Tips n Strategies for Forex Trading

1. Avoid the "Get Rich Quick" Mentality.
Forex newbies are often mislead by the idea that Forex trading is an easy way to make a lot of money in a little bit of time. Often, they do not recognize the potential for loss, nor do they understand the efforts of an experienced trader. Trading at larger volumes may often prove unsuccessful in terms of gaining more profit and should be approached with skill and strategy.

 
2. Develop a Strategy Before Trading.
When entering any market, traders often develop strategies to guide them in the opening and closing of positions. Establishing a concrete and developmental strategy before trading allows traders to maintain focus. Determining a strategy ahead of time helps traders to concentrate on their trading method and eliminate doubt. Traders should realize that the market does not always complement individual orders.

3. Set a Stop Loss or Found The Solution.
Many new traders hold on to losing positions far too long thinking, or hoping, in some cases that the market will turn around. They also tend to get out of winning positions far too quickly to lock in an immediate profit which eliminates the chance for greater gains. Although it is tempting to have this mind frame, you must have the patience to enter only those trades which you think are opportunistic and follow this up with the discipline to either cut this trade quickly if it turns against you or run with it because you believe in the trade. Please be advised that the placing of certain orders (e.g., "stop-loss" orders, where permitted under local law, or "stop-limit" orders), which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders.

4. Do Not Trade Based on Emotion.
It is important to remain rational when trading. Letting emotions take control of trading can result in a loss of concentration and careless decision making, which may prove to be unprofitable. Keep in mind that the market is not against you personally. Remember what you have learned, stick to your strategy and evaluate each situation with a confident state of mind.

5. Never Invest Money Into a Real Forex Account Until You Practice On a Forex Demo Account.
Disciplined traders who stick with a tested trading plan consistently will, more often than not, profit over those who trade inconsistently because constant second-guessing ruins the profitability and eliminates the benefits of having a trading plan in the first place. It is crucial that you plan your trades and trade your plan rather than randomly picking out trades on a whim because the latter is no more than punting with only the hope of winning as opposed to having an edge in the markets through the use of a solid, consistent trading system. It's important to maintain consistency with your trading system and follow it up with good analysis of your own processes in order to have a better gauge of where you are going wrong.

6. Choose The Time Frame That is Right for You.
Choose a frame which you are comfortable with and have enough time to analyze the market and open/close orders. Some people cannot wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 15-30 minutes can prove to be difficult.

7. Always Take a Look at The Time Frame Bigger Than the One You’ve Chosen to Trade In.
It gives the bigger picture of market price movement and so helps to clearly define the trend. For example, when trading in a 15 minute time frame, take a look at a 1 hour chart; trading hourly would require a picture of daily, weekly price movements.

8. Never Risk More Than 2-3% of The Total Trading Account.
One important difference between successful and unsuccessful traders is that the first is able to survive under unfavorable conditions in the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in a row. Don’t try to revenge after losing the trade. Don’t be greedy by adding lots of positions when winning. Overreaction blocks clear thinking and as a result, will cost you money. Over trading can shake your money management and dramatically increase trading risks.

9. Try Using an Expert Advisor on a Demo Account.
Make sure you back test the EA on a demo platform before going live with any Advisor.

10. Good Luck !!!