There is an old saying: “rules are used to break.” However, when it comes to your money, this sentence can not be applied! Whether you are using an automated trading system or you are a scalper, the rules should always be observed in foreign exchange trading. The following 11 gold trading rules need to be applied to every transaction to avoid damaging your capital:

1. never add to a failed deal.
   If you want to make a profit from a bad trade, you are doomed to failure. You know, many trends usually last for a period of time. If you are already on the other side of the trend, you will only lose more money if you join the fund. It’s too risky to go against market trends.
2. Have a mercenary mentality
   Don’t care which side you’re on, or whether you’re long or short. In short, it’s always right to join the profitable side! In a sharp market fluctuation or decline, short buying is a good profit opportunity, but it also has risks. This is also the reason for buying more.
3. Don’t try to capture the highest or lowest price
   You are trying to commit suicide if you want to sell before a price correction or buy before the price bottoms out. Logically, “buy low and sell high” is ideal, but you can never really predict when they will come.
   If the situation is self-evident, accept failure
   If the failure of the transaction is a foregone conclusion, do not continue to fantasy, pick up the mood and move on. If the trade always doesn’t meet your expectations, adjust your expectations first. The market doesn’t always fit your analysis, so it’s important to remember that.
4. If you are not in the state, do not trade
   Emotions are so important in the process of trading. If you didn’t feel like you were at the moment, give yourself a day off. One of the advantages of being a trader is that you are completely free and can stay away from trading at any time.
5. Follow the overall market trend
   Trends are your friends. Even if you trade in a period of low volatility, you can still see a trend in the market. Protect your own money.
6. Be patient in profitable transactions and exit quickly in failed ones
   It’s a hard rule to follow. If your trading is profitable, you will be eager to get the profits. If the deal is profitable, make sure you know where to exit.
7. Trade according to market sentiment, not market news
   The prediction of the news has driven the change of the market. The market will respond to news events in advance, so you need to observe price fluctuations and sense market sentiment.
8. Be more careful when encountering extreme market
   A good example is the fall in natural gas prices to around $2 in 2014. Many traders bet heavily that the share price can’t fall below $2 because it’s too low. But then prices continued to fall.
9. The market is more illogical than you think
   The market is never wrong. You are the one who is wrong. Accept this fact and make it an important guide for market analysis.
10. Believe in yourself
    Don’t doubt your decision, don’t doubt the deal. When you start to doubt yourself, you lose.