The Essential Guide to

Guide: Featured Guides


Be disciplined. There's a saying in the business: Plan your trade and trade your Plan. Whatever trading system you use - pick one that doesn't stretch your personal stress levels - make sure you stick to it. There must be no exceptions to your rules, therein lies the path to disaster.

Admit mistakes. You are bound to make wrong calls occasionally. When it happens, don't dither. You will have a rule that says cut losses, so do it. Remember, nobody is perfect and all trades cannot be winners. Always look at the bigger picture. This will be important when cutting your losses, although stop losses may help with this immensely.

Use your money. Never borrow to bet. Only trade with money you can afford to lose.

Know the product. Research and understand the volatility (range of price movement) of the instrument you are dealing in.

Sleep well. If you lie awake at night worrying about a bet you are going to make, don't do it. If you are wakefully worrying about a bet you have already made, don't do it again. Life's too precious and too short not to enjoy every minute.

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