'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by 
I thought it timely to post this as I have received a few comments lately asking for specific prediction on the EUR/USD.
For those of you who are new to trading please learn this one rule right away and never forget it. No one can predict any specific market. Certainly some annalists can come close or be right some of the time but this is quite rare.
The way I trade and what I always recommend to all traders is to never risk more that 5% of your account on any trade by way of the use of a stop loss. NEVER GO OVER THIS! And in fact 2% should be your limit.
You should never enter a trade unless you have written the following down.
- Where is my entry price point and why?
- What is my stop-loss that I will NOT go over?
- Where is my profit point exit.
If you can not answer these questions on every trade you make then until you can, trade only in a demo account until you do this every time and you are profitable.
Treat trading like a business. You would never spend money in a business unless you know the exact amount. Do the same with your trading.
If you are trying to find the bottom on the EUR/USD this is like trying to catch a falling knife. For goodness sake… Let the knife hit the ground first.
I will write more about "Trading as a Business" in the next blog.
Cheers
the “catching the falling knife” metaphor is EXCELLENT. very well put!!!