page is for both new and experienced forex traders.
The advice and recommendations come from our
experience in trading and we hope you too would
benefit and become a better forex trader.
Remember that sufficient risk capital is necessary
to trade the forex market. The loss of some
or all of your forex trading funds should neither
affect your lifestyle in any way nor ruin your
morale. Mistakes and losses are an unavoidable
part of foreign currency trading and the sooner
you learn to accept losses as inevitable, the
better trader you will become. You must learn
to take the emotion out of trading. In order
to make proper trading decisions, you can not
afford to lose your concentration - you must
remain focused and stay true to your foreign
exchange trading strategies.
It is advisable for traders to focus on trading a
few foreign currencies rather than many currencies.
It is much easier to learn about and track the behavior
characteristics and patterns of a few different currencies
rather than many.
should always have at their disposal real time news and charts
before trading, to get a better feel of the forex market.
They should regularly check the forex economic calendar to
stay updated on upcoming economic releases and events that
often greatly affect foreign currency rates.
not always follow the crowd. Often, by the time "the
crowd" has reacted, the price move is almost over.
you end up the wrong way in a position, try to avoid the temptation
of quickly reversing the position to "get back"
a loss. Reversing a forex, position is sometimes the right
move, but simply make that move for the right reasons, not
because you let your emotions get in the way of sound judgment.
decisive when "pulling the trigger" on a trade.
If you are confident in your trading strategy, you should
not be overly cautious or indecisive when making trading decisions
because waiting too long could cause you to miss out on a
let greed get in the way. Once you have acheived the anticipated
target, consider liquidating some or all of the trades and
then move on to the next trade. It is natural to hope that
one trade will end up as your "winning lottery ticket"
and make you rich, but that is simply not realistic. Do not
hold the position too long and end up loosing the trade to
appropriate stop-loss orders at all times to cut your losses
and never, ever sit back and let your losses run. Almost every
trader at some point makes the mistake of letting losses run
in hope that the market will eventually turn around in favor
but, more often than not, it simply leads to an even greater
loss. Win some, lose some. Simply learn to cut your losses,
take the occasional lumps and move on to the next trade. If
a mistake is made, learn from it and do not do it again. Avoid
letting your losses run, get into the habit of determining
an acceptable target as well as an acceptable risk tolerance
level for each and every forex trade before entering the market.
Then simply place a stop-loss order at the appropriate price
- but not so tight (close to the market) that the stop could
quickly take you out of the position before the market has
a chance to move in your favor. Using a stop is always the
to pick tops and bottoms is another common FX trading mistake.
If you are going to trade tops and bottoms, at least wait
until the price action actually confirms that a top or a bottom
has been formed before you take a position in the market.
Trying to pin-point tops and bottoms in the foreign exchange
market is very risky, but exercising a little patience and
waiting for a proven top or bottom to form can increase your
odds and somewhat reduce your risk.
but not least, always do your homework and stay current on
global events. You never know what's going to set off a particular
currency on any given day.