into five Dos and five Don’ts.
Dos
1. When trying out a new trading strategy, always test it in a demo account, or with
a small amount of money, before you commit more money to it.
2. Always keep a record of each of your trades, with details of: why you got in,
how you got out and why it turned out the way it did.
3. Have a personalised trading plan and update it as you learn from the market.
4. If you are unsure of a trade, stay out. It is better to miss an opportunity than to
have a loss.
5. When trading, keep up-to-date with both the fundamentals and technicals
affecting the market. A trader in the dark is a trader in the red.
Don’ts
1. Don’t trade with money you can’t afford to lose! It will affect you emotionally,
and you will most likely lose it to irrational trading.
2. Don’t follow someone else’s trading advice blindly. Always know why you are
getting into a trade, and how you are going to get out of it.
3. Don’t be concerned about being right. Just be concerned about being profitable.
4. Don’t over-leverage. Chances are that your account will be decimated before
you can recoup your losses and go into profit.
5. Don’t revenge-trade the market. Vent your frustrations elsewhere after a loss.
Source: 7 Winning Strategies for Trading Forex: Real and Actionable Techniques for Profiting from the Currency Markets
