The Forex Traders Ten Commandments - forex trading daily advice

The Forex Traders Ten Commandments ~ forex trading daily advice

so you want to be a trader huh…? A successful one i hope.. Well if so you then want to pretty quick write down some really important rules.

These rules if used correctly will always have you ahead. However if you cannot follow them to the tea then you will always run into problems. I call them the ten commandments of trading because once you can fully learn to follow them then you will always make money no matter what, however if you choose to risk one or the other you are gonna have issues that is for sure..

This is by the way for the Forex market.. Not for other markets.

Forex Traders Ten Commandments

1. Always look at overall trend. If the overall trend is up then simply put only look for buys, don’t trade both ways unless you are sure you are at major top like a daily resistance. It is just not worth the risk otherwise. Make sure to identify the overall trend and then stick to it until the overall trend line is fully broken..
2. Always know your Risk First.
3. Always know your attainable Reward.
4. Keep Account draw down to less than 20%. Draw down is fine, but not at the expense of your whole account so keep it in check..
5. Sell at highs ( retracements )
6. Buy at lows ( retracements )
7. Keep to your own personal exposure rules to limit risk in the market.
8. Use a stop loss that is where you are definitely wrong.. It is always better to focus on winning trades rather than losing trades, so either hedge the bad trade ( optional advanced money management ) or cut losses when you know you are wrong.
9. Lock in profit when a trade goes your way more than a 1 to 1 risk to reward.. This can be a small lock in of around 5 to 6 pips if you are going for a desired target, but either way lock it in, it is better to risk profit than to let a winning trade go into loss.. would you not agree?
10. Let your winners run as far as you can handle while locking in as you go.. To lock in, simply keep adjusting your stop loss into the profit zone.. If the market is moving quickly, adjust your stop loss quickly, if the market is moving slowly then adjust it slowly.

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DAY TRADING FOREX WITH CCI INDICATOR - live forex trading advice

DAY TRADING FOREX WITH CCI INDICATOR ~ live forex trading advice

LONG TRADING SETUP

1. 14-period CCI moves above 100
2. At least one bar closes down (retracement)
3. Enter one tick above bull trend bar

If CCI falls below -100 at any point, the trading setup is void.

SHORT TRADING SETUP

1. 14-period CCI moves below -100
2. At least one bar closes up (retracement)
3. Enter one tick below bear trend bar

If CCI rises above 100 at any point, the trading setup is void.

WINNING TRADE – SHORT CCI DAY TRADE

This is a 30-minute chart of 6E futures contract.

1. CCI fell below -100 line and set the stage for short trades.
2. This bar closed up as the first sign of retracement. We went on high alert for a bear trend bar as a signal bar.
3. This small bar could have been our trigger but price did not go below it to trigger our sell stop order. Instead, we went short at bearish inside bar (red arrow).

LOSING TRADE – LONG CCI DAY TRADE

This trade actually worked, if not for the outside bar that whipsawed us out of our position.

1. CCI went above 100.
2. Prices retraced down for two bars before giving us a bull trend bar for entry. However, right after we entered the long trade, an outside bar stopped us out by one tick. (As always, we placed our stop-loss a tick below the signal bar.)
3. Long trading setups that allow us to enter below the high of the CCI break-out bar tend to work better. The reverse is true for short trades.

CONCLUSION – DAY TRADING WITH CCI

This simple trading strategy uses CCI to find momentum before we trade along with it. Waiting forretracement before entering the trade works well to avoid whipsaws.

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