Best Forex Trading Tips

Best Forex Trading Tips

These forex trading tips will help pave your way towards

• Follow the trend: Successful trading requires trading with the trend. However, if you intend not to trade with it, you must have extraordinary skills, attention and courage.
• Watch out for larger trends: Look at time frames larger than those you are trading with. This helps get a bigger picture of the price movements.
• Trade in the most suitable and comfortable time frame: Trade within a time frame that is the most comfortable for you. The time must be enough for you to analyse the market and trade well.
• Trade calm: Do not let your emotions influence your trading decisions. For instance, if you lose a trade, do not get revengeful; while winning, do not get greedy. Overtrading adversely affects money management and increases risks. Typically, traders should not risk more than 2-3% of their total trading account.
• Know yourself and your requirements: Understand yourself and identify your goals. Then, assess your risk tolerance and identify the right capital allocation for your needs.
• Stick to your plan: Merely creating a goal and plan is not enough; you must also stick to it. The planning phase should also include defining failure and success, the trading time and the time for trial and error.
• Choose broker carefully: Choose a reliable broker that matches up to your expertise and goals. Also, check their trading platform, customer service and trading styles.
• Start small: When creating an account, begin with a mini account and graduate to standard accounts, as you learn and practice. It is best to start with small sums and low leverage and add to the accounts through profits.
• Focus on a currency pair before expanding: Beginners must trade in a single currency pair, for instance, their own country’s currency, before expanding. They can also start with a currency pair that is the most liquid or widely traded.
• Study your success and failure: Keep a journal of your trading activity to understand your best strategies and methods. This enables you to monitor your mistakes and successes carefully and learn from them.