Never invest money in a real Forex account before you practice on a Forex Demo account!
- Spend at least two month practicing with demo trading. Think about this: 90 percent of beginners are unable to succeed in the real money market simply due to lack of experience, knowledge and discipline. The remaining 10 percent of successful traders had been developing and forming their skills on demo accounts for years before starting their work on the real market.
Go with the trend!
- Bear in mind that trend is your friend. Trade with the trend in order to maximize your chances of success. Trading against the trend will not “kill” a trader, but will surely demand more attention, nerves and sharp skills to reach the trading goals you’ve set.
Always pay attention to the time frame wider than the one you’ve chosen to trade in.
- It gives the bigger picture of market price movements and, as a result, allows to clearly define the trend. For instance, when trading in 15 minute time frame, examine the 1 hour chart; trading hourly would require getting a picture of daily and weekly price movements.
Never risk more than 2-3 percent of the total trading account.
- One significant difference between a successful and an unsuccessful trader is that the former is skilled enough in order to survive in unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5 or 10 unprofitable trades in the row.
Put emotions aside. Trade calmly.
- Do not try to take vengeance after losing the trade. Don’t be greedy by adding lots of positions when winning. Overreaction blocks your ability to think clearly and in consequence will cost you some money. Overtrading can disrupt your money management and drastically increase trading risks.