PrymFX Rules and Tips for FOREX Traders
Updated: Sep 18, 2020
1. Identify a group of FOREX pairs you want to follow. Do not try to trade everything, the more familiar you are with the pairs the more you will be able to recognize what moves each.
2. After the market has moved in your favor for a period of time, inevitably there will be some sort of “Mean Reversion” or opposite price reaction. This happens extremely fast and very often in the FOREX market. You must have an exit strategy as soon as you open a position.
Never begin a trade with more than 10% of your capital. This allows for ample space to average your price up or down accordingly.
3. Patience is often a difficult way to be in the fast moving FOREX market, but many times its better to be patient, especially before opening a position. Remember, there is always another opportunity in the FOREX market.
4. One of the biggest advantages, as well as the largest disadvantage is Leverage in the FOREX market. DO NOT OVER LEVERAGE YOURSELF!
5. Know the calendar. You must be aware of upcoming events that could affect the pairs you are trading. There are various economic calendars available through all major FOREX Brokers as well as on the internet. A simple search should yield you multiple sites including Yahoo Finance.
6. You do not have to take every trade we alert. Sometimes you make more money by being out of the market than being in.
It's not about the quantity of FOREX trades a trader makes, its all about the quality. Cut your losses short and let your winners run!
7. Understand both the long-term and short-term PRYMfx Risk oscillators we post once a day. These oscillators can be oversold/overbought for extended periods of time. However, they provide a good tool to help keep your emotions in check.
8. Do not fall in love with any one trade. Once the FOREX trade begins to move in your favor, move your Stop Loss point up. You can always check in our open alerts to see if we have adjusted our Stop Loss price.
9. As a FOREX trader, understanding seasonal patterns is important. There are times throughout the year where liquidity is low and spreads are large. These are not optimal conditions for FOREX Trading and stop losses can be triggered quickly.