Module 2: The Markets Have No Rules, Except The Rules We Place On Ourselves

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LESSON: The Markets Have No Rules, Except The Rules We Place On Ourselves

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]One of the other reasons the Forex markets appeal so widely to so many people is because of the fact they do not have many strict rules in place.

As a trader you get to decide:

• When you trade
• How long you trade
• When and if you exit
• How much you risk
• How often you trade
• What method you use
• What time frame
• What leverage to use

These are just a tiny portion of the endless choices traders have to make. There are no rules that make traders do anything. Whilst this sounds great in theory it is actually why so many traders fall down.

In our everyday normal life we are all use to having rules and structures in place for us. We know the way we have to behave so we don’t hurt ourselves and others and when we don’t behave correctly the rules are enforced upon us. Now how different from this is the markets? Who is telling you what to do? Who is going to enforce the rules? Who is there to protect us, so we don’t hurt ourselves?

What do most traders try to do to overcome this problem? They make trading rules that they promise to follow. The problem with this is that the reason the trader came to Forex in the first place was because of the freedom, and because of the lack of rules. Without even realising, traders then fall into not following these rules.

Your Plan

The silly thing is that if the trader actually did stay disciplined and actually did follow these rules and plans that they had made, most times they would have made money.

Traders will have rules in place such as “do not over manage trades” or “do not manage trades until the end of the session”. This same trader will then change their stop placement mid trade or take an early exit, by being stopped out of a winning trade or not banking as much profit as they should have, if they had just FOLLOWED THE PLAN! Does this sound familiar?

As a trader you must identify and realise these faults. You must realise it is not the markets fault but yours. The market is not creating these mistakes. Make your plan and your trading rules and then stick to it. Follow this plan and set of rules through the good and the bad as it is the only set of rules that will stop you from hurting yourself![/text_block][/op_liveeditor_element]