Page 12 - Module 6 Costly mistakes

Module 6 – How to avoid costly trading mistakes

▪ Don’t tell the chart what you are going to do, let the chart tell you what you should do.
▪ Don’t let your greed exceed your need.
▪ Create a plan and trade your plan.
▪ When you least expect it, the market will turn volatile.
▪ If the market looks like it will go down, it will go up.
▪ If the market looks like it will go up, it will go down.
▪ Don’t trade in a thin market! Make sure there is plenty of volume.
▪ Trade in control. Not out of control.
▪ Cover your losses and the profits will take care of themselves
▪ Your emotions will be tied to your margin account.

14. a final thought

Put two rookie traders in front of the screen, provide them with your best high-probability set-up
and for good measure, have each one takes the opposite side of the trade. More than likely, both
will wind up losing money. However, if you take two pros and have them trade in the opposite
direction of each other, quote frequently both traders will wind up making money – despite the
seeming contradiction of the premise. What’s the difference? What is the most important factor
separating the seasoned traders from the amateurs? The answer is money management.

From the table below money management is crucial if you want to benefit the rewards of a lucrative
forex trading career.

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