Here are 10 great tips from a professional Forex Trader:
- Trade only with the money you can afford to lose. Never trade emotionally or when stressed over debt.
- Start with a Demo Forex account to get practice in the executions and the different software functions necessary to ensure smooth trading.
- The forex market is not a casino or a lottery! You should never depend on luck, but on sound investment strategies.
- Analyze both your successes and failures. Keep a dairy of all your transactions. Review it often and learn from your mistakes.
- Adopt a very strict policy on the limit of losses you are prepared to accept from a trade. These limits should be between 3-10% of the balance of your account.
- Mistakes and losses are common and necessary when trading in any market. The sooner you learn to how and why you lose, the faster you will be able to earn money. Do not you blame yourself or others, and even less the market.
- The main enemy of trader is not the market. Accusing the market is like attacking the world. The biggest enemies of traders are greed, impatience, loss of emotional control and lack of self-confidence.
- Read the opinions of others, but base your decisions solely on your own analysis and your educated feeling of the market.
- Always follow this immutable rule: Cut your losses as soon as possible and keep your winning positions as long as possible.
- Try to work with your demo account as if it was your real account. The more quickly you’re convinced that trading on your demo account is equivalent to trading on the real account, the sooner you begin to develop your own technical trading techniques. You must have the same attitude when you work with your demo account that when you’re on your real account, because the techniques that you use at this point are identical to the ones you will use on the real account. Do not think you learn how to be a trader by entering competitions with demo versions. You must enter a competition only after developing your own trading strategies.