9 Forex Trading Tips

[Jaculation]

I suggest exploring the market on your own terms. Before trading, you will always have some kind of notion about it. So, it’s better to find out what it is and how you can make the most of it.

 

[Aficionado]

Thank you, this was really helpful. One more point I’d like to mention is -
Correlation of fundamental analysis with technical analysis. Relying on only fundamental analysis, or only technical analysis will not be so potential in the long run. Technical analysis (price chart patterns) helps you look at the real-life price movements, and carry out a trade accordingly. But fundamental analysis helps you understand the market in a wider picture. Correlating both the aspects will enhance your knowledge and understanding of what socio-economic, and political news affect which currency pairs and to what extent.

 

[Runcinate]

The best tip I would like to share is not to believe in what others tell you to do. Instead, determine the truth by researching on your own and then decide if you wish to go ahead with that certain thing or not.

 

[Textuary]

Learn and practise on demo before entering the market. Acknowledge the risks involved in trading and trade accordingly.

 

[Gorm]

I would recommend moving to a cent account over time. ForexChief, for example, has good cent accounts. Because long trading on a demo account is relaxing. One ceases to take trading and deposit seriously. Because it's not real money there and it's not afraid to lose it. It is a bad habit.

 

[Tumultuous]

Forex trading gives you results in accordance with what you do in the market. If you trade nicely and follow your trading plan, you will be at an advantage because you will know what went wrong that could have been done properly.

 

[Scalium]

When you stay focused and know what you are doing, everything will be fine. But if you don’t know what you are doing or the future direction of your trades, it will be difficult for you to trade.

 

[Woolpack]

You will see the forex market from a different perspective which means that you will do well at it only if you trade on the basis of how you take it. If you believe too much in how others are trading and making money, you will never find your edge.

 

[Gorm]

In fact, only a small number of traders are profitable. Most traders unfortunately lose money on forex.

 

[Dopper]

I totally agree! Traders need to befriend the market to have different approaches for making good potential trades. You can learn from others but you can not follow them as what is convenient for them might not be for you.

 

[PriceNTime]

I think too many sleep on point 6 about correlations. A lot of information can be gained by understanding these correlations and what them falling out of sync means for price.

 

[Affusion]

Thank you for sharing these tips! I find that many traders take revenge trades to earn profits quickly, which is not possible. Instead, it is a gateway to failure.

 

[Wavemeter]

Good read. Thanks for this helpful thread.
Another tip I would like to suggest is that - maintaining a trading journal. A trading journal or a weekly journal can greatly help a trader to revive himself, find out his own mistakes, and improve for the better.

 

[Pinnace]

Great tips! Especially the leverage one. I think leverage is a term that most traders misunderstand. Leverage helps traders open higher market positions, but it can also lead to heavy losses, so they should use leverage with caution. It’s important to use TP and SL while using leverage to ensure that they don’t lose big in case the market moves against them.

 

[TildaTilt]

Thank you for sharing these excellent tips. Emotions are the worst enemy of the traders, I have learnt this the hard way.

 

[Bregatte]

One should not trade until one becomes disciplined and consistent enough to trade forex. If one does so, one will lose. With experience, a trader will learn how to become profitable. Rushing the process will only delay the process and nothing else.

 

[Apogee]

Two more important points that the OP seemed to have missed are -
a. Demo trading
It can significantly help a trader form his trading strategy, manage risk, and analyse the market before starting live trading.

b. Trading Psychology
The psychology of a trader plays a huge impact on his trading. Managing one’s own emotions can improve the efficiency of decision making, and overall productivity.

 

[SickRiddle]

Thank you for the useful tips. One more tip which I would like to add is being disciplined as well as patient. Trading discipline is hard to build and maintain but it is very much needed for becoming a successful trader in the long run. And patience is an essential tool that you would need for surviving in the forex market as a beginner.

 

[Scarious]

Love these tips! It works as a good reminder for any beginner that joins here. I think another important point is that traders should avoid over-trading and should stick to their plans and revise it by adapting to market conditions as and when necessary.

 

[Epedaphic]

To make the most of your Forex trading, it’s important to keep a few things in mind. One is that you should always trade cautiously and use market conditions to your advantage. You should also be aware of the risks involved in Forex trading and take steps to mitigate them. Finally, remember that there are many different types of Forex markets and it can be difficult to know which one is best for you at any given time.