Forex Trading Tips
For those who have followed our Forex Blog and our Forex signals back then should have known that it has always been my goal to write and publish a Forex book (or at least an ebook)… Yes, System 3 was one of the Forex trading strategies that I have published as an ebook here in Wanwaihui but that wasn’t really enough – I wanted a full-fledged book.
Nonetheless, my schedule and personal planning has really let me down on this department. I feel that I should share bits and pieces of Forex advices when they have come to my mind. And one day, perhaps by compiling them I shall get a book. Anyway, I have listed some Forex tips that I felt have immensely guided me in my FX Trading career, here goes:
Keep up with your Forex education. You can do this by trading on multiple accounts; one real, and one fake. Use your fake accounts to test the waters of other currencies, and find out which ones seem like safe bets. Since you will not be using real money, you will be able to freely dive in and learn the most about the market.
Leverage – Double-edged Sword
Use leverage carefully. Leverage can quickly make you large amounts of money, but if the market swings the other direction, it can cause you to lose large amounts of money just as quickly. Knowing your limits when it comes to leverage is important, and should be based on how much experience you have in the market.
Watch for signs of addiction. Trading in markets can be seen as a form of gambling, so be careful not to get addicted. Make sure emotions do not cloud your trading plans. Do not become completely preoccupied with trading, and above all else, make sure you have the ability to control your trading impulses and follow your Forex Trading Strategies.
Everyone For Himself
Remember that you are not trying to challenge that market. A big mistake that many beginning traders make is believing that they are out to fight the market, when realistically they should be trying to read it. Keep in mind that the market is not out to get you, and that effectively reading it is the key to maximizing your profits.
Proven Forex Trading Strategies
Use proven Forex trading strategies for trading. Revolutionizing the market is always an idea in the minds of new traders, but there are reasons behind the methods used by experienced traders. These proven Forex strategies work well for the entire Forex system. Once you become a more experienced trader, you can experiment with other ideas, but a beginner should use what is tried and true.
Have a stop loss in place. A stop loss will prevent you from going below a certain amount, and this is extremely beneficial in several situations. If your internet connection were to suddenly go out, and a market takes a turn for the worse, you would be unable to pull out before it was too late. A stop loss prevents this from happening.
Your Personal Trading Signature
Be confident in yourself and your methods. If you worry too much whether you are doing things right or wrong, you are setting yourself up for failure. Learning your own method and becoming confident in it is the best way to encourage yourself to take risks and make brilliant profits.
Take a Bad Trade As a Man
Do not justify your bad trades. Some traders will attempt to make themselves feel better by saying that even if they lost money, it is good for the country whose currency they lost on. This is detrimental to a trader’s plans, as it makes them more inclined to lose more often, because they can justify it.
Choose Your Forex Broker Carefully
Beware of fraudulent Forex Brokers. Even on a global market like Forex, fraudulent brokers make their way in and attempt to defraud new traders. Prevent this by ignoring Forex brokers that offers abnormally large sign up bonuses! If the bonuses or spreads offered seems too good to be true, it probably is.
Enjoy the Risks
If you are a person who cannot handle risk-taking, then Forex trading is not meant for you. The market jumps up and down on a daily basis, and if you are not prepared to manage the stress of these events, you should probably not be involved in the trading process.
Having been in the Forex market for years, I fully understand how difficult and stressful Forex trading can be without the correct trading psychology, strategies and support of your important ones. Take the above ideas by heart and I hope they could one day (today!) be of use towards your Forex trading endeavors.