Here is a list of things you should do:
1 - When you're looking for a Forex system, course, ebook or software, use your good sense.
2 - If you're planning on buying some Forex product, choose one that has a guarantee or a free trial offer.
3 - Check a reviews website in order to know what other traders are saying about the product you're thinking of buying.
4 - Read the entire sales page of the product and if you have any question, contact the owner.
5 - Before you use the product on a real account, test it deeply on a demo account.
These simple advices might save you a lot of money and time.
There is an ideal mindset, character, and mental attitude that traders need to acquire. I say "acquire" because few people have the innate personality that makes this mindset "natural". With respect to your trading, this involves being free of anxiety, fear, despair or regret. It also involves being able to remain calm, confident, focused and disciplined in the face of adverse trading outcomes.
Here is a list of 6 advices:
1 - Trade with a Disciplined Plan:
The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $500 without serious research and examination of the product he/she is about to purchase, yet the average trader would make a trade that could easily cost him/her $500 based on little more than a feeling or hunch.
The plan must include stop and limit levels for the trade, as your analysis should encompass the expected downside as well as the expected upside. Be sure that you have a plan in place before you start to trade.
2 - Don't Trade Based On Emotions:
This is the worst thing you can do. If you're with some kind of problem in your head that just don't let you think straight, take the day off. It's better not to make any money than losing it.
It may also happen that you just lived a losing strike. You're jut furious and you just can't wait to show that you're in charge... Don't! Stop! Take a deep breath, calm down and try to ignore what you just went through. Follow your system rules and ignore everything else.
But this isn't the only case. You might just be on a winning strike. Well, you're winning, you're the man... Stop! You're not the man. You're a trader that is being successful. If you want to keep trading well, put those emotions aside...
3 - Good Execution Good Anticipation:
Everybody knows that trading is a number game. I mean, our success is not dependent on the outcome of the next trade; our success is dependent on the overall profitability of many trades. So, while we are trading, whether the last trade we did was profitable or not is definitely not important. There is no point drawing conclusions on the outcome of just one -or even a few-trades. We can only access our anticipation skills when we have made a reasonable number of trades and see the longer-term result of our action. It is so important that when we are trading, our goal should be focus on executing our trades with ruthless efficiency and to judge only that. If you consider the ways that you lose money trading, you will find that it is down to poor execution, rather than poor anticipation.
4 - Cut Your Losses Early and Let Your Profits Run:
This simple concept is one of the most difficult to implement and is the cause of most traders' demise. Most traders violate their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position.
These same people will easily sit on losing positions, allowing the market to move against them for hundreds of pips in hopes that the market will come back.
In addition, traders who have had their stops hit a few times only to see the market go back in their favor once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more than a predetermined amount. You simply allow your profits on the winners to run and make sure that your losses are minimal. What is it about cutting a loss that is so hard?
5 - Do Not Over Trade:
One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin.
Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves. As a consequence of this, they are often forced to exit a position at the wrong time. A good rule of thumb is to never use more than 5% of your account at any given time.
6 - Do Not Marry Your Trades:
The reason trading with a plan is the #1 tip is because most objective analysis is done before the trade is executed. Once a trader is in a position, he tends to analyze the market differently in the hopes that the market will move in a favorable direction rather than objectively looking at the changing factors that may have turned against your original analysis. This is especially true for losses. Traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses.
Well, that's it.
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