Rules of Trading

Disclaimer
We do not verify any of the Forex trading systems, signals and software that's offered on this sight. All trading systems and websites are used at your own risk. We strongly recommend you verify any systems or websites that are on this website.

The risk of loss in trading futures and options can be substantial. Futures and options trading may not be suitable for everyone. Therefore, you should carefully consider the risks in light of your financial condition in deciding whether to trade. You may sustain a total loss of the initial margin funds and additional funds that you deposit with your brokers to establish or maintain a position in the commodity futures market.

Forex Trading may not be suitable for all individuals. Forex Trading may result in substantial losses! Please consult your financial advisor.

The Simple Rules of Trading

Trading, whether its Stocks, Futures or Forex is the same. Trading is very simple; the biggest problem to making money when you trade is that human nature gets in the way. When you should be holding the winning trade you are usually getting out of the trade to soon, and when you should of gotten out of the trade you find yourself still in the trade, praying that it will come back to break even and if the trade comes back to break even you will never do that again.

The three main parts of trading is understanding how to read charts, money management and keeping the human emotion out of the trade.

There are many different types of charts and indicators. You can buy books on charts and indicators or you can find more then enough information about charting on the internet. Learn as much as you can about charting and indicators and then get some paper based charting programs and practice trading the markets you choose; whether its Stocks, Futures or Forex. The more experience you have following the charts and the market the better you will.

Money management is another key part of trading. How much money do you have in your trading account and how much are you willing to loose on each trade. Even though you can get a lot of leverage with your money, from Stocks that are 4 to 1 intraday, Futures that can be 10 to 1 intraday and Forex which can be up to 200 to 1 intraday, never risk more then ten percent of your total trading account on any one trade. The name of the game is staying in the game and if you loose all of your money on one trade or 25 percent on four trades the game is over. Its better to get out of a losing trade then stay in the trade praying it will come back to break even. Most people that do this are so happy it came back to break even, they get greedy and stay in the trade looking for a profit when they should have been out of the trade, and now watch the trade go from losing, to break even to back to loosing again. This is very bad money management.

The last key part of trading is controlling your emotions. I've seen people paper trade and make money every day and when they start using real money they loose money every day. The more you can keep your emotions out of trading the better you are. There are a number of books on trading and controlling your emotions and I strongly recommend you read at least a few books on this topic.

Ok, so once you feel you at least understand the three simple rules of trading and you spent hours following the markets using the information you learned about charting and indicators and you think you understand the money management rules and you think you can control your emotions, you are ready to start trading with real money.

One out of every ten people that attempt to trade survives, so the odds are stacked against you. Start out small and take you time. If you miss a trade there will always be another trade for you to try to make money on.

Find a good trading platform and the cheapest rates you can find as long as you still have good service and support and you are ready to start trading.