Top seven tips for Forex Trading

Discussion in 'Forex Education' started by Malvika, May 17, 2017.

  1. Ma

    Malvika Member
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    As simple is Forex trading to get into, the harder it is to master, due to its technical and economically challenging nature for the traders at all levels. Besides having right Forex education, it is imperative to work smartly to succeed in a trade.

    Following are the top seven tips for a successful trading career.

    An effective trading plan: Trading plan provides consistent cash inflow to a trader. Finding an appropriate broker is the first step of planning, who can act as a mentor during the entire trading process.

    Next is opening a demo account and being familiar with the fundamentals of trading. After this, it is important to set targets and create own’s objectives.

    Smart capital investment: It is clever to avoid greater deposits, and increase the account size based on organic gains. It is pointless to increase the account size simply by pumping capital, without any win in a trade.

    Determining an adequate leverage value: An account should be able to stand the high volatility of the currency fluctuations. Large accounts can avail the benefit of using higher leverage value than smaller accounts. However, the losses may also be higher for them. Beginners are recommended to start with lower leverage value because of the small nature of their accounts.

    Precise Risk assessment: This involves analysis of relative and absolute values. It is based on the number of pips in stop loss, instead of investment. The recommended maximum risk for trading industry is 2%. However, this is true for very large accounts. For the forex account that is not too large, risk factor of 10%-20% can also be considered to yield more profits.

    Practice and Patience: It is good to focus on single currency pair, and expand with skills. Trading widely on a specific pair can provide a good practice to both the beginner and an advanced trader.

    Learning with time: Studying one’s success and failure and following the basics of trading, rather than relying on any rumors and hearsay adds up to the chances of winning.

    Practicing automated trading: One should rely on automation, rather than forex robots or any other wonder methods. Various online software methods are available to observe trends and statistically study them for an effective trade.

    Sure these tips do not guarantee a winning trade each time. However, one can avert committing the same mistakes as other traders.
     
  2. Priya

    Priya Member
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    Any trading method, the trader must have a very good money management in place.:)
     
  3. ke

    kerstin25 New Member
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    Never stop learning. Always make sure that you learn everyday. I started learning Forex using my broker's Forex school https://alpari.com/en/school/. I also get ideas from other professional FX traders. It's great that we have online communities like this forum because we get to ask questions and get insights from other fellow traders.
     
  4. dv

    dvid New Member
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    You must have a trading plan. Without one you are just simply gambling the markets.
    You need to have money management. Otherwise you won't know how much to risk properly.
    Minimum of 3 months of demo trading. Practise your trading strategy until you master it. After that try it out in real conditions.
     

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