Secrets to emotion free trading

• Always use Stop Orders: Always remember not to put your money on a trade having no top order.

• Stop Trading, after losing 3 trades in one day: According to successful traders if you lost three trades in one day then stop trading and avoid plowing you in a huge hole.

• If you get more than 100 point in a trade then you must move your stop order to manage. If you obtain respectable money in a trade then do not allow yourself to lose money on that trade.

• Wait for an indication to get into the market and just don't take an inoculation. Trader usually gets themselves into dilemma if they have sensitivity about the market and act on it. They can be much more successful if they use a chart formation or a technical reason to get into the market.

• Traders must proceed with their best concentration in wits. It is something they should make an effort and do in small amount each and every trade they put on. By this they will realize that only are only responsible for their results.

• Lighten up with your trade. If your trading is not like vocation with avocation, it implies that if you are not enjoying and having fun then it is not worth doing. If you don't take pleasure in it, you won't be successful.

• Last but not least, you don't have to trade everyday. Occasionally traders just leave the market alone and forget about if for a day. It usually refreshes them.

Calculating Profit and loss

To illustrate an FX trade, consider the following two examples.

Let's say that the current bid/ask for EUR/USD is 1.4616/19, meaning you can buy 1 euro for 1.4619 or sell 1 euro for 1.4616.

Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros (simultaneously selling dollars), and then wait for the exchange rate to rise.

So you make the trade: to buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619). Remember, at 1% margin, your initial margin deposit would be approximately $1,461 for this trade.

As you expected, Euro strengthens to 1.4623/26. Now, to realize your profits, you sell 100,000 Euros at the current rate of 1.4623, and receive $146,230

You bought 100k Euros at 1.4619, paying $146,190. Then you sold 100k Euros at 1.4623, receiving $146,230. That's a difference of 4 pips, or in dollar terms ($146,190 - 146,230 = $40).

Total profit = US $40.

Now in the example, let's say that we once again buy EUR/USD when trading at 1.4616/19. You buy 100,000 Euros you pay 146,190 dollars (100,000 x 1.4619).

However, Euro weakens to 1.4611/14. Now, to minimize your loses to sell 100,000 Euros at 1.4611 and receive $146,110.

You bought 100k Euros at 1.4619, paying $146,190. You sold 100k Euros at 1.4611, receiving $146,110. That's a difference of 8 pips, or in dollar terms ($146,190 - $146,110 = $80)