Although yesterday the market gave a false breakout, and may think the market may close lower. Think again, the very fact that the market will take into considerations of the human element, which is emotions. "But i thought trading in the market shouldn't be emotional?" Yes! Correct! But remember today is Friday and tomorrow is Saturday. People wants to enjoy their weekend spending in the restaurant, shopping, relaxation and others. However, the market may give a delay in selling. Perhaps until next Monday? Also take note that if the opening day of the week starts low, tuesday and wednesday normally follows Monday accordingly.
After trading for quite sometimes on paper, i notice that the number of account that i blew are beyond 10 x 3k. Perhaps it is time for me to relook at my rules. I decided to list them down so that when I will take the effort to work on them.
My Forex Trading Rule
1. Max of 0.4 x 3 position. No more than 3 position for averaging.
2. At channel degree, highest or lowest,measure the previous pivot point and buy/sell at that level. DO NOT AVERAGE AT THIS LEVEL. set a stop lost of max 25 pips.
3. Analyse the overall trend first. This is for determine whether the overall position will be long or short.
4. Should I be wrong consecutively for >5 times, Stop trading.
5. For each trading day, if the profit exceed 20%. Consider resting for the day.
6. When trading, be focus. Do not youtube, facebook or surf the forums..... Be discipline!
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