Marks Investing Blog

These “tips” are now on my wall next to my trading computer. They are in fact my core rules because each one mentioned below I broke and lost money.

Of course each rule was stated in the Knowledge to Action course but like most males who think they know better than the experts I ignored these rules and decided to take a punt. Always – always I lose money when I do this!!

Forex Trading Rule 1: Paper Trade First

Always paper trade first when starting out in the Forex market – BUT – also continue to paper trade when you are going into the Forex market during a major disaster. I traded with a live account during the Japan crisis on the EUR/USD and lost money. Each time the news broke out about another nuclear risk the price dropped through the floor. I lost money because I was going Long because at the time this was the major trend. The image below shows what happened to the EUR/USD just after news about “UN approves no-fly zone resolution for Libya”.

Forex Trading Rule 2: Do Not Break Strategy Rules

Sometimes I look back and wonder if I have any commonsense. The 3 strategies I use are Income Generator, Forex Pivots and Forex Snipers. All 3 have been created by Greg Secker and have been battled tested by experts. They do work and when I use them correctly I make money. If I use these strategies and ignore some of the rules I always lose money. Whatever strategy you use make sure you read and follow the “manual”.

Forex Trading Rule 3: Keep Out of the Market during Major Disasters

By trading with a live account (real money) during the Japan crisis when the nuclear plant was melting I lost money. The Forex market is so unpredictable during this time that beginners like me should not trade with real money. Paper trading is good as you learn a heap about how the market reacts. So stick to fake money until the disaster ends and the Forex market goes back to its normal rhythms.

Forex Trading Rule 4: Stick to Only a Few Currency Pairs

I only trade EUR/USD, AUD/USD and GBP/USD. I need to understand the personality of each currency pair really well. Understanding the currency pair’s “rhythm” and how the market uses the currency pair in disasters is vital. The Japan disaster taught me well on this rule.

Forex Trading Rule 5: Stick to Micro Accounts Initially

If you start using your “live” account then stick to trading with a pip size of .10 (10 cents per pip). If you lose a trade due to breaking the rules then your loss will not be as bad. If you have $10,000 (mini account) or even $100,000 (standard account) you are trading $1.00 and $10.00 pips respectively so losing a trade is more of a loss for you.

Plus check out The Blonde Trader’s Forex Tips post=> The 5 Most Common Mistakes that will make You Lose Money Forex Trading