By Sequoia on 06/14/2010 – 4:45 am PDT
In order to achieve Forex success, there are a number of things that you will need to do. Here are some of the best tips for achieving Forex success.
1. Choose a Strategy
Whenever you get involved in the Forex market, you need to make sure that you choose a trading strategy and stick with it. Many people go from one strategy to the next without giving the first strategy a chance to work. They try a trading method one or two times and if it does not bring them profit, they simply abandon it. With the Forex market you have to be patient and allow a strategy to prove itself before you can make any judgments. Most of the time, you should plan on trying a strategy for at least a month before you can make any judgments as to whether it works. After you have become proficient with one strategy, you can learn another. However, you do not need to try to learn many strategies at once. Becoming an expert in one strategy is going to be more beneficial to you than dabbling in many.
2. Demo Accounts
Whenever you start working with a strategy, you need to test it out in a demo account before you go to a live account. With a demo account, you will be able to gain real-time access to the Forex market. This means that you will be able to trade a strategy exactly as you would be able to in a live account. Using a demo account will allow you to become proficient in this strategy before you start risking your own money. You need to prove to yourself that you can make money with a strategy before you go live. If you cannot make money in a demo account, there is no way that you will be able to make money with a live account.
3. Money Management
Every successful Forex trader realizes the importance of sound money management techniques. Regardless of the strategy, if you do not employ money management you are going to end up losing money. You need to determine exactly how much you are willing to risk on each trade. Most experts recommend that you should only risk between 1 to 3 percent, on each trade. Calculate the proper lot size for your trade and then use stop loss orders to limit the amount of money that you can lose. Use your money management strategy with every trade that you place.
4. Patience
Whenever you are trading the market, you need to continually be patient. Many people get impatient and they start taking bad trades. The object of the game is not to place as many trades as you can. Instead, you are trying to make as much money as you can. Therefore, you need to stick to the rules of your trading system and avoid taking bad trades.
From favstocks.com published on 06/14/2010 – 4:45 am PDT