This is my intention, we shall see over time, how well I can stick to this (discipline is a weakness of mine, I will need to feed that beastie) :
1) Have a staking plan
2) Pick your race/game carefully
3) Know when to take profit / stop losing
4) Keeping Discipline
The Staking Plan
Basically, look for trading gaps where a stop loss of 100 credits and a limit (take profit) of 250 credits follows a trend and stays within resistance and support lines :-->
Pick your race/game carefully
The amount of market information out there is, well overwhelming and in many cases bewildering. I don't appear smart enough to fathom everything about everything when it comes to the impacts of world events on various countries currencies. So some simple rules :
- Only work with 5 or 6 currency pairs, so I can become intimiate with them and also achieve some reasonable and prudent level of research.
- Dont place orders in the first 4 hours of the market (Monday 10am till Monday 2pm) as the market volatility and predictability is all over the place. Equally avoid the last 4 hours of trading as profit taking etc etc can kick in.
- Dont try to be cleverer than all the clever people, there are 100 million people all trying to guess which way the market is going, there is no need trying to be the first one, back a trend, dont buck a trend.
- Its not a game...its a living (or thats the dream) so dont try to WIN back loses, just follow the plan
- If I lose more than 300 credits in a day I stop.
- If I make more than 500 credits in a day I stop
Part of the reason for blogging this is to force discipline on myself by washing my laundry in public.
However life is meant to be fun, we need some carrots with our sticks....not that Id chase a carrot...
Thus if I end up +600 credits on one day, I will allow myself 1 extra order, with a much higher 'limit' on it, but the stop loss MUST keep me above 500 credits and not be over 150 credits.
If that order succeeds at limit then I will allow myself to put another order in, but the stop loss must not be greater than 150credits.
