The 29 Golden Trading Rules

Posted by singapore trader report on January 21, 2009 under Currency Trading | Be the First to Comment

by Singapore Trader Report

29 Stock Market Trading Rules and 6 Guidelines

Stock Market Trading Rules

When you start out trading it is important that you set up some rules and guidelines for how you are going to trade. As without rules and guidelines you are trading without a goal in mind. Over 90% of traders will end up going broke and not making money from the market, and the one of the key reasons is because they have no rules. Here are some Rules to get you started.

At the CFD FX Report we are big believers in these rules and we make sure that we are continually educating our members on becoming better traders.

If you are looking for a great Forex Broker that can help you implement these rules then please feel free to contact us support@cfdfxreport.com

1. You should never over-trade- Don't trade for trades sake
2. Make sure that you never risk more than 10% of your trading capital in a single trade, protecting your capital is very important. There will be more trade opportunities
3. Ensure that you never trade without protective stops and use trailing stops
4. Don't cancel a stop-loss after placing the trade- otherwise get out
5. Never average down on a losing trade
6. When you get into a profit never let it run into a loss.
7. Never buy or sell just because the price is low or high, as what is high and low
8. Never try to guess tops or bottoms- otherwise go to the casino and pick black or red
9. You should never limit a profiting trade, instead move your stops to guarantee a profit- ideal trading is as soon as you get into a good profit at least ensure a break even
10. You should never close a position to get out of the market because you have lost patience or get in because you are anxious from waiting.
11. Please never hedge a losing position.
12. Never change your position or close a trade without a good reason.
13. Never follow a blind man's advice, everyone has trading sure things. Use systematically approach
14. Make sure that you never enter a trade if you are unsure of the trend. Never buck a trend. Remember the rule TREND IS YOUR FRIEND
15. Try to avoid scalping for small profits and taking large losses if you scalp you need tight stops
16. Avoid trading after long periods of failure- take a break, reassess and reset your rules
17. If you have a great run don't keep increasing your trade size
18. Avoid getting in wrong or getting in right and out wrong, making a double mistake.
19. Always identify strong support/resistance levels.
20. Always lock in a profit at predetermined increments on profiting trades.
21. EVERY trade must have stop losses
22. Always distribute your risk equally among different markets.
23. Don't be a one trick pony, make money from both sides of the market
24. Always reduce trading after the first loss; never increase.
25. Always cut your losses short and let your profits run.
26. When in doubt, get out. Do not get in when in doubt.
27. Only trade active markets- illiquid markets will leave you thirsty
28. Only pyramid trades that have a strong trend and should be accomplished once the price has crossed support/resistance.
29. Profits from a successful trade should be kept for future trade margins or put somewhere else, spread the risk.

Some Further Guide lines

Who are you? Are you a risk taker? Can you afford to lose money? First thing to do is to understand you the type of trader that you are, whether aggressive or conservative, long-term or short. If you are short term and trade goes bad, cut it, don't become a long term trader, otherwise you buying and hoping, not even buying and holding. Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss. Understand why a win/loss occurred and how you could of made the trade better. Consistency is the key to trading success, without it you have nothing. Your judgment is the only concern, do not let outside factors affect the way you trade. Not everyone can be a trader, deem yourself worthy if given this opportunity.

Most importantly have fun and stick to your rules.

Happy Trading

CFD FX REPORT is a real time tool for clients with an interest in the trading of stocks, indices and commodities globally. CFDs (Contracts For Differences) are one of the worlds' fastest growing trading instruments that allows clients to profit from a rising and falling market. The CFD FX Report is a company comprising of expert traders that analyze the market daily and are able to make recommendations for the following day trades based on this analysis. The CFD FX Report is released everyday at 6.30 p.m. (Singapore time) for review by the clients for the next trading day.

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CFD FX REPORT Is the Report that helps traders find brokers, gives trading ideas, daily updates, the stock market and forex report that traders use

Here’s How People Make Money With Forex

Posted by Sam Lockwood on January 7, 2009 under Currency Trading | Be the First to Comment

by Sam Lockwood

Forex trading has become one of the fastest growing areas of finance. It's something that people will have as a hobby or a job as it offers a great way to make some money. If you have the right mindset, it can be a highly profitable market to invest in.

The Forex market relies on the fluctuations of currency in regards to their purchasing power. This means that there are a great number and variety of factors has an effect on the fluctuations. Things like the rates of bonds, the political bills even the action of buying and selling currency can affect its value.

For example, if you are looking at the Euro to dollar exchange and the Euro is worth $1.27 and you sell it for $1.29 you have made about 2 cents on the transaction, this adds up to about 1% of the overall transaction.

This may not seem like much but if you do this with every transaction, you can easily make 3-5% of the total transactions for the span of a week. Again, this may not seem like much but as you increase the number of trades, the amounts of the investment and the dividend it can compound to make a substantial income stream.

Successful traders play the fluctuations in the market and know which currencies to buy and sell at a given time.

What Does a Forex Trader Use To Determine a Good Trade?

When you look at the currency market, there are a number of different factors, which tie in directly to the value of a currency. Many of these factors deal with supply and demand. For example, the US dollar is tied to the interest rates and the bond rates set out by the Federal Reserve and the treasury. In Canada, it is primarily timber and oil when the demand or value of these things changes the purchasing power of the currency changes as well.

There are unlimited resources to help provide you with the information that you need to make investments on the Forex market. The more you research the better your chances are of maximizaing your gains and avoiding any significant losses.

Traders usually restrict themselves to a few pairs of currency and pay special attenton to them. They try to become specialists in these currencies in order to increase their profit potential.

Many traders subscribe to research services that can help to provide you with information on the various aspects of the market. However, doing this can also leave you reliant on the judgment of other people.

Most people who trade on the Forex market are going to make use of things called robots. These robots are programs, which are designed to pull market information for the trader and signal that trader when opportunities present themselves as potentially profitable.

For those looking to get into forex trading, especially if they are new to the market, should take the time to consider this type of program.

Just as with any other application there are a number of options to choose from so there are a few things to keep an eye out for when picking the program that is going to work best for you.

The first step is to make sure that there is a demo program or option available to allow you the chance to check out the program out prior to placing an actual cash investment. Usually this should run a week or two weeks in order to get a good view of how the program operates.

The second thing to look for is a money back guarantee. It is important to ensure that the program works and is easy to use. Companies that know their product works will have no problem giving a guarantee.

The best way to choose is to purchase, test and return if it does not work for you.

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If you want to know how to trade forex, you can find lots of information online. Click Here for a free trial of one of the top forex trading programs which make people money right away in the forex market.