Terms & Conditions

PRINCIPLES OF TRADING

1.      Consider trading as a business and be professional in your approach. This means having a regular schedule and routine where possible as you would for any job.

2.      Ideally establish a time of day and market that you know works for you.

3.      Consistency in method and approach is crucial

4.      Aim for steady growth in profits with a view to long term account growth. Do not gamble aiming for massively unrealistic short term gains.

5.      Avoid over trading. Only take the valid trade setups as they appear.

6.      Patience and discipline is critical

7.      Never chase losses or try to guess the market

8.      Never double up trade sizes to recover losses. This is gambling and will result in blowing out your account.

9.      Plan your trade a trade your plan

10.  Fear and greed are the 2 most powerful emotions that traders will face. Be aware when these forces arise and walk away from trading for the time being. There will always be another trade.

11.  Set realistic achievable goals each trading session. An example would be to have one more win than loss and when achieved, end the trading session.

Whilst this appears conservative keep in mind that with 2% of account size risked on each trade with a 1:1 reward to risk ratio, if this goal is achieved on a daily basis then a monthly account growth of 40% non-compounded will be achieved!

12.  Keep a spreadsheet of trades to track win/loss records. This will allow you to immediately identify which methods are working and which are costing you.

MONEY MANAGEMENT

Finding an entry and knowing how and when you will exit your trade is only part of trading successfully. Risk or money management is another key factor and is equally as important.

Formula to calculate your position size for any futures contract or account size is:

Dollars willing to risk / (Ticks at risk x Tick value) = Number of contracts traded

Dollars willing to risk is typically 2% of current account balance. In the case of a $10,000 account most traders would risk losing $200

Ticks at risk is the difference between your entry price and stop loss order.

Tick value is how much of each tick of movement is worth in dollars.

Number of contracts traded is the size of the position you should take given your entry, stop loss and the amount you’re willing to lose.

Tick values and other contract specifications can be found in the following table.

Remember to always demo trade before trading real money so you are familiar with the platform and trade position sizing.