What are the tips when it comes to Forex Trading? There is a phrase known as Forex Tip Trading where you start Forex Trading with quality tips. You know, many start up Forex Traders who are newbies and lack the discipline have lost a lot of initial money in Forex.
Worst of all, their initial failure caused them to have negative views of Forex. This group of people has been tagged as Forex losers. The good news is that we do not need to be in this category. We have compiled through our experience, 18 Forex Trading Tips that are generally acknowledged amongst successful Forex Traders. Are you ready?
Forex Tip Trading Number 1: Know your personality.
How much can you tolerate with risk taking? What are your needs and financial goals? Do not allocate too little or too much in terms of Forex Trading capital. This is the foremost important Forex Tip Trading. You must know what you need, what your financial objectives are...Spend some time to think about this before you ever want to attempt Forex Trading.
Forex Tip Trading Number 2 : Now that you have known yourself, the next step is to plan and set your goals.
Are you aiming for Financial Freedom or just wanting to get some extra cash? These are two very different goals. What is the maximum time frame you would devote your time and money to meet this goal?
Forex Tip Trading Number 3 : Choose a broker carefully.
You might think that all brokers are the same, but in reality they are not. There are fake and unreliable brokers out there who are out to get all your money and breaking the relationship with you. Align your goal settings with the expectation of your broker. Do they match? If you are not getting a broker but a Forex Trading Software, then similarly, check if your goal settings are in alignment with your expectation of the Forex Trading software.
Choose your type of account and leverage ratio according to your goals, your needs and expectations. Most brokers will talk a lot about a variety of accounts which might be extremely confusing but there is a general principle that you must follow to really work, which is the lower the leverage, the better is the trading. The lower the risk, the more opportunities you have in your trading. If you are an extremely newbie in Forex, do get a trial or mini account and do some study. Make the safest choice that you can possibly make especially at this early stage of your Forex Career.
Forex Tip Trading Number 4 : Start Small.
And increase the size of the account as profits are coming in... We really love this tip because this is the essence of Forex Trading. Start small...test out the Forex Account to see if it really works. If it doesn't, at least the small loss wouldn't be that painful. Once you can sense profit coming in, increase the amount with the profits gain. However, on the other hand, do not put all eggs in one basket. Try using multiple accounts with different brokers when you have much more funds to play with.
Forex Tip Trading Number 5 : Focus on just one pair of currency.
The currency market is extremely complicated. It is very difficult to master the entire global currency structure. We suggest that you just focus on one pair of currency that you really understand. Begin with the trading currency where you are living in is a good start.
Forex Tip Trading Number 6 : Do only the things you understand
It is like taking an exam where you can answer those questions that you understand. You can feel that marks will be given to the questions you really understood and attempted. Likewise in the world of Forex, many traders fail because they do things which they do not understand such as trading based on rumors or speculations. They are in for a surprise! Therefore, only act upon the things that you really understand and that you are aware of the consequences that you are fully positive about.
Forex Tip Trading Number 7 : Do not add burden onto your losing position
Sometimes you may have the tendency to add to a losing position, justifying that it is unknown where the currency pair would be heading since the future is unknown. However by doing so, you are just adding stress onto yourself and this concept is like Gambling. If you are a gambler, then you may want to oppose this Forex Tip Trading.
Forex Tip Trading Number 8 : Controlling your emotions
Forex Trading will work only if emotions are kept to the minimal and engaged in a logical and rational manner. Traders are still humans. Although we have emotions, but we have to try to keep them from manifesting greed, excitement, panic or fear. Hence, in Forex Tip Trading Number 4, we advised you to start small so that you can train to minimize emotion and maximize the logical sequence of thoughts and analysis. The underlying truth is to connect logical approaches to meeting your long term goals.
Forex Tip Trading Number 9 : Note-taking...What are your successes and failures?
A successful trader will keep a diary that records the successes and mistakes to discover what works and what does not.
Forex Tip Trading Number 10 : Systematize your Forex Trading
As mentioned in Forex Tip Trading Number 8 that we should control our emotions, one way is to systematize our Forex Trading based on past experiences so that we have noted the patterns and trends of successful and unsuccessful trades. You will be able to make decisions base on past experiences. This way, you are actually systematizing your Forex Trades.
Forex Tip Trading Number 11 : Do not fully rely on Forex Robots, Forex Gurus etc.
Do not be surprise that nowadays the so called Forex Robots or Forex Gurus are getting more and more unpopular because most of them focus on profits more on the sellers' perspective than the buyers'. Also, interestingly, if they are so smart and clever, they would already have been millionaires themselves without offering their services.
Forex Tip Trading Number 12 : Apply KISS:Keep it Simple, Stupid
The good thing about Forex Trading is that you do not need to be a genius or mathematical geek in order to perform Forex Trading. Rather, you need a plan and a vision. Sticking to your goals and successful practices with discipline, you will be able to succeed. Hence, do not attempt to explain too much, analyze too much, giving reasons to past failures.
Forex Tip Trading Number 13 : Don't play against the market. Be humble and patient.
Do not trade against the market. It is like swimming in a super big and deep ocean. Join the trends so that you can relax your soul, mind and body. Also, resist the idea that you are the smartest person in the world when you have gained some success in Forex Trading. Be humble. The interesting thing about Forex is that at the end of the day, it actually moulds our character to be humble and patient. Forex is like a moral therapy!
Forex Tip Trading Number 14 : Recognizing that Forex is all about probabilities
Interestingly, Forex is all about the analysis of risk and probabilities. There is not one way or only way to make profits in Forex. The trick is to position ourselves that losses are definite but successes happen more than failure. Hence, successes outweigh failure which makes it a general success. In order to position ourselves this way, we need to manage our risk allocations in alignment with the understanding of probability and risk management.
Forex Tip Trading Number 15 : Share your experiences just like what we are doing and make your own decisions.
Help others and allow others to help you...By considering the opinions of others, you actually gain more experiences in making better decisions in the future. At the end of the day, you have to make your own decisions since the money belongs to you.
Forex Tip Trading Number 16 : Money Management
Money management is defined as how we manage the money such that losses are minimized and gains are maximized. You should engage in money management when you are starting to make profits. Money Management should be the core of your forex trading always.
Forex Tip Trading Number 17 : Study the market, its mechanism that lead to the price action
This is not the most important tip but this is very useful when you start to gain some profits from Forex and you start to analyze the mechanisms behind them through the analysis which can be very insightful for future decisions. We have to warn you that a proper attitude towards Forex Trading is far more important than this Forex Tip Trading.
Forex Tip Trading Number 18 : The final Tip - Don't give up.
If you have derived a plan, capital allocation that you can afford to lose, having a right attitude and discipline, then success is on its way. All you need to do is not to give up...taking comfortable baby steps is the best way to achieve success with a right frame of mind. At the end of the day, we expect ourselves to have good health, good wealth and good self-cultivation...
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