Hey hey: what's up my friends, so in today's episode right i want to talk about the top seven forex trading rules for beginners right, so number one trade, your time frame. So what do i mean by this? So if you're a forex trader, you know that you know there's almost a lot of time frames that you can look at five minutes: 15 minutes 30 minutes one hour for eight hours, daily, weekly or even monthly. So here's the thing right. If you don't define the time frame that you're going to trade at the start, then what's going to happen, is that you'll, be you know all over the place, you'll be on a five minutes: 30 minutes for one hour daily time frame right to look for trading.

Setups and you're going to get analysis, paralysis. Oh the daily timeframe is an uptrend rainer, but on the 15 minutes timeframe it's a downtrend so which timeframe should i follow the 15 minutes or the daily hmm? And then you go to forum. You ask for help blah blah blah, so here's the thing right once you can define your timeframe once you only stick to your time frame once you just create your timeframe and ignore everything else, things become much more clear-cut because you know what to focus on right. What's relevant to your trading and the rest is just noise all right, so trade, your time frame and ignore everything else, number two: don't follow a signal service, so a forex signal service is where someone says you know: buy euro dollar right, uh, 50, stop loss; 100, Peop target: don't do that right, because when you put your trading in the hands of someone else, then what is going to happen is that you will never pick up the skill of trading and number two when that system.

That strategy goes into a drawdown, meaning you encounter a series of losses. You will lose right. I can guarantee you, you will lose the conviction right to follow the person because you're unsure man has this trading strategy, stop working man what's going on, you know you have all this kind of you know conflicting thoughts in your head. So don't even start with right.

Don't follow signal service, it is just the best right for for the for your overall trading career number: three: don't use fixed lot sizes. So this is a mistake. Many traders also make because you know. Oh, it's simple right.

I just risk one mini lot on every trade right, so this way you know it's easy to to to put into the mt4 platform, for example, but the problem with this is that different pairs have different volatility. You can compare the volatility of let's say: dollar yen to dollar canadian, it's different right and on top of that different pairs, their pip value is different as well. So if you use a fix, for example, one mini lot on every single trade. What's gon na happen is that sometimes your losses might be 200; sometimes it might be a thousand dollars and you're not sure why and that's precisely why, because you're using a fixed lot size right for different pairs, with different volatility, with different pip values, etc.

Fourth thing: don't set your stop loss right, uh, or rather the fourth thing right, set your stop loss away from price structure. So what this means is that whenever you place a stop loss right in the forex market or even in stock markets, you want to set it at a level right which invalidates your trading setup. You want to set it at a level where the market has. You know difficulty reaching your stop-loss, so what i mean by this is that if you are in a long trade you buy because there's a you know, let's say: there's a bullish setup, then your stop-loss right want to be at a level where the price has difficulty.

You know heading lower. This could be you know, maybe because your your stop loss right is below support. So, as you know, support is an area where potential buying pressure, you know, could step in and push the price high. So naturally, you want to set your stop-loss right below support a distance away below it.

So this way, if the market were to reach a stop loss, it first has to break support. So you have to make the market work hard to reach your stop-loss. Can you see where i'm coming from so this concept right can be applied to whether is it fx stocks whatsoever right? You can apply it on different time frame as well. Basically, you want to identify the the price structure on the chart, the nearest price structure and then set your stop loss away from it.

The price structure could be something as simple as support. It could be your upward trend line. You could be a moving average that the market respect right, set your stop-loss away from this price structure, so the marketer has to work harder to reach your stop-loss, and this way right, you kind of you know uh - would stay in your trade longer and not get Stopped out unnecessarily based on just you know: random whips or random noise in the market. Fifth thing right follow the price right, so this is a again just a rule of thumb right, whether you trade stocks, fx or whatsoever, follow the price.

If the market is heating higher over time, then look for buying opportunities, don't try to be a smart, aleck and say: oh, the market is too high. It can't go any higher. It's coming to resistance, it must come now lower. Let me sell no, that shouldn't be your top process.

Your top process should be. You know. I know nuts market is from left to right. It's going up i'll look for buying opportunities, oh from left, to right, it's heading down.

I look for selling opportunities. That is as simple as it should be, but funny thing is, as we as traders right, the longer we trade, the more we complicate things we add in fundamentals. We add, you know multiple timeframe, analysis. We add in all this conflicting information right and we end up.

You know doing things that shouldn't be done. Okay, so number five just follow the price number six have a trading plan. So what is a trading plan? So a trading plan is something as simple as a plan right that tells you when exactly to enter a trade when you exit the trade, how will you manage the trade if it moves in your favor? How will you manage the trade if it moves against you which markets you'll trade, which time frame? So this is a plan right that covers everything from a to z, because once you're trading with a plan, then there's no more guessing right. There's no more subjective subjectivity, because you know what to do right ahead of time, every single time and it's powerful, because it gives you right the confidence right to put on a trade right.

Knowing that whatever happens right, you are in control compared to you know, following a signal service, where you don't know, what's going to happen, who that person is etc. Having a trading plan puts you in a driver's seat, you are in control and finally, number seven trading rules. Rules are meant to be broken. I know that sounds ironic right.

You know you just feed me, the top seven or the top six trading rules and number seven you tell me, rules are meant to be broken. Yes, and let me explain why it's because context matters right. So, for example, you know some people say that to make money in the financial markets, you've got to buy a low, sell high. That sounds like you know, yeah right now, that's right man, but hey who says you can buy high and sell higher.

Yes, you can as well right especially momentum traders, so you can see where i'm coming from right. Is that rules right? They are there to guide you, but once you understand the principle behind those rules, then you can actually you know ban. You can even tweak those rules right to to suit your circumstance, so i just give you one example right: you know, being uh from buy low, sell high to buy high sell higher, or how about this right, never average into your losses right. That's again a pretty common rule right, that's even i myself.

I share it a few times on uh on the few episodes right, but at the same time, right for experienced traders if they know that the area of support is let's say it's pretty large, they can average their losses right as the price you know, sinking deeper And deeper into support because they're getting you know, they're buying at an even cheaper price, but that must be done right correctly with proper risk management, where you know if the price goes into support by 2d right, they have to. You know eventually cut their trade right when they know that you know, support is eventually broken, but what? If the support is a huge area, they can average in their loss their losses. You know two times three times right, that's possible because they know that they are. You know, trading within a huge area of support.

So, as mentioned right, you've got to understand the principle behind the rules. Right then only then right can you ban or tweak the rule. So that's kind of number, seven. Okay.

So with that said, let's do a quick recap. Number one trade, your time frame, number two! Don't follow a signal service number three! Don't use fixed slot sizes! Number four set your stop loss away from uh price structure! Number five! Follow the price number six have a trading plan and number seven, you know rules are meant to be broken. So with that said, i wish you good luck and good trading. I will talk to you soon.

You.