4 Hot Tips That Will Kick Your Forex Trading Career

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Guest post from Jason Madison of beatwallstreetnow.com

1. Develop a trading plan and stick to it.

Trading is just like any other business if you don’t have plan of action you are destined to fail. A trading plan is a necessity because without one you are just gambling. A good trading plan will have defined rules that tell you: when to take a trade, how much to risk, and when to exit a trade. It is important that you develop a trading plan and adhere to its rules if you hope to be a successful trader.

2. Learn To Accept Losses.

Losing is a part of trading and you will never escape it. As human beings we seek perfection we want to believe that if we can just find the right method we can trade the markets flawlessly and never take a loss. Unfortunately that is not the case as even the best traders in the world take losses it’s a part of the game. The key however is to not fear these losses but to simply expect them to occur and to manage your risk accordingly

3. Use Proper Money Management.

The key to lasting in the world of forex trading is to control your risk. You have resist the temptation trade to maximize gains and to instead trade to minimize loss. You have to treat your capital as you would a loved one. You wouldn’t risk a family member’s life would you? So don’t risk your capital unnecessarily because your capital is the life line of your trading career. Keep your maximum risk to between 2-3% per trade and you will ensure that even if you suffer a string of losses you will live to trade another day

4. Don’t Be Greedy

When you open a trade and the market does exactly what you thought it would do you are going to be tempted to hold on to the trade because you figure its going to keep moving in the same direction making you more money. This however could backfire as the market could quickly reverse and wipe away all your gains. To avoid this you need to take profit once the market has given you a certain amount of profit. This amount should be defined in your trading plan and should be strictly adhered to.

Forex Trading may seem like an impossible thing to learn but with these tips you will be well on your way to a successful forex trading career.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

1 Comment

  1. Robert Australian Forex Trading Mentor on

    5th? Seems too often that people dont mention the word MENTOR? Why is it that everyone who goes into FX wants to go the road themselves and never seeks to get training from a real human being thats been there and done that? is it ego? is it a need to curl up in a cave and read a technical analysis book or is it a need to rush off a hand over $3,000 for a 2 day course for example that could be gained from a $25 book. Ongoing training and mentorship is critical to long term survival. You cant learn some of what the market dishes out in a book, you cant get a good feel for the market trading a demo.. you can get someone sitting “virtually” beside you and guiding through strategies from entry to exit. There are many so called FX coaches on the market .. some I have seen have used completely crazy trading methods including scalping for 5 pips with a 100 pip stop loss. That comment was also designed as a word of caution if you think your going to rush out and get a mentor.. caution is the word.