Additional Tips
You can never have too many tips when you are trading Forex!
Tip A: Trading strategies that work well in a bullish market may not work in a bearish market.
The same is true for systems that work well in a good trending market but may not be usable at all to a ranging market. The solution is to have a system for each type of
market or make sure that one solid system will work well under all market conditions - an extensive testing should be the way to know the truth.
Tip B: Do not try to pick price tops and bottoms.
It is a wrong method that many traders have adopted. Searching for bargains is a good thing when you go shopping, but
you will get problems if you applied it to Forex trading. So detect the trend and join it.
Tip C: Always remind yourself that the first and the last market bars/ticks are the most expensive ones.
You should enter the market on the first ticks and be out of the market early. On the open, never trade in the direction of a gap.
Tip D. Do not worry about missing out a trading opportunity.
Do not take a trade that does not meet all entry rules. Trades are never running dry, so bear up and stick to your rules and trading plan.
Tip E: By using knowledge about currency correlation in Forex you can easily avoid opening positions
that cancel each other
(for example +15 pips on one pair and -15 on another = 0). You should find out which currency pairs move simultaneously and which ones in opposite direction.
Tip F: Do you have your stop loss order in place?
Even if your trading system needs no stops, you should have it. It is not because you are going to use it, but just for the safety of your capital. A sudden huge move in
the Forex market could cost you a big amount of your trading account especially if a margin call is triggered.
We are using insurances for many things in our life, why do not have one for your trading account? For trading systems without a stop loss order you should put one on a decent distance, for example 100 pips. And do not use too tight stop orders as they will most likely be hit more often then you need to.
Tip G: Spend less time trading Forex but make it quality time.
You should only trade when you can be 100% focused on trading. The time which you spent in front of the monitor does not assume profitability, so do not fool yourself and do
not trade half-ready.
Tip H: You should not trade with money that you can not allow to lose.
That is the problem why traders who are switching from Demo to real account often may find themselves losing a trade after trade with a system that used to be profitable. The
reason is because with a real account they are scared to lose money, while on the Demo account their minds were free.
Do not trade if you can not afford to lose your money. Besides, do not trade if you must make a special amount of money per month to pay your bills in order to avoid financial trouble. Trading in a scared condition is the best way to forget all trading rules, discipline and get additional stress.
We wish you to achieve a smart trading!
Risk Disclosure: FX Trading Online will not accept any liability for loss or damage as a result of reliance on the information contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets. Currency trading on margin involves high risk and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.