Don't be too greedy

Don't be too greedy, but don't play it too safe either. On the one hand, you shouldn't be overly ambitious with your profit objectives. You must always stay realistic if you don't want to lose it all. But on the other hand, you can't be too cautious otherwise your profits won't be worthwhile. Give your position a good chance to make a fair profit by using sensible stop-loss and take-profit levels. Learning how to strike a balance between those two opposite tendencies will help boost your profit.

Know when to trade forex

Know when to trade forex. This is one of those forex trading tips that are really worthwhile. Knowing a little bit more about forex trading hours -what times of the day and week provide the best forex trading opportunities - will definitely save you some insignificant trades. Although forex trading is available 'round the clock, this doesn't mean that each hour provides equal opportunities. Sometimes, it's better to abstain from trading than to trade and lose. With Finotec, you will learn when are the best times to trade and when it is best to open a position - neither too early nor too late.

Follow the trend.

Follow the trend. Does "the trend is your friend" sound familiar? This is one of the most popular and useful forex tips. And it seems to be working! Unless you expect a trend reversal, go with the trend. You can use long-term moving averages to determine such trend reversals. So follow the trend, but not blindly!

Abide by your strategy

Abide by your strategy. This forex trading tip implied another one: you must have a strategy! Before you start trading forex, you should know exactly what your trading plan is. Set yourself a limit amount and eventually a limit date, and an exit strategy. You must know what to do if the market moves in your favor, but you must also know what to do if it moves against you. Do not leave anything to chance. You should analyze every possible scenario to minimize your risk and not be caught by surprise. Be consistent with your strategy, you have all the tools you can think of to carefully plan your forex trading strategies.

Know when to exit a trade

Know when to exit a trade. If you had to choose which forex trading tips you should remember, this one would probably be at the top of the list. Indeed, whether you are winning or losing, you must know when to let go. Don't maintain a losing position in the hope of a trend reversal. This kind of hope-based strategy may lead to greater losses. As for winning trades, although you should let profits grow, you should also know when to close your position to avoid trend reversals.

Keep a Level Head

It's not a good idea to get too cocky about success you've been experiencing in the market. Almost all traders experience a failure at some point. Try to stay level headed and learn from the market and from the moves you are making. Keep building on your knowledge and be aware of any unsavory patterns. There is always something to learn and a little modesty can go a long way.

Choosing a Broker

Make sure to do your research when choosing your Forex broker. Many brokers are more concerned with making money from your money then making you money. Read the blogs, join the forums, ask around and then choose wisely.

One Cross at a Time

You should concentrate on one cross at a time. If EURUSD is working for you then stay with it, don't get distracted by the activity of GBPUSD. Stay focused and consistent.

Identifying a Good Move

You want to buy when there is a spike in the currency cross. It is probably best to buy at the first hint of the market being overwrought and then immediately sell when the market becomes oversold. This method will allow you to effectively recognize a constructive move and also give you time to see it through.

Crossing Short-Term and Long-Term Moving Averages

At the moment when the short-term and long-term moving averages cross their prices become equal. Many non professional traders fall prey to this scenario and it is one to look out for and avoid.

Stick With Your Trade

Once a trade has been made you need to stick with it and let it run its course. If your trade has nearly reached its stop-loss, let it. Never change your stop half way through the life of your trade. This will only cause greater grief and loss. And remember if a trade is not working for you get out and don't look back just keep moving forward.

Peace of Mind Trading

Staying detached from trades you place will help you keep a level head and make clear, smart decisions. Leaving all emotion behind will prevent unnecessary losses from occurring. It's best to trade within increments of a few hours at a time. And always remember that once a trade is made it is out of your control. This should bring you peace of mind and a cool collective outlook on trading.

Trade for the Right Reason

There are two times a trade should never be made: on an impulse or because you have nothing better to do. When you want to trade make sure there is a trade to be made. Don't throw away good money because you need the rush of the trade.

Follow the Market

Listen to the market and see how it's moving and then follow its lead. A 20 point stop with a 50 point profit has the odds against you 1-4. Don't make a trade that is sure to turn the market against you, watch, listen and then trade.

Currency Pairs

Every currency pairing is exceptional and has a significant way of moving in the market. No one currency cross is a-like so in order to be a successful trader you must study each cross individually and learn its patterns.

The Black Box

The "black box" is a trading signal system. It might be a good move to stay away from any simulated result systems. They don't fully explain how they are made and usually only show their past history of positive predictions. These complex systems use high speed algorithmic proficiencies so they can offer a revised trading system and this can lead you to make a bad trade.

Bottom Line

Your account balance is not the bottom line to your trading history. You need to look past the overall account balance and consider your trade details; examine any diminished returns and determine any bad patterns so you can correct them. The bottom line is to maintain a strong long term place in the market you need to minimize your daily losses.

Day Trading

When you’re a day trader you need to know what is happening in the moment. You are making decisions based on the news of the day. Long term trading trends are not of much use to an intraday trader. If you are looking to trade 40 – 60 points you need to concentrate on what the market is doing on the day of your trade.

Never Stray from you Blueprint

Remember that in order to become a successful trader you need to have a well thought out blueprint. Do not at any time abandon your plans. Invest your money in your long term trading goals and stick with it.

Demo Trading

Demo trading is trying out trading with fake money. This can cause a new trader to cultivate poor patterns and in turn make bad trades. When you start out, learn your broker's methodology and only trade in small amounts and never invest more then you can afford to loose.

Concentrate

Hone in on your present status in the market and don't loose focus of your goals. Don't spend money you don't have yet and always establish practical stop-losses on your trades. Now it's time to watch the market do its thing and remember you don't have any control but you can still enjoy a good profit.

Accepting Loss

It is never a smart move to stick with a loosing trade. You need to leave the ego behind and accept the loss and move on. Never get stuck on a trade, the market is too unpredictable for decisions like that. Take your losses, learn from them, let them go and start a new day with a new trade.

Self Assurance

It is important to keep your self assurance up when trading or you might run the risk of being put off by trading and not confident enough to continue. Therefore it is critical that you learn the tools of the trade and learn them well.

Leave Your Emotions Behind

Trading with your emotions is possibly the worst way to trade. We don't generally make the best decisions when we are too emotional and that is why emotions have no place in trading. To be a successful trader you must leave your emotions at the door.

Where is the Market Today

Knowing how the market is behaving is primary in having a successful trade. Pay attention to whether the market is over-extended, long or short and in what direction it's moving.

Bargain Trading

You must remember there are no "bargains" in Forex Trading. Always follow the currency and which way it is moving and you will never fail to make a profit.

Trade Simple

The best traders are those that kept it simple. Don't over think or over analyze. If you do this you are sure to be happy with the results.

Short-term Trading

Supposing you have the intention of only trading up to 20 points, in this instance its better not to make the trade at all. Your chances of making any profit are not in your favor.

Trade Departure

There is not an exact science or a sure thing in Forex trading. There may be times that a trade you acquired is not on track with you. If this happens the best thing you can do is leave it and move on. If you are on a good streak with a trade but find yourself wanting out due to boredom or stress it is best to keep with it and learn to handle the stress.

News Trading

The best time for trading is when the news is broadcast. The daily news has a huge influence on the Forex Market. Once a news item is released the heavy trading traffic begins resulting in an abundant flow of currency.

The Moving Market

The market has only two directions to go in; up or down. There is no way of determining or controlling how the market will move. So always keep a level head and go with the flow. You can spend endless hours studying the market trends but they will never give you a clear picture into the future.

Off-Peak Trading

The online Forex Market is open 24 hours a day 5 days a week, the off-peak hours for the market are between 22:00 CET and 10:00 CET. You are probably better off not trading during the off-peak hours. This is when the expert Forex traders, hedge fund and option traders have leverage over the retail traders and can gain a better stand in the market.

Blueprint

Having a blueprint of how you intend to make money from Forex trading is crucial to being a successful trader. It is important to plan in advance your course of action, the type of currencies you intend to trade and how to handle your liabilities. Don't end up amongst the 90% of new traders that go bust. Make a plan.

Margin Trading

Margin trading can be a huge advantage to Forex trading, but it can also be quite hazardous for the inexperienced trader. Foreign exchange is traded on a margin, which allows you to trade a much higher amount then you have deposited. The best advice is to be disciplined and cultivate your trading knowledge before making any big moves.

Self-Reliant

In Forex trading you can choose two paths, trade through a Forex broker or trade on your own. Whichever you choose, remember these two key facets:

• Try not to intervene too much with your Broker's strategy. Be patient and trust that they will bring you a great profit. There is a method to what they are doing.
  
• If you are making your own trades have confidence in the decisions you are making. Stay away from seeking the advice of others. Decide how you want to trade and see it through.

Reserved Trading

It is unwise to place a strict stop-loss order with any broker. This will only end badly. Remember you need to allow your trade to be nurtured and flourish. Profits cannot be made if you keep the belt straps too tight. Place a reasonable stop-loss on all trades to be sure not to weaken your standing and to guarantee a profit and not a loss.

Trading Low

It's smarter to make a larger order when you're trading. This method will nurture your long term profits. Limited trades might seem like the safest way to go and they will make you a small profit in the short term. It is essential to remember that you must still recover the bid and asking price prior to obtaining any profits and with small trades in the short term this can be very difficult.

The Importance of Being Earnest

The first rule of thumb to Forex trading online is to gain a strong understanding of the market basics. Forex trading is available 24 hours a day, 5 days a week. This gives you the ability to react to any breaking news at any point of the day or night. Helping you take advantage of the trading market and in turn make you a greater profit. The Forex market is best when it is active and there is a lot of movement.

Two Sides to the Coin

In currency trading you are dealing with two currencies simultaneously. Therefore to succeed in Forex trading you must know how both currencies are behaving in the market.