Here are a few tactics to get you started. Entire books have been written about most of these subjects, no joke. Hopefully this post will get you thinking in the right direction. I'll try to get into more detail on each subject in the coming weeks. Make sure to check back frequently - we are adding additional information and new Forex strategy trading tips on a regular basis.
Become a Smart Trader
I can’t overstate the significance of educating yourself about the markets. There are literally countless different books on markets, methods, basically everything you will need to know to get going in the Currency markets. Not sure how to begin? I recommend Trading for a Living by Dr. Alexander Elder, as well as The Disciplined Trader by Mark Douglas. We'll also do our best to keep up to date and relevant information available here, at your fingertips, ready for you to use.
Become a Student, Always
Just like you wouldn't commit to buy a car without a test drive - doesn’t start putting your hard earned dollars out there without taking some time to study the ins and outs of the markets. Spend some time to study the markets, different strategies, and study the intricacies of trading before risking real capital. Trust me, if you don't - you are going to have a really, really bad day.
Practically all brokers offer some sort of demo account that will enable you to practice just like it was a real account. Practice, practice, and practice a lot more. Not only are you going to acquire a feel for the markets, but you will also get a feel for the trading platform of that broker, and how to quickly and accurately navigate it. Use these practice accounts as long as you need as a way to gain confidence prior to deciding to put your hard earned money at risk.
Know your limit
Like the saying goes - it's not possible to have champagne on a beer budget. You need to create a risk to reward ratio that fits your financial situation. Know your limits, and how much you are willing to risk on each trade. Never risk more than you can afford to lose. And never, ever go "all in". You will lose a few of the battles, but you'll live to fight another day.
Plan your trade and trade your plan
How can you get to your destination if you veer from your path? Make a plan to guide your trading. It should incorporate your profit goals, risk-tolerance level, methodology, and evaluation criteria. Once you have a plan in place, make sure that each trade you consider falls within your plan’s parameters because you’re most rational prior to placing your trade and most irrational once your trade is live.
And don't forget, although consistency is important; don’t be scared to re-evaluate your forex strategy trading plan if it’s not working for you. As your experience grows, your expectations may change. Your plan should be a representation of your goals. If your goals or financial circumstances changes, so should your plan.I'll be back soon with the more trading tips.
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