Forex Trading Tips

Whether they are new or seasoned traders, people always want forex trading tips. When they ask me, I always ask if they mean like the tips they get on horses at the races! If that's what they mean by forex trading tips, they've come to the wrong place. I can't predict which horse will win the first race, and I can't predict exactly which of your forex trade will be winners.

What I can do, though, is provide you with a few simple forex trading tips to help keep you focused on the things that matter if you want to make money trading foreign currencies. So here we go, here are my seven best forex trading tips:

1. Trade, don't gamble. Trading is based on research and knowledge, whether yours or a trusted advisor's. Trading without knowledge or on "hunches" is gambling, plain and simple. Gamble on the horses, not with your forex account.

2. Practice with "play money" before you risk any real cash. Fortunately, in forex trading that's easy, because brokers allow you what they call a demo account. With a demo account you can trade as if it were real, making and losing money just as n the real forex world. The difference is, no money actually enters into the picture, which means you can make all the mistakes you need to in order to learn. My advice to newbies: trade on a demo account for at least three months before you go live with real money. Not only that, but analyze your demo wins and losses carefully, learn from your mistakes so that you won't repeat them with real cash.

3. Trade in the time frame that suits your temperament and experience level. Many people trade in short time frames such as 15 minutes because they love the excitement that comes from making their moves just at the right moment to catch the price before it moves. But that's not for everybody, and particularly novice forex traders are well advised to look at longer time frames that provide more opportunity for analysis before making trading decisions.

4. As a beginner, go with the trend. Once you get some experience under your belt, you might decide to play the odd trade against the trend and you might even win. But don't take any chances this way until you are really experienced --- and maybe not even then.

5. Look at time frames that are longer than the ones you are planning to trade in. This gives you a bigger picture and gives you a better chance to see and accurately identify trends. For example, if you are trading in an hourly time frame, you want to look at daily and weekly price movements for a more realistic picture. The forex market is subject to occasional blips that can trip you up if you're not ready for them. But if you are keeping an eye on a longer time frame, you are more likely to see them coming, and know whether they are truly trend related or just a market anomaly.

6. Use sound money management principles. In forex trading, that means never risking more than a small percentage of your total trading account, such as 2-3%. Understand that you WILL lose on many trades, that's just the nature of forex trading. Each time you lose, you need to make twice that much on the next trade just to stay even! Keep your risk low so that a few losses in a row won't wipe out your account.

7. Get your emotions out of the picture. Trading forex on the basis of emotion has brought many a novice trader down. Use all the tools available to you for technical and/or fundamental analysis and make your trading decisions based on the results. Never trade on a hunch (see tip #1).

The world of forex is an exciting one, no doubt about it. There's much to learn, and you should keep learning as long as you are trading --- the resources I recommend on this site are invaluable and can help you be successful in foreign currency trading over the long term.

But if you follow these seven simple forex trading tips, you won't go far wrong.

Get Your Free 7-part Mini-Course Now!

Over the next 7 days, you can find out what you need to know to prepare you for the wild and wacky world of forex trading!

Here's what you'll learn from my free mini-course:

7 essential principles you must understand before you even dip your toe in the forex waters.
1 important item your broker gives you --- get this wrong and you open yourself up to hidden costs that can drain your trading profits.
The single factor that makes your potential forex trading profits so huge --- and why it's a double-edged sword.
How to give your broker (or your robot) the exact instructions for each trade. Get this right and you can sleep easy, but if you get it wrong --- you may not be in the forex market for long!
Surprising facts about what causes the movement in currency prices --- those movements that make money for us forex traders!
The one skill that will stop you from trading on emotion --- because that way lies disaster.
2 secrets you must know about automatic trading with forex robots. Ignore these at your peril, but respect them and you can explode your forex profits.

Whether you are completely new to forex or whether you have already dabbled in the market, this course will help you. sign up now and get your first lesson in just a few minutes!

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