Do NOT repeat other’s mistakes!!!
The majority of people profit only by their own mistakes. And I am not an exception more often than not.
But when it comes down to your money and your well-being (especially the well-being of your family) you have no the right to make a mistake. That’s why I decided to familiarize with advices of other traders. Now I want to impart the most important and useful (in my opinion) advices to you.
1. You should focus on trade on long-term positions, because they usually are more profitable. The mistake of many traders is that they try to catch short-term market fluctuations and overlook the main price development.
2. If you believe that exist long-term trade possibilities, do NOT try to wait till somewhat better price to open a position.
3. The opening of any long-term position always should be well planning and thought-out. You cannot do it without cogitation. Do not give in to impulse.
4. Place orders, determining its levels with the help of daily analysis. If the market doesn’t approach to wishful level of opening deal write down the trade idea. Then revise it daily until the position will be opened or trade idea stop to seem attractive to you. Incapacity to conform to this rule may lead to omission of good penny-worth. It’s a wide-spread situation: traders remember about trade idea when the market has already gone from supposed price of the beginning of deal. And afterwards it would be difficult to consummate transaction at worse price.
5. If, when you look at graph, you have instinctive impression you should follow it!
6. Fact, that you have missed sizeable part of new trend, shouldn’t hold you back from using it.
7. More often than not use at best instead of limit. It is especially important when you close sacrifice position or open a position concerned with favourable opportunity for long-term deal.
8. Never increase a position close to initial entry point to trade after the market has already been on favourable for your position territory and has return to initial prices.
9. Decide about the level of safeguard stop at the moment of opening of position.
10. Disaffiliate with any deal if newly formed price models or market behavior are opposite to the direction of your position (even if the stop point doesn’t reach).
11. In any case immediately close the deal the moment its initial suppositions are getting broken.
12. If during the first day of your trade it become obvious, that you are fundamentally not right you should immediately close the deal.
13. Do not relax while having the open position.
14. Fight against temptation immediately return to the market after fixation of losses during the fulfillment of safeguard stop.
15. When trade is bad:
• Reduce dimensions of position;
• Use close safeguard stops;
• Do not hurry with the opening of new positions.
16. When trade is bad reduce risks. Liquidate unprofitable positions instead of profitable ones.
17. Do not change methods of trade after profit earning.
18. Avoid holding too many open positions at the moment of publication of important economic data or governmental statistics.
So, today this is all advices that I have found, but I will try to search more…:)