These 8 essential Forex trading tips are in no particular order of importance there all important!
1. Don't Trust Forex robots or Expert Advisors
These are a guaranteed way to lose your money quickly. Naïve and greedy traders buying thinking they are going to get a life long income for a hundred dollars or so - it looks to good to be true and it is. Avoid these cheap get rich quick systems and do it on your own.
2. Learn Technical Analysis
You can learn to trade in Forex quickly, so make sure you get the right education. By far the most time efficient way to trade is to use Forex charts and simply follow the reality of price change as it occurs on the chart, this may sound simple but prices trend and if you can learn to trade these trends, you can simply lock into them and hold them for big profits.
It should 0nly take a couple of weeks to put a robust Forex trading strategy together and then you can start making big profits in 30 minutes or less per day.
3. Keep Your System Simple
Your system should only consist of chart support and resistance and a few confirming indictors. Never make your system complicated or it will break, in an odds based market like Forex, simple systems are more robust so always keep your strategy simple.
4. Don't Over Leverage Your Account
You can get leverage of up to 400:1 with most brokers but don't use it all! Novice traders should use 10:1 maximum leverage and even after they become experienced, they never use all the leverage granted to them. Over leveraging destroys more accounts than any other single reason.
5. Use Stops and Accept Short term Losses
If you want to win, you need to learn to lose short term and keep losses small. Never let losses run and always use stops. Forget your ego and don't angry when you lose, all traders need to take losses, while they wait for gains. The best traders always keep their losses small and you must to.
6. Run Your Profits
Many traders snatch their profits to quickly and never run them but unless you run your profits, you will never cover your inevitable losses - so if you have a winning trade have the courage to milk it for all its worth.
7. Always Understand Discipline is the Key to Success
If you have a trading system you need to apply it with discipline and not deviate from it. In a losing period many traders simply get frustrated and over ride their rules and if you do this you simply have no system and will lose.
8. Have Confidence in Your Trading Edge
When trading Forex, you reply on your skills and judgement and success comes from within. You must have confidence in what you are doing and know why you will win. This will allow you to trade with discipline; cut your losses and have the courage to hold your winning trades to achieve long term currency trading success.
Anyone Can Win at Forex if they Want too!
Anyone can learn to win at Forex and although you need a good method, you also need the right mindset to trade with discipline.
Success comes from a good Forex education, so get one and you will be well rewarded with huge long term gains trading the worlds most exciting investment - global Forex.