Forex Trading Tips
FOREX MARKETING
TIP 1 Read the books which cover trading psychology
you read or do anything else. If you don’t, I’ll say I told you
so when you hit a failure barrier and don’t know why.
FOREX ONLINE
TIP 2 Stop loss policy - you MUST have one and practice, more
practice and even more practice at sticking to it. It will not be
easy but it is an essential discipline to profitable trading.
BEFORE FOREX
TIP 3 Trading plan / system. Again, you MUST have one!
Then you must practice sticking to it. Do not try and second
guess or trade against your indicators - wait until they give
you a concise signal before acting on it.
FOREX CHARTS
TIP 4 TRADE WITH THE TREND. DO NOT trade against the
hourly trend of the market unless you are VERY certain the
market has turned. Check this by watching a long term moving
average (say 80 SMA on 15 minute chart)
TIP 5 Learn to sit on your hands and not trade! It’s better to
wait for good quality trades than take a mediocre one and
loose money. A day of no trades is better than a day with
one loosing one. If you don’t like the market, just walk away.
It will always be there later.
FOREX TIPS
TIP 6 Don’t set yourself false targets and expectations.
Trading is not an EXACT science and if you do you will
only become frustrated by your failure to meet them.
Take what the market gives and be satisfied. Greed will
kill you as a trader, both mentally and monetarily. .
TIP 7 The market is rarely your friend in a trade that goes
against you. Cut your losses quickly and accept them as an
inherent part of trading. You will not be able to trade without
some loosing positions. Manage them well!
TIP 8 Try hard not to get out of profitable trades too early.
Try operating a trailing stoploss of say 15 to 20 pips behind
the trade (on 5 minute timeframe) and maximise your good
trades by letting them run. Be patient!
TIP 9 Ensure you fully understand how to generate and use
pivot points and camarilla points on your trading platform.
These are crucial decision points for daily trading and you
will struggle without them.
TIP 10 DO NOT overtrade your account. Read up on money
management in trading to make sure you fully understand
why this is important and develop a strategy which fits with
your personal trading capital. NEVER risk wiping out your
account because believe me, it can happen.
I’ve done it twice myself!
FOREX TRADER
TIP 11 Learn about FIBONACCI levels and how to apply them
to your charts.
TIP 12 Keep your trading system simple. Do not have too
much information on your trading screen. It is unnecessary
and will only cause you to be confused and delay you making
your trading decisions.
FOREX ACCOUNT
TIP 13 Always think in terms of probabilities. Trading is all
about thinking in probabilities NOT certainties. You can make
all the “right” decisions and the trade still goes against you.
This does not make it a “wrong” trade, just one of the many
trades you will take which, through probability, are on the
“loosing” side of your trading plan. Don’t expect not to have
negative trades - they are a necessary part of the plan and
cannot be avoided.
TIP 14 Ensure that the candle is fully formed on the timeframe
you are trading BEFORE you enter your trade. Trade what you
see, not what you would like to see.
