Every Forex trader is looking for Forex tips and tricks that will help them become better traders. Forex trading is not just about tips and tricks it is a lot more than that. 

While it may seem profitable to dabble in multiple currency pairs, it is not the best option to begin with. A single currency pair that you understand, like the currency of your native country, will allow you to gauge the volatility of currency exchange. As you progress, you can branch off those currency pairs when your confidence has increased. 

When you first start Forex trading, ignore your profits. For the first 20 or so trades, focus on your percentage of winning trades, instead. Once you prove to yourself that you can identify trends and place trades appropriately, you can increase your trading profits in many ways. But this will never happen if you don’t first achieve a consistent, positive percentage of winning trades. 

Trade when the markets are closed, if possible. This eliminates all emotional urges and makes you focus on your plan and your overall Forex goals. If you trade when the markets are closed you can base your decisions on facts and probabilities instead of focusing on what others are doing. 

When you are trading Forex you should be aware of how stable or volatile the market you are investing in is expected to be. By having this knowledge you can more effectively time when to hang on to or sell your investment. It will also reduce the chances of the investment dropping unexpectedly something that nobody wants. 

You are just starting out in Forex trading. You just made a risky position and it paid off big! Do not break out the champagne just yet. A solitary trade that turns out profitable feels good and you should enjoy the feeling. But before you decide you are successful, examine performance over a longer time frame. It is the sum of all your trades that dictates your success, not your individual high points. 

Most experienced traders will never trade where the possible gain is less than twice the loss. No one is 100% successful in trading the Forex markets. Sticking to a two-to-one reward to risk ratio will protect a trader from the inevitable deal that goes wrong. 

A great Forex trading tip is to never get impatient and reckless with your trading. It is better to be out of the market than trying to get out of a bad trade. Only trade when the market conditions are right for you to trade. 

To be successful in Forex trading, remember to follow trends. Rather than trying to beat the game, work with it. When the trend is up, it’s not time to sell, and when the trend is down you don’t want to buy. Trying to work against the trends will require more skill and attention, which will develop with more experience. 

Another great Forex tip is to make sure that the broker you choose is okay with day trading. It’s no secret that most brokers don’t like day trading. If your broker notices that you’ve made money day trading, they may take steps to close your account. 

Forget the Elliot Wave, Fibonacci theories, horoscopes and crystal balls. Prediction is for mystics and losers. To have the odds on your side, watch the Forex chart and, while being careful of false breakouts, only trade the reality of price change after a confirmed market turn. Know that practice makes improvement.

Be Sociable, Share!

Tags: , , , , , , ,

Tagged with:

Filed under: Forex Tips

Like this post? Subscribe to my RSS feed and get loads more!