Forex Trading in Dubai – Learn The Golden Rules

Dubai has maintained its position as an entryway to the Emirates for investors. It successfully managed to become a hub for finance and trade. Individually speaking however, Dubai Forex traders and traders around the world - experienced and beginners - tend to lose sight of the most essential tenets of Forex trading. This is not a surprise though. There is a vast amount of information today concerning Forex trading that it’s quite easy to end up swamped with the nonessential aspects.

When I share my knowledge to other traders here in Dubai, I frequently tell them that Forex trading and its concepts, theories and core applications haven’t changed much in the past several years. I remind them a few rules that any trader should never forget:

Golden Rule #1 Have Specific Goals and Objectives

Few things are more important to your trading success than having set goals and objectives for what you want to attain. If you have a bunch of things in mind, then it is a good idea to get them on paper and off your mind. That way, you’ll be able to set plans in an organized manner. This will also keep your head from being filled with things you need to remember while trading. Be realistic with your objectives however. While not impossible, it is unlikely to make a million dollars in a year if you are just starting out with a few thousand bucks.

Golden Rule #2: Always Have a Sound Money Management Plan

While Forex trading can be the most lucrative venture, it can also be the most tragic one if you don’t have a good money management plan in place. Even if you have the best trading setup out there that is highly profitable, without a sound money management plan, you will easily lose everything. Know how much you are looking to make as well as whether or not you should redeposit immediately after a losing trade.

Golden Rule #3: Be Educated

Forex trading is a life-long learning process and you should be willing to embrace this if you are really serious about it. Successful trading involves keeping up to date with the latest news and a vast amount of related information. Being well-educated means that you have done your research, tested your trading strategies and are updated with the latest news and updates that will determine how you conduct your trades.

Rule #4: Be Consistent and Disciplined

There is nothing that can damage your trading system more than being disorganized and inconsistent. After developing your trading plan, you should have the discipline to stick to it whatever happens (assuming that it is complete). That is why it is important that you have a high confidence in your trading systems. Take your time in developing your trading system until you are certain that it will be beneficial for you in the process.

Rule #5: Never Trade Money that You Can’ Afford To Lose

A lot of traders make the mistake of depositing a large amount of money and failing to realize that there is the potential to lose all of that in each trade. Remember that trading is about taking a risk that you can handle in order to reach a good reward. Do not trade money which you need to pay the bills as well as if your expenses are not covered by another income source. Otherwise, this will only result to unnecessary stress which can negatively affect your trading performance.
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