Do you know the rules of profitable trading?

Rule #1: Do your own research before entering into a trade.
When it comes to trading, and oddly enough, many other things in life people are so quick ask others what to do. Unfortunately, there is no market in the world that is going to reward you for being lazy and just following advice from someone else. Think about for a second, if you are getting less than quality advice from someone who hasn't even done their homework, where does that leave you? Even if this person has done their due diligence, chances are they might have completely different objectives and strategies than you. In that case, his strategies might not benefit you at all.

Rule #2: Take responsibility for your actions and results
This kind of ties in with the previous rule. In order to successfully navigate the markets you have to take responsibility for everything. This means picking your currency to trade all the way down to correctly exiting your trades. This also means not blaming the market or anyone else on your trading success or failure. Too many traders don't value their own judgement so they rely on what everyone else is saying when it comes to making trades. There is only one way to success in the market and that is make your own decision and trust them.

Rule #3: Follow your trading plan
Going into markets without a trading plan is like going grocery shopping without a list. Instead of knowing exactly what you need to get in and out you'll spend unnecessary time deciding back and forth getting nothing accomplished. You'll probably forget why your even there. To prevent this kind of confusion come into the game with a solid plan on how to achieve what you want and stick to it. It will be that very plan that will keep you focused amidst all the chaos the markets can cause on a trading account.

Rule #4: Proper Money Management
Leverage, as you might have heard, is a double edge sword. Leverage is to be used as a spice in a sense. Use enough to get the job done but not so much as to ruin the dish which is exactly what happens to some traders. They get easily excited about how much money they can make, use much more leverage than needed and ultimately ruin their accounts. Leverage can make a good trade a great one and a bad trade a terrible one. But being over-leveraged is the most dangerous thing a trader can do. You should never risk more than 2% of your account on any one trade. These are a few rules on how to trade profitably. Use them and you shall see success.

While these rules are a very important aspect of trading, there is a far more you should learn if you plan to be successful. You don't want to be one of those traders who come into the markets only to be handed his head, do you? If not, you owe it to yourself to visit the link below for even more rules on profitable trading, quality articles and other tips on improving your trading.