In order to be a consistent and winning trader, learn to trust your trading system. Take each entry signal, adjust your stop and close out each trade exactly the way your trading plan is laid out. Follow your trading rules for entering, adding to, and getting out of your positions
Forex trading tip #2 Let the profits run.
Fear and greed is the trademark of losing traders. So this is a delicate balance. You must realize forex trades are a long string of small winners and losers promptly followed by large winners. It’s the difference between profit and loss. The key to a profit run is to have trailing stops that ignore the daily noise in the market and are not so tight as to get stopped out.
Forex trading tip #3 Cut the losses short.
Preserve your capital by avoiding the large losers. Set a maximum loss limit before you enter the trade. Don’t hope for a sudden around when you have a losing position right at your limit. Pay attention to your exit signals and get out.
Forex trading tip #4 Never throw money at a losing trade.
There are winners and there are losers. Fear of loss may entice some traders to risk money unnecessarily. When you take this risk, you’ll discover the trade ultimately hits your stop loss without changing direction almost every time. Once in a while the trade turns around before it hits your stop and becomes a winner. Consider yourself most fortunate when it occurs.
Forex trading tip #5 Limit your risk.
One the biggest blunders any forex trader can make is putting too much capital at risk on a single trade. Avoid wipe outs by not risking a major portion of your account with excessive leverage. No more than 1-3% of available capital should be at risk on any individual trade.
Forex trading tip #6 Continue to learn and test, test, test.
In order to keep the competitive edge and be a player in the forex trading business, you have to be well educated. Research and test a variety of trading systems (demo account) and track which trading system performs best and continues to work consistently.
Understand the technology and applications your system requires to perform with accuracy. Outline your goals and how trading forex will help you achieve them.
In order to succeed as a forex trader, you really need to become an expert in your own trading system and how it can be improved. Success takes commitment, hard work, dedication, and more hard work.
Forex trading tip #7 Scared money can’t win.
No one ever made any money trading forex when they had none to lose.
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