Forex

Use your common sense when you analyze markets. When some new
development puzzles you, compare it to life outside the markets. For example,
indicators may give you buy signals in two markets. Should you buy
the market that declined a lot before the buy signal or the one that declined
a little? Compare this to what happens to a man after a fall. If he falls down
a flight of stairs, he may dust himself off and run up again. But if he falls
out of a third story window, he's not going to run anytime soon; he needs
time to recover. Prices seldom rally very hard immediately after a bad
decline.

Successful trading stands on three pillars

Successful trading stands on three pillars. You need to analyze the balance
of power between bulls and bears. You need to practice good money
management. You need personal discipline to follow your trading plan and
avoid getting high in the markets.