Forex Trading Tips – Don’t Start Forex Trading Without Knowing The Rules

When you start something new, you have to know the iron rules in order to play the game right and starting forex trading is no exception; know the rules or lose everything. Apply these forex trading tips in your trading career to make steady profits, keep your account save, and play by the rules:

Never Make An Entry Without Doing Analysis First

There area always times when you will stumble upon something that looks very promising, perhaps from news or trends. These ‘hunch’ may bring you profits once or twice, but it just coincidence, you will never survive in forex trading if all that you got is ‘hunch’ instead of proper analysis and logical decisions.
This has happened to a lot of the traders when they began; they manage to make a profit by speculating, convinced that they already grasp the secrets of forex trading, and start offering forex trading tips to their acquaintances. This attitude is identical to a gambler in a casino: throw the dice and pray. You will lose everything in no time with this behavior.

Learn Step by Step

Forex Trading has many factors and elements; it is purely not possible to grasp it instantaneously. If you are a novice, do not deposit USD10,000 in your new account and have various tests with it. Trading currency is similar to gambling; when someone lose, there are always a winner at the other side. These winners will finish your USD10,000 in no time and by reading this forex trading tips you have learned to avoid it.
The best ways to go is take it slow. Start with a practice/dummy account while learning. You can test a variety of strategies, currency pairs, expert advisor, and trading signals there without worries. If you have found a system that works, you can move to a mini account for further test. Nevertheless, if you believe in your system, go on and open a live account.
By “system that works”, I refer to a system that can generate profits on regular basis at the end of the month without you have to spend your entire time maintaining your open positions. If you have confidence in it, learn to control your emotion and let it do the task.

Use a Credible Forex Trading Platform/Online Forex Broker

Regardless of how good your system is, trading in a poor quality platform will kill your opportunity to achieve profits. Most of forex broker will provide you free trading platform, but you need to check some things there:

Support all currency pairs that you interested in. At the very least it must support common currency pair such as EUR/USD, GBP/USD, and USD/JPY.

Support stops and limits; these are important for your risk management.

Access to charting, news, research, and advices; basically all the resources that you need to decide a transaction. If possible, a daily forex trading tips can be useful too.

Customer support available. If possible, get the one that provide 24 hours support so you can contact them any time when you get problems.

Currency trading is a global business, so it is great if your broker take deposit in various currencies.

Simple procedures applied in their services, including withdrawal.

Discover how to Use Stop Loss and Take Profit Order

Stop Loss and Take Profit are pre defined orders that you put to close your trades at particular price. Instance: you buy GBP at 1.678; then you place Stop Loss order at 1.648 to limit your loss by 30 pips. You also put Take Profit order at 1.708 which means you will close it when you get 30 pips profit.
This is very important so that you can prevent your emotion to get involved on the “close decision” and mess it up. If the market is move against you, you won’t close the position since you are hoping the market to swing back to your side, thus turn possible loss into profits. In most cases, this will only bring you more losses. I can’t stress this enough; this has made many traders fall miserably. If you don’t remember everything that I mentioned in this forex trading tips, remember this: emotion is only going to make your trader career short.
The other scenario: The market moves as you wish and you see potential profit, but you won’t close it since you want as much profit as you can get. Nobody know when the market will turn against you and when it does, it usually already too late. In both scenarios, greed is the one in movement. But when logic dictates, you can control greed.
Bottom line: no need to rush everything when you study or trade forex. Take your time to learn the rules, experiment, practice, analyze, and read several forex trading tips for the day. But I don’t suggest you to research it yourself because it can be a long and painful process.

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