1. Invest in a good Forex trading education.
2. Trading in the direction of the trend will give you the best chances for success.
3. Make a demo account , and use it to learn and understand Forex trading. Keep in mind that you should be realistic and treat your demo funds as real money; otherwise, there is no way you can learn from demo trades.
4. While there are a lot of companies who make money by selling software which aims at predicting future trends, the reality is that if this software really worked, these companies would not be giving the secret away.
5. Trading is stressful work, and there will be a lot of setbacks on your way to the peak. Emotional trading may force you to open a trade too early and eventually lead to a loss due to a wrong entry point. Control your emotions by staying cool and calm, and focus on your long-term goals.
6. Just because the Forex market is online twenty-four hours a day does not mean that you have to trade all that time. If you are doubtful, do not trade at all. Instead, analyze the market and use the knowledge you get to make more profitable trades in the future.
7. Because trading is always full of emotions, you must have a trading strategy which includes a set of rules you stick to. This will help protect you from yourself.
8. Avoid trading strategies which are too complex to understand and which use a lot of different techniques. They can distort your judgment and you will miss a lot of good trading opportunities.
9. Leverage - Forex trading has large potential rewards, but also involves large potential risks. As a novice, don’t risk more than 1–2% of your margin account on any given trade. Over the long run, this will give you a chance to make a profit while reducing the probability of taking a loss.
10. Develop a habit of reviewing and analyzing your good and bad trades. Then you will have a much better sense of what will work best in your future trades.
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