When we first start trading in the Forex market we hear about scalping, Fibonacci, signals, indicators, demo accounts and all sort of other things that seem like a totally different language to us. We can’t understand it and it’s overwhelming. It is always nice to have some basic rules and
Forex tips to guide yourself right from the start, so you don’t feel left out or like you just fell off the wagon.
Forex Successful Traders follow basic Forex Tips, no matter how experienced they are because they know how important they are while trading. The ones who are not following them can fail miserably and unfortunately 97% of the traders do fail. Don’t be part of them!
7 Forex Tips you should always remember:
• No emotions in trading
• Always start with a demo account
• Do your proper research before entering a position
• Follow the trend
• Keep to your stop-loss levels
• No trade days are better than bad trade days
• Choose the right day to trade
No emotions in trading. Plan your trade and trade your plan! Make sure you put lots of bright post-its on your computer screen to remind you of this very important rule! If you can’t follow this rule, you shouldn’t be trading at all. Even thinking can be dangerous because every thought is accompanied by emotion. So, let me say it again: Plan your trade and trade your plan!
Always start with a demo account. Everybody is inpatient especially when it comes to something as exciting as Currency Exchange, but you need to make sure you know what you are doing before you start betting your own money. Don’t gamble in Forex! Chances are you are going to lose, and lose big! Study Forex trading, in a class with a Forex Successful Trader as your trainer and you will know when you’re finally ready to move on to a real account.
Do your proper research before entering a position. Look at the market, the indicators and always make sure you look at a larger time-frame than the one you are using for trading, so you can get a better overall idea of the market and the trend on the specific currency pair you’re looking to trade.
Follow the trend. Do not enter a position before you completely understand the direction of the trend. Look at different time-frames, use Fibonacci, check your market signals. Always move in once you’re sure you know if it’s an uptrend or a downtrend.
Keep to your stop-loss levels. Do not let yourself spiral down. If you start losing pip after pip on a trade you were sure was going to bring you profits, do not do what many rookies do and stay in hoping the losses will eventually end and you will start gaining back your money. Never brake your stop-loss level. Stick to them religiously.
No trade days are better than bad trade days. There will be days when it is better for you to just shut down your computer and come back to it the next day. Forex Successful Trader do that when the market is too random. You should do the same if you want to hold on to your profits.
Choose the right day to trade. Even though the Forex market is open 6 days a week, there are certain days when you should stay away from trading if possible. Those are not impossible days to trade, but not as good as the others. Monday the markets are starting up, Friday they slow down, so the best days to trade are Tuesday, Wednesday and Thursday. Keep in mind that Tokyo and Sydney sessions are on completely different time zones.
Write down these tips and follow them on a daily basis in order to become a Forex Successful Trader!