Forex Trading Tips and Tricks:
We Write some good tips to trade in Foreign Exchange or Forex Market. These rules will properly guide you better in Forex or Currency market:
1- Patience is a key and discipline is a rule. if you are in trade and the price of a currency pair going against your position, don't get into fear or panic It is normal in trade and very often a temporary situation, that will correct by itself later. Do not close your position by yourself. Let stops and take profit limits reach their target point! That is why they are used.
2- Greed is a killer so Don't greed too Much: always take profit as we recommend on our signals, we recommend to take 20 to 30 pips and exit from trade if you consider 20 pips are enough if you trade standard lot it becomes 20x100 =$ 2000 on one pair.
3- Trade Infrequently most of times: Most traders trade frequently and always like to be in the market. They think that in FOREX trading if they are not in the market, they will miss a move, or that by trading more frequently, they will make money - No! The big moves in FOREX trading, with the best risk to reward ratio comes few times in a year, and you should trade infrequently.
4- Raise stoploss time to time: Check the price if its moved forward in the signals direction move your stoploss forward too and If you decide to trade on our signals you can often achieve better results if you try to bring your stop loss order at your entry price level when you are up ± 25-30 pips in the trade. That way, you will be winner.
5- Risk and Money management is a general rule of thumb in forex trading that always try to preserve your capital. So, given a chance, raise your stop protection to your breakeven point as soon as possible. Must calculate risks in Forex trading and Drawdowns are also part of trading so enjoy it; it’s volatile markets that make FOREX trading fun and highly profitable.
6- Position Management: If you can manage your opened positions, you may possibly get better results on average than what we post as real trading results on our website. Do not let your winning trade turn into a loosing trade. Our posted results take only into consideration the entry price (bid and ask depending on the direction that the market will take) and the exit price few hours later (of course we assume that stops or limits still not hit during the day). Very often you can increase your profits (or decrease losses) if you closely monitor your trading positions at regular intervals during the trade time.
7- Keep your leverage in line with your account size. For trading accounts of $5 000-$10 000, never risk more than 7% of your account at any time (i.e. you can only trade 4 to 8 mini-lots per currency recommendation). For accounts of $10 000-$20 000, never risk more than 6% or 1 standard lot per recommendation. For accounts of $20 000-$50 000, never risk more than 5% or 2 standard lots per recommendation. And for accounts of $50 000 and up, never risk more than 4% or 3 standard lots per recommendation.
8- Always Diversify in Forex market: Diversification is an accepted wisdom, believed by most investors in Forex trading, if you want to be winner diversify in different pairs.
For more information and rules please see the 10fxrules in other section of our website.
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