Traders should never assume they know all they need to know to trade the markets. A successful trader is always learning and evolving and never stops trying. Some traders think once they have a strategy they like they just need to use that all the time. The markets are dynamic and a static trader is unlikely to make a succesful trader.
Below I have listed some simple rules every dynamic trader should have implemented in their trading plan.
- Never chase trades
- Don't overtrade
- Always use a stop loss
- Never average down
- Know what news is due out and when
- Let price decide your actions
- Keep a record of your trades
This is not a complete list of trading rules but certainly is a starting point. Add to the above list and create your own trading plan which you should follow without deviation.
Here are 5 Things dynamic traders should not use:
- Emotion
- Revenge
- Anger
- Greed
- Fear
It is easy to get caught up in the emotions of a trade or after having a bad loss and wanting to take revenge on the market. Feeling angry after a loss, letting greed take over in a trade or fear of losing money is all part of trading and something each and everyone of us hasnexperienced. Learning to deal with these is what is known as dynamic trading.
Every good trader will keep good records. Make sure you have organized an up to date records of your trades. This is a big part of evolving and your best form of learning.
FX Analyst
Anne Chapman
