1. Patience
You may have to wait around a while for conditions to be ideal for you to open a trade. It is awfully alluring to jump in on something that looks good but doesn’t fit your system. Develop patience so that you can avoid those random trades.
2. Stop Losses
Knowing the simple way to cut your losses at the perfect moment is important. Never hang on to a losing trade beyond a certain point which should be figured out before the trade is opened. It’s a fragile matter finding the balance between having a stop loss that is caused by small fluctuations, and holding onto your trades for so long that you make a huge loss. It will change for each system, so take care you get this right before you begin trading a new system for real .
3. Impassivity
It is important to remain calm under strain, because there’ll be a lot of that. Do not allow your trading to be inspired by fear, panic or dreams of massive profits.
4. Realism
Forget what you can see in adverts about doubling your money each month. A profit goal of between 5 and 10% every month is a superb return on any investment, and will keep you out of the most dangerous situations.
5. Records
Ultimately, keep records of your trades. Yes it is tedious, but if your trading records are in depth they can let you take back control whenever things appear to be going wrong. Having results to analyze gives you a massive advantage in currency exchange trading.