1. In forex trading, cut your losses and let profits ride:
The only way to make money from forex trading is by making enough money on your winning trades to cover your losses and to gain additional profit to grow your capital.
It is harder to put into practice than it sounds, as psychologically, it is much easier to "marry" your losing trades in the hope that the market will turn in your favour and grabbing your profit too soon when you see your hard earned gains slipping away as the market temporarily turns against you.
2. Trade according to a tried and tested system:
The only way to cut out emotion in trading and adopts a more business-like and informed approach, is to use a system that have been developed and tested on market data.
In this way, all the trade decisions have already been made before you even enter the forex market.
This is a much less time consuming and less stressful way to trade for a living.
It is wise to open a demo account and to practice forex trading before risking your money.
If you are unsuccessful in a demo account, it is unlikely that you will suddenly become an expert trader in a live account, when using your own money adds to the pressure to succeed.
Above all, never risk more money than you can afford to lose.
3. Realise that forex market is unpredictable:
The forex markets are influenced by billions of traders, economic and political events.
You simply cannot predict the direction and manner in which the markets will move.
Technical and fundamental analysis does much to provide a more educated guess than a simple coin toss but it is important to realise that each of these techniques will have a large failure rate.
You will lose a large percentage of the time. Some times you will lose on more trades than you gain on the trade.
4. Have a realistic expectation:
Forex trading is an investment. It is important to have a realistic expectation of what you can achieve through forex trading.
The nature of forex trading is such that you may make a good return on your initial capital over an annual period. During that period you may have a number of consecutive losing months, with only a few bumper months in between.
Visit the links below to open a forex trading account today and start trading without further delay:
1. www.agea.com/?gid=53541
2. www.instaforex.com/en/index.php?x=LGYM
Good luck in your forex trading venture.
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