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5 Guidelines for Evaluating Your Trading as a Business |
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| Publisher: |
Leroy Rushing |
| Date: |
2008-04-17 |
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Trading is just as much of a business as any other industry. Treating what you do as a business will help you improve your trading, allowing you to trade with less emotion. Constantly set trading goals to work towards, just as you would create goals for any business. Here are a few tips to improve your trading as a business, helping you reach your trading goals.
1. Your Trading Plan is Your Business Plan - Your complete trading plan is much like a business plan. Included in your trading plan planner should be a concrete statement on how to generate profits and your specific strategies. Much like your own business, you should have a plan in place to reach your trading goals. Setting swing or day trading goals is critical to producing consistent profits and staying “in business.”
2. Profit Loss Sheets - Bookkeeping may come second to technical analysis and e-mini futures, but it is just as important as day and swing trading itself. You should prepare a profit or loss statement every month and track where you’ve made money and lost money. If you’re finding yourself losing money in the 10 am – 2 pm period of the trading day, you might consider closing up shop during that time.
3. Have a Routine - If you were going to the office every day, you wouldn’t go in sweatpants and a t-shirt. You should be dressing the way you want to perform. Getting up early and getting ready just like you would for any other occupation will keep your mind in the game and bring in consistent earnings. You need to treat yourself the same as you would with a business. Set a trading goal for each day and strive to reach it with profitable trading strategies.
4. Use Profits to Grow - Businesses need more capital to expand and make more money and so does your portfolio. Spending a few extra dollars on advanced trading techniques, tools, and strategies will help you be a better trader. Mark each expenditure against the value of your trading portfolio as you would against the bank account of your business. Each investment is an investment in yourself, and it is also tax-deductible, just like any other business expense.
5. You’re Buying and Selling a Product - Shares of stocks are products just like an article of clothing or a pound of carrots. Trading is buying and selling a stock for a profit, much like owning a business is buying and selling a product for a profit. Think of each stock like a product; you might have to have “sales” to get rid of extra holdings or to cut losses, but it is all a part of running a business.
Organizing your trading life like your business increases your probability of market success. When you take time to manage your business, invest in your business, and treat yourself professionally, these are the tools to make consistent profits.
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5 Guidelines for Evaluating Your Trading as a Business Keywords: |
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Day Trading Swing Trading Trading Plan Planner Tools To Make Consistent Profits Profitable Trading Strategies Complete Trading Plan 5 Guidelines for Evaluating Your Trading as a Business Day trading Finance |
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Related Article:5 Guidelines for Evaluating Your Trading as a Business |
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Stella Miller |
2007-08-07 |
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Title: Forex Trading Systems
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Through the method of Forex trading the dealers can earn quick profits and with the changes in the economic conditions the investors get attractive opportunities to invest. Although there are no fixed guidelines for the Forex trading but the specialists have their own views and observations at the same time not deviating from the main objective. In simple terms it can be said with the method of Forex trading it regularizes the doubts and queries of the investors to invest more. Every entry is exclusively administrated with some set of guidelines which is only affected by any changes in the market.
It is no different from other methods of trading, as here also there are risks and rewards. The only thing that really matters is that how much capital you put at risk to receive significant rewards. Before investing you should also make a survey of the prices prevalent in the market, various market behaviors.
Experts are of the opinion that Forex trading is a combination of both science and art. It is an art because it includes a defined practice, set guidelines and theories. Having appropriate knowledge and with the assistance of the technology is very important for every individual life, as you have to take important decisions in your life.
Mechanical trading methods are a part of Forex trading and which assists you in making significant judgment. With the input of any data the system makes provides you with the suitable solution for it.
With the advancement of the technology the advanced computer editions of these mechanical methods are known as ‘black box’ processes. They are very smart that is the reason these are known as mechanical methods. With this just switch on your computer and it will revise all the trading suggestions and will straightaway make an order to the dealers.
Even a nanosecond matters a lot in the trading of five minute charts, so no doubt conducting fast operations is a must in the Forex trading. The base of the Forex trading relies on moving averages. The major and the most superior systems employ the mixture of the cost and the volume. Stochastic is put into use by the most efficient systems these are mathematical methods for non-linear science.
Forex trading systemsare reactive in nature as under the changes in the market the system presumes that it will stay like this only. It takes these decisions through the systems that are planned in the system. There are Black Boxes that calculate a major collection of markers in accordance to increase the confidence of the action proposal.
In the stock market the dealers those who purchase and sell breakouts they are known as momentum players. Does that system will be successful or not or will produce a loss, the formulas of the investors think that this will be continue.
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Markus Heitkoetter |
2008-04-24 |
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Title: Making Sure Your Trading Plan Works:The Ten Power Principles (Part 1)
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Having a trading plan is like having a solid blueprint to build your home, or having a map when traveling to a new location. Even a professional trader won’t survive in the markets without a good trading plan. And once you’ve defined your goals and created your trading plan, you need to make sure it really works. So far, everything might look great, but how can you be sure that the system works when you start trading it with real money? Evaluating a trading strategy is easier than you think. You just need to use the 10 Principles of Successful Trading Strategies. Below you’ll find numbers 1-5. Principle #1: Use Few Rules – Make It Easy to Understand It may surprise you that the best trading systems have less than ten rules. The more rules you have, the more likely that you’ve "curve-fitted" your trading strategy to past data, and such an over-optimized system is very unlikely to produce profits in real markets. It's important that your rules are easy to understand and execute. The markets can behave very wildly and move very fast, and you won't have time to calculate complicated formulas in order to make a trading decision. Think about successful floor traders: the only tool they use is a calculator, and they make thousands of dollars every day. Principle #2: Trade Electronic and Liquid Markets I strongly recommend that you trade electronic markets, because commissions are lower and you receive instant fills. You need to know as fast as possible if your order was filled and at what price, because you plan your exit based on this information. When trading electronic markets, you receive your fills in less than one second and can immediately place your exit orders. Trading liquid markets means you can avoid slippage, which will save you hundreds or even thousands of dollars. Most futures markets, all forex currency pairs, and the major U.S. stock markets are trading electronically. Principle #3: Have Realistic Expectations Losses are part of our business. A trading system that doesn't have losses is “too good to be true.” Recently, I ran into a trading system with a whopping winning percentage of 91% and a drawdown of less than $500! When I looked at the details, though, it turned out the system was only tested on 87 trades and – of course – it was curve-fitted. If you run across a trading system with numbers too good to be true, then it's probably exactly THAT: too good to be true. Usually you can expect the following from a robust trading system: 1.) A winning percentage of 60-80% 2.) A profit factor of 1.3-2.5 3.) A maximum drawdown of 10-20% of the yearly profit Use these numbers as a rough guideline, and you’ll easily identify curve-fitted systems. Principle #4: Maintain a Healthy Balance Between Risk and Reward Let me give you an example: if you go to a casino and bet everything you have on "red," then you have a 49% chance of doubling your money and a 51% chance of losing everything. The same applies to trading: you can make a lot of money if you’re risking a lot, but if you do, the risk of ruin is also high. You need to find a healthy balance between risk and reward. Make sure your trading strategy is using small stop losses and that your profit targets are bigger than your stop losses. The perfect balance between risk and reward is 1:1.5 or more – i.e. for every dollar you risk you should be able to make at least $1.50. Principle #5: Find a System That Produces at Least Five Trades per Week The higher your trading frequency, the smaller your chances of having a losing month. If you have a trading strategy that has a winning percentage of 70%, but only produces one trade per month, then one loser is enough to have a losing month. In this example, you could have several losing months in a row before you finally start making profits. In the meantime, how do you pay your bills? If your trading strategy produces five trades per week, then you have on average 20 trades per month. If you have a winning percentage of 70%, then your chances of a winning month are extremely high. And that's the goal of all traders: having as many winning months as possible! Author’s Bio: Markus Heitkoetter is a professional day trading coach and author of “The Complete Guide to Day Trading.” In this book, he lays out a simple, proven system for trading success. He covers it all, from the basic essentials to the actual process of making money in the markets. Visit www.thecompleteguidetodaytrading.com to learn more.
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Han Ming |
2008-02-11 |
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Title: Forex Trading Robot Vs Forex Trading Platform
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If you plan to invest your money through FOREX trading robot, you need a big sum money to start. Some FOREX trading robot charges you around $65 per month to use their program. Other than that, minimum investment of $10, 000 is required to participate in forex trading robot. However, FOREX trading robot can reduce risk and improve overall system performance. So, it is up to you to decide by evaluating the pros and cons. If you think forex trading robot is not suitable for you, you can always go for FOREX trading platform which you will trade independantly without any help. You'll have to monitor the trading yourselves. Here are 5 tips to choose a platform. 1. You must get large FOREX trading platform instead of the small ones. Many of the better online FOREX trading platforms exchange information and have great tools and resources to help you trade. And generally they give all these tactics to trade at no cost. Most FOREX trading platforms are also in Windows or Java system; some even have both versions. 2. There are many important factors you need to know when choosing for a great FOREX trading platform. Prefer FOREX trading platform online that enables users to start immediately. If likely, there will be no download of soft wares necessary and you can execute the trading immediately without any obligation to learn the features and functions of these soft wares. 3. Prefer a FOREX trading platform that gives you the possibility to Freeze the Buy or Sell rate that you see for few seconds. That means that the rate you see and froze is the rate you will get if you want to make it a deal. During those "FREEZE" seconds, the FOREX market could change, however - you are guaranteed to get the rate you have frozen, in case you want to get the deal. But under uncommon conditions, this will not be guaranteed. From what you have read so far, determine if this article has answered any of the questions that you had on this complicated subject. 4. Make definite sure you elect a good FOREX trading platform. Some platform has a lot of buried expenses and charges you high pips when you buy a pair. So, you'll spend money before you even gain it. 5. Also, some platform has features and functions that are very hard to understand. You'll take masses of time to learn about these things. These will generally take you days or even weeks to learn all these. Choose FOREX trading platform wisely before you begin trading or you'll lose both of your money and time. Discover how this platform can save both your time and money. Get tons of FREE tools and resources worth hundreds of dollars. You'll also get a FREE EBook that give you tips on trading forex. Visit Forex Trading Robot and join us to get all these for FREE. Please be reminded that trading forex involves risks.
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Ricky Lim |
2007-07-08 |
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Title: Best Forex Trading Education
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There are many forex trading courses and educational material that a person can find online. However how does someone go about finding the best Forex trading education information? Certainly there are huge amounts of information that will educate you about Forex trading, but not all of it will help you to achieve your goals of making a profit rather than losing. Below are some guidelines which should help you to find the best forex trading education course Point 1 - Avoid Day Trading Systems Many people when starting out in Forex trading will be enticed into thinking that the best way of making money is through day trading. Certainly if you were to ask a person who is selling a Forex trading course for details relating to their real time track record with regard to profits relating to day trading they will not be able to provide one to you. So if you are looking to produce an income from your trading then do not waste your time on day trading. Point 2 - Real Time Profit Records When buying any sort of forex education course, you need to be provided with these records. If a person selling their system does not have confidence in the abilities of their system and are not investing their own monies then why should you. Unfortunately some of these courses being offered online today are from people who have either never traded in their lives or have failed when they have used the system themselves. Point 3 - Understand It Once you find a forex trading system which either has a track record or is willing to show their real profits then there are some other things which you will need to take into consideration. It is important that you learn everything you can about the system in question so that you understand it completely. Unfortunately if you have no understanding of how the system works then you will not have the confidence to trust in it and follow the system through to a likely conclusion if you start to suffer losses. By keeping these points in mind, you will find the best Forex trading education that is suited to your kind of personality. There are literally hundreds of places on the web that can offer you an education as well as free advice on Forex trading so do some investigating and you will soon find one that is ideal for you. Ricky Lim runs a learn forex trading online site for beginners at www.learn-forextrading.net. Visit his site today for more forex tutorials and articles.
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William |
2008-05-04 |
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Title: Tips on starting a new trading business
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Trading simply means the business of finding a buyer and corresponding seller of a product and being the middleman to the exchange. You will earn a profit for the difference in the price at which you buy and the price at which you sell. It is becoming a booming business online with an increasing number of people realizing the vast potential and low investment requirements inherent to the business. However, just as many people find success at a trading business as the number that don’t, so you’d better be prepared to use your smarts and work hard. It is no gold paved highway to easy money, as some people like to think, so keep the following guidelines in mind while starting a new trading business. Reliable source:– You will need to find a solid, dependable and affordably priced source for your product. Since you are working on maximizing the margin, you need to be sure you are not being overcharged by your supplier. Further, test your selected source out thoroughly before starting. Ask for references and talk to the supplier’s other customers, especially irate ones. Make a relationship and use more than one supplier since it is not a good idea to be dependent totally on just one supplier, especially initially. Reliable delivery:– Next you will require a reliable delivery system, either through the supplier’s channel or through your own. Ensure that the system is fairly fool proof. Test it – send yourself a sample of the product. Keep testing from time to time to be sure that the system still works well. Remember that your customers will blame you for any loss, damage or delay so your delivery channel has to be perfect. Legal requirements:– Find out if there are any restrictions on your product of choice. Be sure that you understand the legal repercussions of trading the product and all surrounding paperwork. If there is documentation required, complete that before you begin and in case the documentation is on going, make sure you factor in the costs. Accounting and taxation:– Research in detail all the accounting and tax requirements. Talk to people in the business, accountants, or look it up online. When you form your business plan, make sure you account for all expenses and costs in setting up and running your trading business. Credibility:– Building up your trust factor is essential. Customers and potential customers will need proof of your credibility and it is essential to gain recognition as reliable trading business. This can be established through references or ratings. Make sure that you are perceived as being 100% reliable, since this is absolutely the first and crucial step towards gaining a customer base. Communicate:– Create a network of customers and suppliers to ensure that you are always in the loop for new developments in customer requirements and product information. Maintain a constant interaction with these two groups through email/ mailing lists, newsletters, forums etc. Starting a trading business is not rocket science, but requires effort and common sense, and there is always potential for large profits.
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Ron King |
2008-04-03 |
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Title: Day Trading Skills - Evaluating A Stock For Trading
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Despite the dire warnings by the Securities and Exchange Commission cautioning investors against the controversial yet potentially profitable venture of day trading, people attempt to try and attain day trading skill, and a day trading stock tip is literally worth it's weight in either gold, or dross! The following is some information on learning trading techniques, the risk involved, and tips for becoming a successful trader.
Just what is day trading and how do people learn day trading skill? Day trading is the system of quickly buying and selling stock throughout the day in the hopes to profit from the minute fluctuations in the market for that specific day. Ideally, day trading strategies let investors secure profits from the fractional increases in the market.
Day traders observe a specific set of indicators when determining whether a stock is suitable for day trading. First, the stock must have high liquidity. This means that the stock in question has lots of buyers and sellers. The liquidity allows day traders to speedily buy and then sell stock. Liquidity is based on the volume of transactions on the market, the number of outstanding shares, the total number of shareholders and the number of market makers. Almost all stocks on the NYSE and NASDAQ have a high degree of liquidity.
A day trader also looks at volume individually, in addition to using it as standard for liquidity. To be a candidate for day trading, a stock needs to trade at least 500,000 shares a day. Stocks with 500,000 trades a day or more will allow the day trader to acquire or sell a large amount of stock without greatly altering the price of the stock. Volatility is another criteria in appraising a stock for day trading. The term refers to the actual or expected price movement of the stock. This movement is up or down over a period of time. Day traders study the pattern and volatility of stocks over an individual day. Stocks that change price several times over one trading day are good contenders for day trading. A fluctuation of at least $2.00 per day is recommended.
Finally, a day trader evaluates the price transparency of stock. This term pertains to the ability to collect information on the order flow of a stock. Also called market depth, price transparency helps the day trader calculate just how much money there is to be made on a certain stock. The NASDAQ II quote system offers data on all bids. Day traders who arrange to access the NASDAQ level II quote screens can assess the performance of a stock and ascertain its swing in price.
While these trading practices are completely legal and completely ethical, they are highly risky. Day traders generally buy on borrowed money with the hope that they will procure higher profits through their acquisitions and sales. People who are deemed "pattern day traders" by the NASDAQ and NYSE must have at least $25,000 in their accounts and can only trade in margin accounts. Margin accounts are brokerage accounts in which the broker lends the investor cash to purchase securities. If the value of the stock drops a great deal, the investor is required to deposit additional cash to cover the margin or sell the stock. The SEC warns against day trading and acting on a day trading stock tip, and has taken many steps to inform people of the related risks.
The first few months, a vast majority of day traders suffer massive financial losses and only a handful make it through to become profit-making day traders. For this reason, day traders should only invest money that they can afford to lose. They should never invest money set aside for necessities such as living expenses or second mortgages.
Remember that day traders do not own stocks for longer than a few minutes at most. Stocks are never kept overnight because of extreme hazards of prices changing to the detriment of the trader. Day traders do not invest, rather, they speculate on the movement in price of a stock throughout the day.
There are lots of websites whose sole purpose is to make money from those who seek a day trading stock tip. These websites assure rapid results and sell hot tips to their members for a fee. The sources are generally paid to make these recommendations and are best avoided. Seek the advice of a proven professional, and take plenty of time to discover trading strategies for longer term success. Remember, there is no easy money, and day trading skill is often paid for with enormous stress and cataclysmic losses.
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William King |
2007-08-13 |
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Title: Tips on starting a new trading business
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Trading simply means the business of finding a buyer and corresponding seller of a product and being the middleman to the exchange. You will earn a profit for the difference in the price at which you buy and the price at which you sell. It is becoming a booming business online with an increasing number of people realizing the vast potential and low investment requirements inherent to the business. However, just as many people find success at a trading business as the number that don’t, so you’d better be prepared to use your smarts and work hard. It is no gold paved highway to easy money, as some people like to think, so keep the following guidelines in mind while starting a new trading business.
Reliable source:–
You will need to find a solid, dependable and affordably priced source for your product. Since you are working on maximizing the margin, you need to be sure you are not being overcharged by your supplier. Further, test your selected source out thoroughly before starting. Ask for references and talk to the supplier’s other customers, especially irate ones. Make a relationship and use more than one supplier since it is not a good idea to be dependent totally on just one supplier, especially initially.
Reliable delivery:–
Next you will require a reliable delivery system, either through the supplier’s channel or through your own. Ensure that the system is fairly fool proof. Test it – send yourself a sample of the product. Keep testing from time to time to be sure that the system still works well. Remember that your customers will blame you for any loss, damage or delay so your delivery channel has to be perfect.
Legal requirements:–
Find out if there are any restrictions on your product of choice. Be sure that you understand the legal repercussions of trading the product and all surrounding paperwork. If there is documentation required, complete that before you begin and in case the documentation is on going, make sure you factor in the costs.
Accounting and taxation:–
Research in detail all the accounting and tax requirements. Talk to people in the business, accountants, or look it up online. When you form your business plan, make sure you account for all expenses and costs in setting up and running your trading business.
Credibility:–
Building up your trust factor is essential. Customers and potential customers will need proof of your credibility and it is essential to gain recognition as reliable trading business. This can be established through references or ratings. Make sure that you are perceived as being 100% reliable, since this is absolutely the first and crucial step towards gaining a customer base.
Communicate:–
Create a network of customers and suppliers to ensure that you are always in the loop for new developments in customer requirements and product information. Maintain a constant interaction with these two groups through email/ mailing lists, newsletters, forums etc.
Starting a trading business is not rocket science, but requires effort and common sense, and there is always potential for large profits.
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2007-07-23 |
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Title: Money Management And Forex Trading
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Money management is an essential and necessary part of Forex trading. There are a lot of mistakes that Forex traders make, and not following their own money management system is one of them. Listening to other opinions can lead to some costly mistakes, and unless the opinion is a business opinion from a company or government that you trust, then do not factor it into your trading. Set your own guidelines for trading, and stick with them. Trading on opinions, whether they are your own or another person's, can be a very costly mistake. Make your own evaluation based on all the facts that you know, and then do not let opinion sway your trading tactics.
Overtrading is another common money management mistake in the Forex market. This trading does not have clearly defined trading objectives, the sole purpose is to make more money. To avoid this mistake, make sure that every trade is broken into definitive goals, and that these goals are acheived before other positions are added. Very few traders can successfully manage multiple positions in a variety of trading markets.
Overconfidence is a big mistake when it comes to money management and the Forex market. This is caused when a trader has or thinks they have special or inside information. These hot tips are sometimes wrong, and when this happens large amounts of money may be lost because of this. The way to avoid this is to avoid being confident in any rumors or special information you may have. Managing your money means taking measures to preserve it as well.
Preferential bias can exist among Forex market traders. This happens when they only see or hear what they want in relation to the preferred trade. This can cause a trader to ignore the actual activity of the Forex market in preference of what they want to happen. It is important to look at each trade objectively and do not become set in cement with your opinion. Do not ask friends or family for their opinions, just go with what you know.
Money management and Forex trading can be complex and complicated. Once you set your money management guidelines, make sure that you follow them. Avoid listening to rumors and opinions once you start trading. Avoid overtrading, and make sure each trade has clearly defined trading objectives. Make sure that you are not overconfident. The most important thing in money management with Forex trading is to try and avoid preferential bias. By following these tips, you will be able to manage your money and investments better.
Copyright © 2007 Joel Teo. All rights reserved.
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William King |
2007-03-26 |
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Title: Tips on Starting a New Trading Business
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Trading simply means the business of finding a buyer and corresponding seller of a product and being the middleman to the exchange. You will earn a profit for the difference in the price at which you buy and the price at which you sell. It is becoming a booming business online with an increasing number of people realizing the vast potential and low investment requirements inherent to the business. However, just as many people find success at a trading business as the number that don’t, so you’d better be prepared to use your smarts and work hard. It is no gold paved highway to easy money, as some people like to think, so keep the following guidelines in mind while starting a new trading business.
Reliable source:–
You will need to find a solid, dependable and affordably priced source for your product. Since you are working on maximizing the margin, you need to be sure you are not being overcharged by your supplier. Further, test your selected source out thoroughly before starting. Ask for references and talk to the supplier’s other customers, especially irate ones. Make a relationship and use more than one supplier since it is not a good idea to be dependent totally on just one supplier, especially initially.
Reliable delivery:–
Next you will require a reliable delivery system, either through the supplier’s channel or through your own. Ensure that the system is fairly fool proof. Test it – send yourself a sample of the product. Keep testing from time to time to be sure that the system still works well. Remember that your customers will blame you for any loss, damage or delay so your delivery channel has to be perfect.
Legal requirements:–
Find out if there are any restrictions on your product of choice. Be sure that you understand the legal repercussions of trading the product and all surrounding paperwork. If there is documentation required, complete that before you begin and in case the documentation is on going, make sure you factor in the costs.
Accounting and taxation:–
Research in detail all the accounting and tax requirements. Talk to people in the business, accountants, or look it up online. When you form your business plan, make sure you account for all expenses and costs in setting up and running your trading business.
Credibility:–
Building up your trust factor is essential. Customers and potential customers will need proof of your credibility and it is essential to gain recognition as reliable trading business. This can be established through references or ratings. Make sure that you are perceived as being 100% reliable, since this is absolutely the first and crucial step towards gaining a customer base.
Communicate:–
Create a network of customers and suppliers to ensure that you are always in the loop for new developments in customer requirements and product information. Maintain a constant interaction with these two groups through email/ mailing lists, newsletters, forums etc.
Starting a trading business is not rocket science, but requires effort and common sense, and there is always potential for large profits.
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Nofie Iman |
2006-08-28 |
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Title: Forex Trading Guidelines
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There are some guidelines you must read before entering foreign exchange market. Following these guidelines will make you a better prepared forex trader.
1. Plan your trades
Plan your entry/exit to the market, plan when you will sell for losses, plan where your maximum profits will be. Professional trader must be discipline.
2. Market trend is a friend
Don't ever argue over the trend. When the trend is up go for a buy and when the market trend is going down then go for a sell. You'll get no losses as long as you follow the trend.
3. Focus on your capital
This is the most important, do not be greedy considering your capital is on the open. Use only 10%-30% of your capital. Don't exceed 50% of your capital, because you can't retain the market ups and downs and you will in the margin.
4. Know when to stop losses
If you made a mistake in the analysis, sell it, and let it happen. Don't hold on a false hope that the price will go up. This false-hope condition can cause a very great loss. When you re-enter the market, make sure your stop-loss position, and when you have to let your money go to take your losses.
Just like the other, in forex you'll win and you'll lose, but don't lose till you're broke.
5. Take up gains when the trade is going up
Before you enter the market, decide how much profit you will gain. When you enter the gain you wanted, close your position. Just let the price wanders around and don't fall on false hope.
6. Don't be rational with your feeling
The most common enemy of trader is greed and scare. Don't let this two overrule you or be ready to have -$100 from $100 in your account. Professional trader won't ever show his emotion, you won't even know whether he's taking profit or losing money just by the look in his face.
7. Don't trade because of signal from a friend or broker.
Trading fall on your own analysis, signal is only an opinion, don't make signal your main concern.
8. Make a note
Write things you buy and sell, and write down why it had to be executed. When you accomplish or fail, look up your notes again. Your trading skill will develop far better.
9. Don't enter the market when you're in doubt
When you don't know where you're going, try to sit quite and analysis until you are sure. Stand back usually is the best way.
10. Don't exceed your capabilities in trading
In a single moment, having 3-5 position is normal, not more, cause opening up position will blur you and lose control and your feeling will rule your logic. For beginners try to play only with a pair of currency.
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