Rules are around us every day. From the type of food we eat to the way we drive to what we wear to work – and some of those rules are pretty silly. Or so we think. But, bear in mind that behind every rule is a reason and just because we might not be able to see what that reason is, it doesn’t mean that the rule is pointless. When it comes to trading, the rules are essential. Follow the rules of trading and you’ll discover that it really can change your life.
Understanding Your Strategy
The first rule of trading is to understand what your strategy is. Many people just go into trading without putting a strategy in place at all, and that can only spell disaster, even if ‘beginner’s luck’ is there at the start. Trading without a strategy has a name – it’s called gambling. But for those who really want to make something of and out of their trades, it’s time to follow the rules of trading, and that means not only putting a strategy in place, but understanding it, and following it to the letter. Getting this important part of trading right takes time and effort, but once it is done it will be worth every second you put into it.
Take Your Money Seriously
By all means, follow the rules of trading and we hope you have great success. But if you can’t afford to make a trade (that is, you can’t afford to lose the money, because there is always a chance that any trade can be a losing one) then don’t. Just don’t. Having money to pay the mortgage, make the rent, buy food… that’s important. And if by losing the trade you wouldn’t have the funds to make your important monthly obligations then it is time to step away. Be honest with yourself and if you are in debt and/or seriously cannot afford to lose any money, don’t take the risk.
Listen To Yourself
Gut instinct has a lot to say for itself.There is so much about the mind, body and whatever the soul might actually be that we can’t ever discount anything really. And gut instinct – that feeling you get about a situation, whether it’s good or bad – should never be discounted in trading. Follow the rules of your trading plan and listen to your own head and heart. Follow your own strategy that you know to be right. And please, please,don’t listen to pundits or tipsters who are convinced they know more than you do. Do they? Do they really? Think about it. They have no idea what your strategy is or why it works for you, so they can’t possibly know what trade is the best one for you to get into. The tips these people offer are just their opinion. Well, you have your own opinion. Sometimes it will match theirs, and sometimes it won’t. But go with what you want, not what someone else is telling you.
Don’t Look Back
If you are keen to follow the rules of trading, don’t look back. Really. Don’t keep thinking about past errors or losses as this will reduce your confidence on your ability to understand your strategy and trade with it. Equally, don’t look back on your past wins either –this could make you over-confidence and liable to take risks that you wouldn’t have done otherwise, just because you were sure you couldn’t lose. Trading is a balancing act, and there is a fine line between going too far either way. The key is not to let your emotions get in the way of a trade. Professionals don’t.They don’t get angry, sad, ecstatic over trades. They just keep plugging on.
Lose
That’s right. To follow the rules of trading you need to lose. Not all the time, of course, but it’s going to happen. It’s an inevitable part of trading. You simply cannot avoid it. But you can –somewhat – manage it. That means that you won’t lose as much money as you might otherwise have done. Great!
Don’t Forget To Be Excited!
We know we said earlier about keeping your emotions in check, and we’re not saying that you need to jump up and down with excitement, but what we do want is for you to enjoy what you’re doing. Follow the rules of trading and don’t make it all about the money – be the best trader you can be, and the money will follow.
Any opinions expressed by our company’s representatives regarding the prices of specific currencies and the direction they will take in the future are purely opinions and are used for demonstration or training purposed only. They do not necessarily represent the opinion of Thelazytrader.com are NOT guaranteed in any way. In no event shall Thelazytrader.com have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided verbally or via the Internet, or any delays, inaccuracies, errors in, or omissions of information.
Editors’ Picks
EUR/USD hits two-day highs near 1.1820
EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.
GBP/USD reclaims 1.3600 and above
GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.
USD/JPY drops back below 157.00, as focus shifts to Japan snap election
USD/JPY is back in the red below 157.00 in the Asian session on Friday. The Japanese Yen recovers ground against the US Dollar amid some profit-taking ahead of Japan's snap general election on Sunday. The preliminary reading of the Michigan Consumer Sentiment Index report for February will be released later on Friday.
Editors’ Picks
EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates Premium
The EUR/USD pair lost additional ground in the first week of February, settling at around 1.1820. The reversal lost momentum after the pair peaked at 1.2082 in January, its highest since mid-2021.
Gold: Volatility persists in commodity space Premium
After losing more than 8% to end the previous week, Gold (XAU/USD) remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000.
GBP/USD: Pound Sterling tests key support ahead of a big week Premium
The Pound Sterling (GBP) changed course against the US Dollar (USD), with GBP/USD giving up nearly 200 pips in a dramatic correction.
Bitcoin: The worst may be behind us
Bitcoin (BTC) price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.
Three scenarios for Japanese Yen ahead of snap election Premium
The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.
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