Forex Trading Ten Top Tips For Success

Ten Top Tips For Forex Trading Success

So you have finally decided to learn about Forex trading – that’s great…so now what? I have added ten points below from my experience having traded successfully now for a few years so you can get started on the right track with your Forex Trading.

1. A Forex Trading plan/system. You must have one and you must stick to it. Practise with paper trading and then a demo account first to gain confidence and skill with this. It does take some time but you have to trust your skill, which WILL grow.

2. Keep this Forex Trading plan simple. Have you heard of ‘Keep It Simple and Straightforward’ ? This is SO important with Forex trading – I can’t stress this enough. Don’t have too much information on your screen – it will only confuse you and make the decision to enter/exit a trade a whole lot harder.

3. Trade with the trend. Do not trade against it especially when you start out as a Forex Trader. If you are waiting for a reversal pattern to form on your Forex chart, wait until you have confirmation of a change in the direction of the trend before you open a position.

4. You must have a stop loss policy. Even if its a mental stop loss – you must have one and be prepared to exit the trade immediately if this level is hit – no exceptions and no excuses. You WILL lose money if you don’t. Not having the discipline or the control to exit your trade at the right time according to your trading plan will result in losses.

5. Which leads me on to the next point – BE PREPARED with all things to do with Forex trading.

6. Forex Trading is rarely your friend if the trade goes against you. Cut your losses quickly (go back to point 4) and accept them as a cost of trading – nothing more, then move on, forget about them. Err notice its the second mention of cutting your losses – I wonder why that is!

I know you may find this difficult – I did too when I started. Believe me I have done it too…oh the trade might come back to me so I will stay in there. IT DOESN’T WORK. There will always be a next time and as long as you learn from your mistakes you will be fine.

Incidentally: The most successful traders are those who lose the least – not make the most! Now that just underlines the point doesn’t it!?

7. With Forex Trading, learn to sit on your hands and not trade! Always look for good quality trades – the ones with high probability of success. A day without a trade is better than a day with one trade which looses you money. This market has the potential to make you money for a very long time provided you do it the right way – there is pleny of time to trade.

8. Make sure you stay in profitable trades until your exit strategy comes into effect. In this case its good to adopt a trailing stop. Maximise your good Forex trades by letting them run.

9. Learn about Fibonacci levels and how to apply them to your Forex Trading.

10. Money Management, Money Management, Money Management! Be prepared – understand it. Never risk wiping out your Forex Trading account – it can happen. I know it might sound cautious but only risk 1-3% of your whole account size on each trade. If you have limited funds, thats fine, but just trade one currency and one trade at a time to build up your account.

Build the foundations of your trading future by starting slowly and gradually. Start by looking for a consistent 30 pips – if you trading plan is just to trade breakouts then you will gain more pips but this happens less often. At 30 pips you can start with 1 lot/$1/£1 and once you have this down to an art build up slowly. In time you will be able to scale this up to whatever you want! Just keep in mind the 1-3% risk factor and you will do really well!

Oh and here’s something which may be interesting to know…currently profits from a UK Financial Spread Betting account are tax free.

Forex trading isn’t an exact science. Do not set yourself false targets and associate any emotions when trading and keep up with your Forex Education too. Do not ‘expect’ a trade to go in your prefered direction. Trade what you see and if you are wrong then thats just how it goes – move on to the next. Check out www.actionforex.com www.forexfactory.com for some great resources and www.tradeforexfromhome.com for more information.

Hope that helps and thanks for reading to the end! If you liked the post and want to know more about building your successful Forex trading future why not add you details on the sidebar (top right) so I know where to send more information to. I have learnt much on my journey – most of which is sitting on my desktop which I can mail over to you – just let me know where to send it.

Great! I can’t wait to hear from you.

To Your Success.

Annabel

Popularity: 7% [?]

Copyright Forex Trading Info: Fortune Found In Forex | Powered by WordPress | Using the GreenTech Theme