These Currency Trading Tips aim to help you avoid making the common mistakes that hurt your account balance.
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Always have a solid trading plan
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Never Deviate from your plan
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Make sure your trading plan includes the amount of your account you want to risk for each trade
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NEVER under any circumstances overtrade
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Follow the trend. It is your friend afterall.
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Don’t be tempted to listen to “experts” and piggy back them. Stick to your plan
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Forget about buying other peoples Forex Forecasts and such like. If they were good traders, they’d be trading, not selling their forecasts.
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Spend at least several months trading a demo account before trading live
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Only ever trade risk capital, basically don’t bet the farm!
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Forget looking for the perfect system, it doesn’t exist
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Do your best to be an emotionless trader. Emotions and trading are a potentially dangerous combination
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Write down your mistakes and try to learn from them.
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Always triple all of your orders to make sure they are correct
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Ensure you have a solid understanding of lot sizes, rollovers etc before trading live
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Always stay humble to the forex market. Never get cocky. You are a little fish, It is big enough to swallow you up.
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Forget trying to find an easy route to success. There is no free lunch.
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Never be blind to the risk of trading
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Be prepared to accept the risks before trading live.
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Choose your broker wisely. Brokers can go bankrupt. Make sure your broker is regulated.
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Don’t blame your broker for your dwindling account balance. You chose that broker, it is your fault.
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Accept that forex trading is hard and you will have losing streaks of trades. Learn to deal with the emotions that come with these.
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If the stress of trading is getting to much for you, take a break. Take as long as you need.
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Keep leverage very low, unless you really know what you doing with it.
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Start off trading $1000 lots, also known as microlots
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You are a little fish in the big market and don’t forget it.