10 X Currency Trading Tips for Better Profits with Your Trading Signals
1. Any trade should be thought out and adhere to the rules and as Jack Shawager puts it “never an intraday impulse” trades on impulse over the long term – make sure you have rules in your trading plan and stick to them. In may respects a trade should be entered on clear rules and in our view, the best time to do this is at the end of the trading day
2. Don't try and grab a few extra pips when getting into a trade – if you try and get in to early, miss a trade and wait for the pull back this will see you lose long term. If you are trading longer term or swing trading a few pips won't matter to much and by adhering to your trading rules, the small portion of a trade you miss, will be more than compensated by one big trend.
3. Don't let the fact that you have missed the start of a trend stop you from trading it. All big currency trends, will offer you multiple entry points over the life of the trend of any currency pair long term.
4. When you enter the trading signal enter the stop to protect you at the same time and review the stop and trade daily.
5. Many traders simply enter a trade have a target and wait but this is not what pro traders do they review the trade each day to see if the trade is still valid and also review the stop loss. Currency markets are in a constant state of flux and change all the time and you need to keep an eye on these changes and react to them.
6. Don't try and fade a price spike unless you have a price pattern to support the view you are taking on your charts. When markets are overbought or oversold it's tempting to think they can't go higher or lower but they can and a huge number of traders have found this out to their cost. Also, don't do what many novice traders do which is to buy a new market high or sell a new low.
7. Treat big and small positions in the same way – don't think it's only a small position so doesn't really matter, if you take this attitude you will end up losing on these so called small trades – All trading signals are important.
8. Never double up a trade which has been in profit on a dip to entry – I have seen traders do this lots of times but when a market retraces after being ahead its a warning the trade my turn the other way.
9. If you dramatically right in terms of a trading signal on the first day you enter the market – never take profits on that day. You might be excited you have a big profit but chances are its going to get bigger on the next day so be disciplined and stay with it. The same logic works in reverse – if you are dramatically wrong on the first day get out, even if your stop loss has not been hit because the chances are, the stop will get taken out.
10. Lean to vary the size of your trading positions and learn to gear down when losing and also, take partial profits from trades in the market. If you do this, you will find you will protect your equity and also smooth the equity curve on your account.
The above trading tips, in relation to the execution of a trading signal, are based on maximizing profits and keeping losses small. If you learn them, they will give you -a strong money management combined with, strict entry criteria in terms of trades you take in the currency markets. If you incorporate them in your trading plan, they will help you keep your emotions under control, while giving you a disciplined trading strategy which will help you achieve long term currency trading success.