There is no such thing as generic in forex trading; the solutions that work for one may lead to losses for another. You need to find and work with a system that is customized to your needs and you are comfortable and confident with. Above all forex trading rests on your personal discipline to see things through, to know when to back out and when to let a seemingly good-looking trade go by.
Basic red lights to avoid
Exit a trade when you are losing on a specific position, or your losses can rise. Set your stop losses not on the balance in your account, but on market related information. Never trade when the market is excessively volatile or liquidity is sluggish, it is better to hold back. Exit and enter a trade based on market information, not on your hunches.
Do not try to use the same system trend, up and down markets, keep to a system for each specifically. During a blow-out phase of the market make sure to stay far away from risk managers. They tend to go into margin call position liquidation order frenzy without checking overbuying and overselling. Trust your inner voice, when your instincts warn you that a trade is dodgy, listen to it and walk away.
On the forex markets, rumors fly faster than the speed of light. Buying on a rumor is okay, but never sell until you hear concrete news. Never break the rule of getting into the market late and getting out early or you could struggle. Lastly, making decisions about trading when you are tired or ill can be risky, as your concentration levels are not likely to be at their highest. Take a break and come back when you’re feeling 100%.