Pure Logic Axioms for Currency Trading
If you want to make Currency Trading in Forex. You must know all basic knowledge about Forex and the guidelines to do the better trading. Here some Pure Logic Axioms for Currency Trading:
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”
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.
- Negative Volume Index (NVI)
- MACD – Moving Average Convergence / Divergence
- Mesa Sine Wave
- Median Price
- McClellan Oscillator
- Mass Index (MI)
- Market Facilitation Index
- Linear Regression
- Klinger Oscillator (KO)
- Keltner Channel (KC)
- Kagi Chart
- Intraday Momentum (IMI)
- Ichimoku Kinko Hyo (IKH)
- Historical (Natenberg) Volatility
- Herrick Payoff Index
- Haurlan Index
- Full Stochastic Oscillator