Trading Forex can be exciting, and has the potential to provide a little extra positive cash flow on the side. However, there are certain things traders should do when dealing with the markets, especially if they are going to be trading someone else's funds. Here are some tips for trading responsibly.
Knowledge is power; so there is power in taking the time to learn how to trade. Do your best to learn and understand the markets; a key to accomplishing this is asking questions: Why would the price action reverse here? Who's taking the other side of this trade, and why? etc.
It's also important to understand the different ways to trade, not just the strategy you think you like. There's a reason we require our traders to try different strategies in their simulated Beeline to Funding account - if you have a general knowledge of the different trading styles, you will be in a better position to pick, and stick to, the strategy that's best for you.
Preparation is an important aspect of trading. Decide before you start trading how much you're willing to risk; this will help you get out of the market when you need to rather than when our risk management system makes the decision for you. ;)
Another aspect of preparation includes being aware. Take a couple minutes and check to see if anything might disrupt your trading like a news event or daily maintenance.
One of the key reason's Shawn Lucas developed the Investor Profile was so traders could get an idea of their trading strengths and weaknesses. Being aware of your trading weaknesses, and having defined a set of trading rules, is a big step towards controlling the outcomes of your trades. The rules you set, however, won't have any meaning if you don't hold yourself to them.
It's natural when you're trading to want to hang onto the trade a little longer or to adjust your stop loss just a bit more. The time for adjusting your trading plan isn't when you're committed to a trade, it's afterwards.
At that point, you can take a look at your trading plan and make adjustments where needed. Try recording your behavior and emotions through your trades; you might be surprised at the emotional trends you can discover.
One of our goals is to take our traders through these steps, and to help them commit to a profitable trading plan. After we have taught our traders, and they show us that they are able to consistently trade profitably, then we fund them and we both enjoy the benefits of responsible traders.