Trading forex is fun and even rewarding but at the same time its very high risking game. As every body knows that where there is high chances of winning huge profits at the same time, huge losses could not be ignored.
Now lets come to the point. Here is the must known tips that should be kept in mind before starting trading.
1- A Good Strategy The first and the foremost tip is having a good strategy to start. Without good strategy, you are simply throwing your money and wasting your time. Some time yo will win and some time you will loss but you have to stick with your strategy because every time forex market conditions could not be same and you will not be in profit all time. So dont worry about some losses just stick to the good strategy.
2- Know what you want to do before sitting on trading table. You should be well aware that what you want to do. I mean what would be your profit target for the day and what s your loss ratio. Without any plan,you will start to loss even if you are in huge profit for the day. Dont just trade and trade and trade. Take your profit or bear your loss for the day and left the trading table. Be prepare for your self.
3- Trading is not 24-Hours GameYou should know that trading is not 24-hours game. Being in trade every time is not a wise decision. Dont be machine gunner, just be a sniper. Snipe your trade and go have fun.
4- Choosing a good broker Never trade with unregulated broker even if its more rewarding than regulated one. Because most of the time unregulated broker run away with your hard earned money. Also keep in mind, does the trading software suit your expectations? How efficient is customer service? All these must be carefully scrutinized before even beginning to consider the intricacies of trading itself.
5- Using Leverage wisely.Newbies usually use their leverage in very aggressive way. They choose even 1000 leverage and forget that leverage not only goes in their benefit but also on their losses side at the same time. So they blew their account very quickly. Always choose leverage that suits your trading style.
6- Grow your account gradually. It is understood that you cannot be millionaire in one night or you cant double your account in one night If you are here to double up your account in just on night, trading is not for you. Just left your trading seat and withdraw your deposit before you loss all in one night. Just be patient and take small profit until you grow your account gradually.
7- Take profit and accept loss. Forex trading is not about profit every time. We should prepare for losses at the same time while expecting profit. Many traders close thier trade on just 20 USD profit and stick with the losing trade even if it is 200 USD in loss. So keep good ratio between your trades. Dont allow just one trade to blow your account.
8- Set Take profits and stop losses Never underestimate the forex market. It could be even worst than you think. Always use stop loss to avod unexpected market conditions to avoid huge losses. Use take profit and trade like a pro.
9- Try to follow trend. Dont think that if market goes down to 100 pips it must go up. It is worth to mention here that market usually follow big tends there are very few chances that market is gong down and it will go up in meanwhile. For example, you think that if the market is going down and down now what has happened abruptly that it will go up in the evening. For better understanding, market works like a ball if you fell it from height, it will first touch the ground then and little bit up and then again down and little bit uo but with very less force to up and finally it will touch the ground. So always flow with the trend if the trend is up buy the market if the biases of market are down sell the market dont try to go against the market.
10- Use proper money management Always set proper money management. Dont expect to double your account in one night as i mention above. use a portion of your deposit for today profit and loss and left trading when you are done either side.
11- Keep an eye on newsNever ignore major new events that may cause unexpected market behavior. Stay aware about major market news while trading.
