provided by Dennis Gartman, Editor/Publisher of The Gartman Letter

1. Never, ever under any circumstance add to a losing position…. not ever, never!. No more need be said; to do otherwise is illogical and will absolutely lead to ruin… Count on it and count on it again!

2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides immediately when one side has gained the upper hand.

3. Capital comes in two varieties: Mental and Actual. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital .

4. The objective is not to buy low and sell high, but to buy high and to sell higher. We can never know what price is “low.” Nor can we know what price is “high.” We can, however, have a modest, reasonable chance at knowing what the trend is and acting upon that trend.

5. In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, however.

6. “Markets can remain illogical longer than we can remain solvent,” according to our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are enormously inefficient despite what the academics believe.

7. Sell markets that show the greatest weakness, and buy those that show the greatest strength. Metaphorically, when bearish we need to throw our rocks into the wettest paper sacks, for they break most readily. In bull markets, we need to ride upon the strongest winds… they shall carry us higher than lesser ones.

8. Try to trade the first day of a gap (either higher or lower), for gaps usually indicate violent new action. We have come to respect “gaps” in our twenty five years of watching markets; however in the world of twenty four hour trading, they are becoming less and less important, especially in forex dealing. None the less, when they happen (especially in stocks) they are usually very important.

9. Trading runs in cycles: some good; most bad. Trade large and aggressively when trading well; trade small and modestly when trading poorly. In “good times,” even errors are profitable; in “bad times” even the most well researched trades go awry. This is the nature of trading; accept it.

10. To trade successfully, think like a fundamentalist; trade like a technician. It is imperative that we understand the fundamentals driving a trade, but that we understand the market’s technicals also. When we do, then and only then can we, or should we, trade.

11. Respect “outside reversals” after extended bull or bear runs. Reversal days on the charts signal the final exhaustion of the bullish or bearish forces that drove the market previously. Respect them. Even more respect must be paid to “weekly” and “monthly,” reversals. Pay heed!

12. Keep your technical systems simple. Complicated systems breed confusion; simplicity breeds elegance.

13. Respect, expect and embrace the very normal 50-62% retracements that take prices back to major trends. If a trade is missed, wait patiently for the retracement.

14. In trading/investing, an understanding of mass psychology is often more important than an understanding of economics.. at least much, if not most, of the time.

15. Establish initial positions on strength in bull markets and on weakness in bear markets. The first “addition” should also be added on strength as the market shows the trend
to be working. Henceforth, subsequent additions are to be added on retracements.

16. Bear markets are more violent than are bull markets and so also are their retracements..

17. Be patient with winning trades; be enormously impatient with losing trades.

18. The market is the sum total of the wisdom … and the ignorance…of all of those who deal in it; and we dare not argue with the market’s wisdom. If we learn nothing more than that we have learned very much indeed.

19. Do more of that which is working and less of that which is not: If a market is strong, buy more; if a market is weak, sell more. New highs are more often then not to be bought; new lows are to be sold.

20. ALL RULES ARE MEANT TO BE BROKEN: The trick is knowing when… and how infrequently this rule may be invoked.!

Provided by GVI

Look for a reputable broker

* Ability to trade effectively depends on consistent spreads and ample liquidity
* Anyone can establish a position
* Ability to close out a position at a fair market price is more important

Live to trade another day

* Apply prudent money management skills
* Avoid using excessive leverage that puts your investment capital at risk
* Always trade with a stop!

Don’t trade emotionally, stick to your plan and maintain discipline

* Establish a trading plan before initiating a trade
* Set reasonable risk/reward parameters
* Don’t override your stops for emotional reasons
* Don’t react to price action � means don’t buy just because it looks cheap or sell because it looks too high, Have supporting evidence to back up your trade

Don’t punt

* Don’t punt ( Punting is trading for trading sake without a view)

Don’t leave stops at obvious levels such as big figures (e.g. eur/usd 1.20, usd/jpy 110)

* i.e. JUBBS stops = stops at obvious levels and thus are more likely triggered

Don’t add to a losing position in unless it is part of a strategy to scale into a position

* In other words, don’t double up in the hope of recouping losses unless it is part of a broader trading strategy

Trading with and against the trend

* When trading with a trend, consider the use of trailing stops.
* When trading against the trend, be disciplined taking profits and don�t hold out for the last pip

Treat trading as a continuum

* Don’t base success on one trade
* Avoid emotional highs or lows on individual trades
* Consistency should be an objective

Forex trading is multi-currency

* Watch crosses as they are key influences on spot trading
* Crosses are one currency vs. another, such as eur/jpy (euro vs. jpy) or eur/gbp (eur vs. gbp)
* Crosses can be used as clues for direction for spot currencies even if you are not trading them

Be cognizant of what news is coming out each day so you don’t get blindsided

* Be cognizant of what news is coming out each day so you don’t get blindsided
* Beware of trading just ahead of an economic number and be wary of volatility following key releases

Beware of illiquid markets

* Beware of illiquid markets
* Adjust strategies during holiday or pre-holiday periods to take into account thin liquidity
* Beware of central bank intervention in illiquid markets

1. Be sure you already make some research and learn the basics of Forex.

2. Choose the forex broker / dealer, you can see it on our brokers review.

3. Use demo account for training at least for several months.

4. If you ready to trade real, be sure you have available Funds to deposit (it’s depends on your budget). For newbie $100 is enough, while for expert traders usually above $1000.

5. What deposit methods suits you well, this can minimize problem you have to deposit / withdraw your money. One broker maybe have different payment method with another broker. Such as Credit Card, Wire Transfer, Paypal, e-gold, e-bullion, Liberty Reserve, Webmoney, etc.

6. Increase your experience and skills, by learn things that can impact the currency price. Learn from forex news, articles, technical indicators and Fundamental Analysis.

Provided by Pure Logic Trading

NEVER EVER TAKE A BIG HIT
Large losses are the number one account killer. Never let a trade get away from you. I always say “LOSE YOUR OPINION, NOT YOUR MONEY”

TRADING INSANITY
Is doing the same thing over and over again and expecting different results. Take the road less traveled. The “herd” is almost always on the wrong side of the trade.

TRADING IS 90% MENTAL
The other 10% is in your head. We always get what we focus on. Trade in the PRESENT moment and focus on correct action.

THE MARKET OFTEN MOVES IN THE DIRECTION THAT WILL INFLICT THE MOST PAIN ON THE GREATEST NUMBER OF TRADERS
Yes, the professionals are out to take your money. Often the harder trades to take are the ones that reward you the most. Think outside the box.

TRADE FROM A BLANK MIND; UNBIASED, UNEMOTIONAL, AND UNIMPULSIVE
It�s worth repeating “Lose Your Opinion, not your money.”

EXPECT THE UNEXPECTED
To be a great trader you have think outside your comfort zone. Have a plan to take advantage of market jolts (the trade action that normally takes your money from you).

EXPECT AND ACCEPT LOSING TRADES
Losing trades are natural phenomena to the business of trading. Good traders know from experience that profitable trades are just around the corner.

WHEN IN DOUBT GET OUT
Sometimes market action and news etc. get traders confused about their original intent and purpose in a trade. Then they tend to “hope” the trade will work or come back. This leads to paralysis and trades getting away from you.

DON’T SHOULD ON YOURSELF
Stay away from the market victim mentality at all costs. Wish I would have should have etc. is defeating language to yourself. Traders need to stay in a positive mindset.

DO NOT OVERTRADE
Novice traders feel a need to have a trade(s) on and often are jumping in and out of the market randomly. Overtrading will kill your account and your mindset.

HAVE A BUSINESS PLAN FOR EVERY TRADE
Know your entry, stop-loss, and target price for every trade. Write your plan down and stick to it.

THERE ARE NO ACCIDENTS IN TRADING
The market is always right. If you are not getting the results you want, you must change your beliefs about trading and yourself. What you fear you create!

DO NOT TRADE THE MONEY
Focus on correct action in the present moment and not on your P/L. When traders focus on the money they become emotional and usually make poor decisions.

KEEP A TRADE JOURNAL
There is no better teacher than your own experience with your winners and losers. Review your journal daily, weekly, and monthly. It is very important to stand accountable for all your results.

THE OLD AXIOMS AND THE TRUTH ABOUT THEM

THE TREND IS YOUR FRIEND
Can�t argue with this; trading on the side of a defined trend has the most consistent history and rewards.

CUT YOUR LOSSES SHORT AND LET YOUR PROFITS RUN
Sounds great (and it is) however is much more difficult to do in the real world of trading. This is exactly why each trade set up begins with a well-defined plan for all possibilities.

NEVER BUY A FALLING ROCK
Or step in front of a freight train. This axiom warns against trying to pinpoint tops and bottoms and fading strong moves.

NEVER AVERAGE DOWN
This policy is good for beginning to intermediate traders. However, the pros do love to average into a position over time at specific levels.

1. Learn from everything or everyone. You can learn from books, websites, or succesful traders about Forex Trading. There are many learning styles available for you to learn. You can learn by trading in Demo Account.

2. Don’t start ‘Real’ Forex trading before training. Remember: You should know your battlefield before you go to battle.

3. Prepare your trading tools, like Charting Tools. As well as learn the Technical and Fundamental Analysis. For Technical Analysis you can use Technical Indicators, and for Fundamental Analysis you can watch forex news, events, etc.

4. Then you need to choose the best broker that suits you well for your trading style. Study the Leverage, minimum deposit required, spreads, as well as the nice technical support.

5. As long as you know the basics and have your own trading style, you will be ok. Don’t become greedy, and you will be ok.