If you want to be a successful Forex trader, there are some things that you need to know. This article isn’t just meant to beginners but also to experienced traders because sometimes, we all seem to lose focus on our main goals…
So, here are 9 Forex tips that I’m sure will help you make profits:
1 – Cut Your Trading Frequency: Most people is convinced that the more trades they make, the more profits they’ll get. Well, this isn’t exactly true. When you’re trading in a small time frame like the 5M, 15M, and even 1H charts, your target for a particular trade will be substantially smaller than if you’re trading in a larger time frame like the 4H, daily or even weekly charts. So, what you should do is focus in longer trends and not in short movements that will only give you 5 or 10 pips each.
2 – Don’t Risk Too Much Per Trade: One of the great advantages in Forex is the leverage you can use. But this leverage can also lead you to lose all your account with a single trade.
3 – Don’t Let Emotions Involved: Unfortunately, this is one of the most common problems around all traders. Even experienced traders have sometimes difficulty is avoiding emotions when they’re trading. What you need to do is to have a system that you already tested in a demo account and that showed you profitability and consistency, and then just follow it the same way when you pass to a real account.
4 – Be Disciplined: If you stop following your system, if you don’t have specific times of day to trade, you need to get disciplined. If you don’t treat Forex like a business, you’ll likely be in the 95% Forex traders who fail.
5 – Be Patient: No matter if you’re winning or losing, no matter if you’re trading every day or just a day a week, you need to be patient. Don’t rush into a trade if it’s not what your system is saying to do. Don’t exit a trade if it didn’t reach your stop loss or target or any other re-defined point you have to exit it.
6 – Use A Stop Loss Or A Trailing Stop: Using a stop loss or a trailing stop is a must. You don’t need to have it placed with your broker, if you don’t want to. But write it down on a piece of paper so that you know exactly when you need to exit a losing trade. If you define a stop loss before entering a trade, you’ll be protecting your hard-earned money.
7 – Use A Trading Diary/Journal: A trading diary is a must have for all serious Forex traders. I know that it can be boring sometimes to fill it with all those details, but sooner or later you’ll appreciate the fact that you “lost” all that time. A trading diary allows you to see the mistakes you’re doing so that you can correct them and learn from them. And remember, be as detailed as you can. It really pays off…
8 – Start With A Demo Account: If you just developed your system or if you just bought one, don’t use it right away in your real account. Make sure you test it deeply in a demo account first to see if it’s profitable and consistent. Only then, move to your real account.
9 – Be Sure You Don’t Need The Trading Money: Never, but never trade with money you cannot afford to lose. You need to be realistic and have the conscious that in Forex, sometimes you win and sometimes you lose. You can have winning strikes but you can also have losing strikes. If you’re trading with money that you cannot afford to lose, you won’t be able to detach from your emotions. You won’t be trading; you will be gambling…
Some of these tips might sound obvious to you while others don’t. Throughout all my experience in the Forex market, I can say that they’re all important if you want to succeed.
