Forex Tip Trading Secrets

All of our Forex tip trading secrets can help take you from where you are to where you want to be in the foreign exchange market. When you're a rookie, trading the market can be extremely intimidating. With these basic Forex tips, you can keep things simple.

When you start to struggle or get overwhelmed, just remember the tips and keep moving ahead. Here are the top pointers to keep in mind when trading the market.

1. Educate Yourself

Before you ever put the rubber to the road (or in this case, finger to the mouse button) you will need to educate yourself thoroughly. This can be done by reading books, watching videos, attending seminars and of course...reading this site. You could theoretically jump right in and trade the first day if you want. That doesn't necessarily make it a good idea. You could teach yourself to skydive too, but you'd probably only get one lesson.

forex tip trading

Tap the brakes a bit and slow down your urge to make millions of dollars a day in the Forex market. Educate yourself and try to become knowledgeable about the market first. Read some of the great Forex tip trading resources and take it easy.

2. Find a Good System

A Forex trader is really only as good as the system he uses. This is not one of those scenarios where you can blindly open a trade and hope to win it big. You have to use a tried and true system every day. You can pull some of the popular systems out of Forex books or you could buy a commercial system. Regardless of where you get your system from, you need to make sure it works.

Read some reviews (like the ones here at Forex Trading Rookie) and see what other traders have to say. You should be able to get a general feel for what others think about a system before you use it. Look for Forex tip trading advice on each system before implementing it.

3. Trade Monopoly Money

Don't really trade Monopoly money, but you get the idea, right? Open a demo Forex account at one of the many brokers out there in the market. You can choose the amount of fake money that you want to trade with and then have it put right in your account. You could open an account with $100,000 if you want! Of course, you probably won't open your first real account with that much, so it might make sense to go with a more realistic number like $1,000 or $3,000 to start with. If you blow out your account, you just open another one with more fake money. This is so much better than trying real money and then having to explain to your spouse why you just lost the kid's college fund...and the house.

4. Manage That Cash

Regardless of whether you are trading with a demo or live account, you need to practice sound money management principles. You need to manage that money like an anal-retentive accountant on 12 cups of cappuchino. Set up some rules that you will live and die by with each trade.

For instance, you might say that you're only going to risk 1% of your account balance on any given trade. Once you find a trading opportunity, you set the stop loss so that you can only lose a maximum of 1% no matter what happens. It's very easy to get out of this habit and start making up your lot sizes and stop losses as you go. Try to avoid this temptation. No wait...avoid the temptation! (In the words of a wise, green Jedi) Do or do not...there is no try.

5. Keep on Keepin' On

Many traders start to do well and they get all pumped up. "I'm quitting my job tomorrow! I'm going to retire in six months!" Then they suffer a loss.

"This sucks. This is such a scam. I can't believe I paid $97 for this crap trading system."

It's easy to get excited when you win and down right angry when you lose. If you're going to be successful in this game, you have to figure out a way to stay motivated and focused every day. When you're playing with large sums of money, you really can't afford to take a day off from your focus. Read motivational quotes or books. Focus on your goals and avoid thinking about what could happen if you lose again. Eventually, you'll get into a groove and start to get used to the daily grind. At that point, you need to keep motivating yourself.

Putting it All Together

Keep these Forex tip trading secrets in mind when you start trading. Use this site and the resources available to you to become a more complete trader. Eventually you'll get to the point where you can be successful and make some real money on a consistent.

Return From Forex Tip Trading to Definition of Foreign Exchange

Return From Forex Tip Trading to Forex Trading

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