- Always sell at the bid price, and buy at the ask price. If you are trading from a chart, don’t forget to switch your chart to the bid window when you are selling and to the ask window when you are buying. The prices are different, and that difference is the spread. Failing to do so will result in your aying a larger commission fee.
- Remember that forex is not an answer to your get-rich-quick quest. As Martin J. Pring puts it, “There is no such Holy Grail.” The saying “patience is a virtue” should be the loudest voice inside the heart of every Forex Diva. It should probably even be printed on a sticker on your fridge, right next to your technical analysis cheat sheets. Let’s practice again in a loud voice: Patience is a profitable virtue.
- Trade to invest, not to win. Well, as studies show, women in general do obey this one because of their feminine instincts. But still, it doesn’t hurt to remind yourself of it every once in a while. Remember your long-term life plans, your family goals, and your dreams. Never trade to prove someone wrong. In other words, lose the battle to win the war! This being said, we are not encouraging either fear or greed. Try to be objective in every step you take in your analysis, and avoid trading based on greed or fear—the two destructive mental forces in any invest
- Don’t let fear change your gear. In the overall final analysis, before you place a trade, fear can show itself in two ways: fear of losing and fear of missing out. This can easily change your sense of objectivity, or “objective gear,” and push you to make a wrong decision, and it is actually the same in any kind of trading and in all people. All people, both rich and poor, fear losing money; this is especially true if they have had a bad experience in trading because they will fear that the same thing will happen again. When you find yourself in this kind of situation, it is almost always wise to stand aside. Take a deep breath, go out for a walk, visit the Invest Diva Forex community online and have a girl talk with the other forex divas—anything that will help you get back on track and into your objective gear.
- Don’t let greed change your speed. Greed is another extreme form of our emotional makeup In his book Investment Psychology Explained, Martin J. Pring describes greed as a result of the combination of overconfidence and a desire to achieve profitable results in the shortest amount of time. Especially when it comes to forex trading, where you have the opportunity to use giant amounts of leverage, the temptation to go for the quick home run is very strong. Change of your investment speed, you want to call it? Well, your wishful speedy investment approach is bound to lead to greater stress and a change in your objective gear. This can also happen to investors who have had a run of success. They tend to be relaxed—in fact, too relaxed and overconfident—and therefore are less likely to question their investment or trading position even when new evidence to the contrary shows its ugly face. In the end, moderation is the key to success. And here I’m going to show you a little poetic rhyming:
Too much fear and too much greed can lower your chances to succeed.
I should totally become a rapper don’t you think?
6.When not to trade! “I’ve become too invested in the forex market and price movements, and I can’t stop trading!”
Well, this is not an excuse. Forex trading does have addictive tendencies from time to time, but it needs a focused mind and a stable mentality.
Saying, “It’s just a cold! I can totally trade!” is an absolute mistake.
When you trade forex, you are investing your money with added leverage. Being in your best physical condition is important to enable you to focus, get the timing right, follow the rules, execute proper analysis, make good decisions, and, in general, avoid risk of loss.
No forex party for you when…