Successful Forex Traders Tips
1. Before you start to tradeing forex – recognize the value of proper preparation. The first step is to align your personal goals and temperament with the instruments and markets that you can comfortably relate to. For example, if you know something about retailing, then look to trade retail stocks rather than oil futures, about which you may know nothing. Begin by assessing the following three components.
2.Develop a ‘feel’ for the chart - You’ve got to first develop a feel for a chart by developing your bias for that chart. Once you’ve done this, you stick with that bias until it stops working.
3. Stick to your plan - Once you know what you want from trading, you must systematically define a timeframe and a working plan for your forex trading career. What constitutes failure, what would be defined as success? What is the timeframe for the trial and error process that will inevitably be an important part of your learning.
4. Do not add to a losing position - There are lots of educated guesses, but no knowledge of where the price will be a short while later , the only certain value about trading is now, if you are in a losing position never add more trades in the hope that the price will be in your favor later
5.Don’t go against the markets – if the mraket is in downtrend dont take long positions, waiting for a pullback and then look for a good spot for open a short position. if the mraket is in uptrend dont take short positions, waiting for a pullback and then look for a good spot for open a long position.
6.Money management - cut your losses short, and let profits ride, this is the most important principle that you must implement in forex trading.
7. Study your success and failure - successful forex traders keep a diary, a journal of trading activity where they carefully scrutinizes mistakes and successes to find out what works and what does not.