Forex Trading tips, Forex advice and tricks

The Forex market is among the most profitable in the world, and is worth more than a trillion and a half dollars a day!There are thousands of successful Forex traders making money trading foreign currency, but did you know that 90% of new traders lose money doing this? In order to be successful, there are a few things you absolutely must know. The following are some of the more important forex trading tips to understand if you plan earn money trading currency.

Tip 1.Trading Forex it's not Gambling

You must be aware that trading currency it's not gambling and any attempt to trade without analysis and studying the market could end extremely bad for your account balance.

Tip 2.Don't open a real account until you had practiced on a forex Demo account.

Don't forget that about 90% of beginners fail to succeed in the real money market due to lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.So you should allow a couple of months for demo trading and participate to some forex contests.

Tip 3. Trade pairs, not currencies

Like any relationship, you have to know both sides. Success or failure in forex trading depends upon being right about both currencies and how they impact one another, not just one.

Tip 4. "Trend is your friend"

If you identified a certain trand you shoul trade with the trend to maximize your chances to succeed. Trading against the trend could make you lose some money and will definitely require more attention, nerves and sharp skills to rich trading goals.So if the trend is UP you should be on a long position (buy) and if the trend is down you should be on a short position(sell).

Tip 5. Never risk more that 3% of your trading account

This tip it's a money management thing.The important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable market conditions, while an unsuccessful trader will lose his account after 10-20 unprofitable trades in a row. Even with the same trading system 2 traders can get opposite results in the long run.Think about this :losing only 50% of your account balance requires making 100% return only to restore the original balance.

Tip 6. Trade calm

You should try to put your emotions dows.Don't try to revenge after losing a trade.Don't let the fear or greed to dominate you! Don't be greedy by adding lots of positions when winning and also don't panic and sell to early when your position turns red.

Tip 7. Learn to use protective stops.

Respect your stops and don't move them, by moving a stop loss further a trader increases his chances to end up with a much bigger loss.

Tip 8. Choose the right day to trade.

This recomendation is often wrongly taken as an optional thing, because everyone knows that Forex market is open 24 hours a day 7 days a week. Yet, choosing the time to trade can make a difference between successful and hopeless trading.

It's proved and highly recommended not to trade on Mondays, when the market has recently awaken and is making first "probation steps" to form a new or confirm a current trend; and on Fridays afternoon, during the huge volume of closing trades. The best days to trade are Tuesdays, Wednesdays and Thursdays.

Tip 9. Think about risk/reward ratio before entering each trade.

How much money can you lose in this trade? How much can you gain? Now, make a decision if the trade is worth entering.

Tip 10. Continuous learning

Take the time to develop a solid trading system and find out that the secret to trading success lies in hard work and constant learning.

You can never have too many tips when you are trading, so we will add more tips and advices in the near future so you can improve your trading and avoid unwanted loses.

GOOD LUCK!

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Special thanks to freeforextips.net