Forex Tips

Category: Forex Trading

Capital Investor’s Forex Trading Tips

Capital Investor Forex Trading Tips

Here are some simple but important trading tips for Forex Beginners:

Forex Tip 1) Choose one Trading Strategy and Stick to it

When trading Forex or any other market it is better to focus and get specialized in just one trading strategy and not in many. Many strategies will get you confused. Keep in mind that all strategies have losing periods, so don’t get disappointed easily. Stick to a strategy that you believe in and try to figure out when the profitable period begins and when it ends.

Forex Tip 2) Choose the Right Broker

Choosing the right Forex broker is very crucial when trading currencies. You must choose a Forex Broker according your trading profile. For example if you are a novice trader you must choose a Broker with a practice account, offering low spreads and commissions and an easy-2-use platform. If you are a pro you need an ECN Forex Broker offering many pairs and a MetaTrader platform.

In our partner site OnlineForex.biz there are a number of comparisons regarding the Forex Market and brokers:

Forex Tip 3) Prefer Focusing only on a couple of Forex Pairs and not on many

We are living in the age of specialization, and a successful capital investor should always adapt to its environment. By focusing only to a currency pair you will be able to monitor easily your trade and analyzing macroeconomic data and news deriving from only two economies and not many.

Forex Tip 4) Don’t get Emotional with your Trades

If a person is too emotional in general with other people is not a bad thing, but if he is also emotional in fields like investing and trading markets, it can prove catastrophic for him. Capital investing is all about numbers and facts, and only those investors who can make clear decisions and follow them with discipline can benefit from market fluctuations. Emotions is a substitute of logic, and logic is the basic ingredient when trading the capital markets.

Forex Tip 5) Make a Track Record of your Trades

Keep a clear and honest track of your trades is one of the most important factors that will determine if you will make money or not in the long-run. By keeping a track you will be able to evaluate trading strategies, indicators and signal providers. Furthermore, a track record will provide you with the chance to evaluate your periodical performance and thus avoid time periods when loosing will prove very probable.

Forex Tip 6) Choose your Leverage Ratio Wise and don’t get greedy

Greed is one of the worst characteristics of the human kind. Investors and traders who are greed are afraid to leave money on the table and so they don’t usually make the correct decisions. Wise traders take a logical profit and wait for the next trade to occur.

Forex Tip 7) Use always a Stop-Loss Strategy and don’t Change it

Stop-loss orders is one of the key factors that can easily differentiate novice and pro traders. Determine always a stop-loss price as you determine a target price. Only use trail stops if your trade is strong into profit. That means that if your trade profit is far above risk (1.5 times or more).