them to maintain the success they had received. Some of them were lucky. After several global failures, they nevertheless began to look for psychological reasons for their defeats.

Ed Seykota, one of the most successful traders said: "Everyone gets from life what he wants and what he believes in."

So ask yourself:

• "What is trading?"
• "Is this a game that cannot be won?"
• "Is this a big casino?"
• "Does strict adherence to the plan bring only losses?"

Determine how much return you would like to receive from trading operations. Decide how much time you are willing to spend on this activity based on your target rate of return.

If it is enough for you to earn 50% of the capital a year and spend 10 minutes on it every day, great, you are a realist. Start working towards this goal.

If this profit is too small for you, just trade more. But this should be strictly in accordance with your trading plan. Control your emotional state by staying within the framework of your own strategy.

Trading is not a quick way to make money. It is rather a long-term investment with varying success.

Having gained some experience, you will understand that the result of a trade is not assessed by a specific amount, but by a relative value. This is what the sixth rule says.

Rule 6. Evaluate your results in relative terms

Trading has a main rule - to follow the trading system, regardless of external factors.

It is fundamentally wrong and dangerous to evaluate your results like this: "Wow, I made money on a new car" or "In one day I lost more than I spent on my last vacation." The fallacy of this approach lies in its emotional component.

When thinking about money, it is extremely difficult to maintain composure and not break your own rules.

Your emotional background will change from frantic euphoria to complete depression. Stop counting money, especially if you are in an open position. Instead, rate your deposit as abstract points. If you succeed, then euphoria and discomfort will remain in the past. Profits and losses will not cause you strong and such dangerous emotions.

A quick profit or loss can cause intense anxiety, which seriously complicates the trader's self-control. How do you get rid of these emotions? It is enough just to follow your trading strategy and not recalculate the financial result every second and not wonder what you will spend or would spend this money on.

The story of Nicolas Darve

This approach is very clearly described in the book by Nicolas Darva "How I made 2 million" (How I made $ 2 million).

This book is not about currency trading, it describes the experience of a stock speculator who has gone from being too emotional and unprofitable trading to profitable trading “on the machine”. Darw had his own trading system and iron self-discipline. But more importantly, he never saw the market as a bag of money. If his system gave a signal, he bought, clearly knowing how much he was ready to lose in case of a loss. The amount of capital did not matter to him, be it $ 5,000 or $ 500,000. He did not count money, instead he strictly followed his system.

Darwa once bought shares at $ 53.5 for $ 350,000. The market rallied above $ 100. Darva received a message from his broker: "Profit already 250,000." Nicolas at this time was engaged in his own trading system and did not even think about money. But, having received this message, he became not himself. He realized that he provided himself, to put it mildly, a comfortable old age (in the 50s, $ 250,000 was worth much more than now). He had only one question, whether to sell, because his system did not give such a signal.

After spending a lot of time thinking, he decided to stay within the framework of his strategy. It was a difficult decision, but time proved it was the right one. A few weeks later, the stock continued to rise and Darwa made a lot more money. If he counted the money, it is unlikely that he would have been able to make the right decision and stay in position.

Basic rules of trading theory

The basic rules of the theory of trading are simple and seem to be clear to everyone:

1. Buy low, sell high.
2. Record losses in time.
3. Let the profit grow, do not fix it ahead of time.

It's that simple. But if this were actually the case, there would be much more than 5% of successful traders.

A profitable trading strategy includes many different factors. It is not enough to understand, you still need to be able to do it.

When opening a position in any currency, almost every trader at least once said to himself: “I’ll break my rules just once. And then I will trade strictly according to them. Nothing bad will happen. " But experienced traders know that this should never be done. The rules are the rules to follow. There should be no exceptions. This is the key to the success of any currency speculator.

We only need to use the accumulated values ​​and follow the rules. This will at least allow you not to lose your deposit.

Tips for novice traders from professionals

1. Use your feet

It is good that such news is rarely released and the market does not always react to it so violently.

7. There is no concept of expensive / cheap on the market

Beginners and those who are far from trading often use the words "expensive" and "cheap". Forget these words. Perhaps in real life, these words can actually make sense. There are no such concepts in trading. Any asset is worth as much as the market estimated it at the moment.

If a stock has never cost 100, and then it breaks through this level and goes further up, then the price can easily reach 150 and 200. If we argue with the notion that 100 is expensive, and 110 is generally space, and 120 is just an impossible price. With this approach, you will definitely stay out of the trend.

The same can be said about "cheap". Remember the fall in the stock market in 2007-2008. For six months, assets have fallen in price by 10 times. Every day the price fell lower and lower and each time it seemed that it was possible to take, because it is so cheap. Buying on these crashes is risky. The price can fall by 20 or 50 times, because there is no concept of expensive / cheap for the value of an asset.

Always act according to the situation.

Novice traders, seeing a small profit, immediately cling to it and fix it. This approach will not make money. Don't stop profits from growing.

To make big money, you need to catch the big trend and wait patiently. I understand how difficult it is to see + 3%, + 10%, + 30% profit, but you need to wait further until there are some clear signs of a reversal and the end of the trend. Each trader should have their own rules for exiting and taking profits.

Don't look for peaks in the market. It is impossible to predict them, so just wait until the market itself starts giving signals that the trend is over.

Continuing the previous point, we can safely say that a trend never ends instantly. There is always a period of flat when the market is marking time. At this moment, there is a reallocation of assets. Those who are aware that the market will not rise, exit, and ordinary traders enter.

Therefore, there is a whole period of time when you can safely exit the market with a profit.

Is in the cache (in the money) as useful as the positions. Therefore, there is no need to worry that you have money, especially to look for entry points in the market when there is none. Being out of position can often be much more profitable than being out of position.

Having money on your account, you can profitably enter the deal.

While you are in the cash in the stock market, you can buy bonds. For example, you can take short-term government bonds (OFZ). There are practically no risks for them, and the profit will go while you are waiting for signals to enter.

Read more about this in the articles:

Short-term speculation will not be profitable. All professional traders declare that in their entire life they have not met a single day trading (in another way, intraday). Therefore, do not chase mini movements, take only large ones.

The market drives you crazy if you trade on it all the time without leaving the monitor for 8-12 hours a day (maybe someone can trade around the clock).

You can read more about short-term trading in the article:

Market opening is often extremely emotional. This is due to the fact that there are traders and investors who are impatient to buy or sell. As a rule, after the morning "boom", an adequate market reaction occurs and the price rolls back.

Why participate in a "crazy" discovery? Take care of yourself, don't get into the emotional market.

Also, avoid high volatility market situations. At such a moment, many false signals can arise that provoke opening a losing trade.

Related entries:

And the rules of the terminal.

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If you want to know how to get started right. Then this article was written especially for you, here you can watch this video:

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Fundamental analysis

You should start by learning the theory of trading. Be sure to pay attention to the fundamental factors. These include the seasonality, the profile of the state and, accordingly, the profile of the currency.

Learn more about the factors that affect the value of certain money. We are talking about such as: changes in the unemployment rate, GDP, the number of exports, imports, and so on, in this matter you will be helped -,.

When all this is known, and you understand that there is an obvious connection between fundamental factors and stock trading, you can pay attention to the influence of rumors on the market.

This point is well described in. After you have understood how important the fundamental points are, you can move on to the technical ones.

But first, do not forget that there is an opinion that has the right to exist, it says that two approaches are suitable for trading, fundamental and technical. And it is not at all necessary to create symbiosis out of them.

Technical analysis and operating rules of the terminal

In technical analysis, it is important to get acquainted with the principle of price movement along the coordinate system. Learn to understand that this movement can be profitable thanks to the contracts available for conclusion.

When this is done, you need to combine knowledge of the terminal with knowledge of the chart. For example, it is important to learn to read the onset of a “flat” not visually, but by a special indicator.

If you managed to learn this, then you need to move on to off-scale. To the list of indicators, you can add% R Williams, which I talked about in the article -.

Have you sorted out the off-scale? Take on the volumes, read the article about this -. They can give excellent ones too. I hope you haven't forgotten to learn how to properly build and where the canals come from.

Further, it would be nice to understand the simplest indicators among them, of course, different types of moving averages. These indicators are capable of providing very reliable signals. Therefore, they are still used in trading for the most eminent masters.

And don't forget, you're not just busy researching technical and fundamentals. You change into the clothes of the inhabitants of the islands. Because, having mastered the profession of a trader, you will not need to live on the mainland and go to work when everyone is walking. This is a completely different life. With its own strict rules, but the Pina Colada cocktail is guaranteed to you in the morning, and the sea surf will accompany you every day!

Create a trading system

Develop it on paper.

The development of the system is carried out first on paper. It can be a trend system, it can be a reversal system (for example - or), it can be a ““ system, but each of them has its own drawbacks.

For example, trend indicators are completely unsuitable for channel trading. they will help here, but this is a reversal system. So you have to balance until the system produces stable and predictable results on paper. When we managed to do this, we turn to the "demo account".

Checking the system on a "demo account".

In fact, working on a "demo account" is a part of a trader's psychological preparation for working on real ones. If you decide to go this way, then you will have a choice to register a demo account with him. For example, or Alpari will do just fine. When registering, you may be asked for some personal information, such as your address of residence, as well as the number of any ID.

Main account characteristics that you should pay attention to when opening a demo account. Deposit size, minimum lot, minimum step when increasing the lot, other characteristics.

Go to the cent account.

Checking the system on a cent account is similar to working on a "demo account". You also can't brag about what you've earned, but you're already under real pressure. Since, although the money is not big, you don't want to lose it.

In general, there is an opinion that working on a cent account is very different from a "demo account". This is true only if you opened an account without money, without looking back at what your cent will be. If they are identical in their parameters, trading should give you equal pleasure.

Go for larger amounts.

In order to move to larger sums, the growing "statement" alone is not enough. Modern companies create entire departments whose task is to attract money to the company. Among the methods they use are:

1. 1. PAMM accounts.
2. 2. Trust management.
3. 3. Systems of "referral" attracting clients.

That is, you can trade large amounts that investors have entrusted to you!

And other.

You will have to work hard before your successes are noticed. Some well-known traders, for example, won specials for the sake of fame. Others organized schools. Still others created printed publications, from the page of which they carried out work to attract capital.

Continuously refine and test the strategy

The main rule of creating a win-win strategy, oddly enough, is to look for its shortcomings. You must constantly make sure that the strategy does not cease to be profitable.

If you notice a slight deviation from the norm, it's time to refine it. Look for methods that will make it easy for you to achieve your target income level.

After such a set of measures is found, it's time to move on to testing. First on paper, then on a "demo account" and then on a cent. And only now the method can be applied on a large amount.

Train your psyche for big losses and big wins.

Get rid of the loser's addiction.

There are many people who cannot deal with the simplest and most trivial problem. Stop losing. They just got used to the fact that their capital constantly goes to zero.