Forex Trading Tips : 10 things you need to know to be a successful trader

1. Forex Trading Tips : 10
things you need to
know to be a
successful trader
Forex Buffalo

2. 1. Know yourself. Define your risk tolerance
carefully. Understand your needs.
• To profit in trading, you must make recognize
the markets. To recognize the markets, you
must first know and recognize yourself. The first
step of gaining self-awareness is ensuring that
your risk tolerance and capital allocation to forex
and trading are not excessive or lacking. This
means that you must carefully study and analyze
your own financial goals in engaging forex
trading.

3. 2. Plan your goals. Stick to your plan.
• Once you know what you want from trading, you must systematically
define a timeframe and a working plan for your 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? How much time can you devote to
trading? Do you aim at financial independence, or merely aim to
generate extra income? These and similar questions must be
answered before you can gain the clear vision necessary for a
persistent and patient approach to trading. Also, having clear goals
will make it easier to abandon the endeavor entirely in case that the
risks/return analysis precludes a profitable outcome.

4. 3. Choose your broker carefully.
• While this point is often neglected by beginners, it is impossible to
overemphasize the importance of the choice of broker. That a fake
or unreliable broker invalidates all the gains acquired through hard
work and study is obvious. But it is equally important that your
expertise level, and trading goals match the details of the offer
made by the broker. What kind of client profile does the forex broker
aim at reaching? Does the trading software suit your expectations?
How efficient is customer service? All these must be carefully
scrutinized before even beginning to consider the intricacies of
trading itself.Please refer to our forex broker reviews to find a
reliable broker that suites your trading style.

5. 4. Pick your account type, and leverage ratio in
accordance with your needs and expectations.
• In continuation of the above item, it is necessary that we choose the
account package that is most suited to our expectations and
knowledge level. The various types of accounts offered by brokers
can be confusing at first, but the general rule is that lower leverage
is better. If you have a good understanding of leverage and trading
in general, you can be satisfied with a standard account. If you’re a
complete beginner, it is a must that you undergo a period of study
and practice by the use of a mini account. In general, the lower your
risk, the higher your chances, so make your choices in the most
conservative way possible, especially at the beginning of your
career.

6. 4. Pick your account type, and leverage ratio in
accordance with your needs and expectations.
• In continuation of the above item, it is necessary that we choose the
account package that is most suited to our expectations and
knowledge level. The various types of accounts offered by brokers
can be confusing at first, but the general rule is that lower leverage
is better. If you have a good understanding of leverage and trading
in general, you can be satisfied with a standard account. If you’re a
complete beginner, it is a must that you undergo a period of study
and practice by the use of a mini account. In general, the lower your
risk, the higher your chances, so make your choices in the most
conservative way possible, especially at the beginning of your
career.

7. 5. Begin with small sums, increase the size of your
account through organic gains, not by greater
deposits.
• One of the best tips for trading forex is to begin with small sums,
and low leverage, while adding up to your account as it generates
profits. There is no justification to the idea that a larger account will
allow greater profits. If you can increase the size of your account
through your trading choices, perfect. If not, there’s no point in
keeping pumping money to an account that is burning cash like an
furnace burns paper.

8. 5. Begin with small sums, increase the size of your
account through organic gains, not by greater
deposits.
• One of the best tips for trading forex is to begin with small sums,
and low leverage, while adding up to your account as it generates
profits. There is no justification to the idea that a larger account will
allow greater profits. If you can increase the size of your account
through your trading choices, perfect. If not, there’s no point in
keeping pumping money to an account that is burning cash like an
furnace burns paper.

9. 6. Focus on a single currency pair, expand as you
better your skills.
• The world of currency trading is deep and complicated, due to the
chaotic nature of the markets, and the diverse characters and
purposes of market participants. It is hard to master all the different
kinds of financial activity that goes on in this world, so it is a great
idea to restrict our trading activity to a currency pair which we
understand, and with which we are familiar. Beginning with the
trading of the currency of your nation can be a great idea. If that’s
not your choice, sticking to the most liquid, and widely traded pairs
can also be an excellent practice for both the beginner and the
advanced traders.

10. 7. Do what you understand.
• Simple as it is, failure to abide by this principle has been the doom
of countless traders. In general, if you’re unsure that you know what
you’re doing, and that you can defend your opinion with strength
and vigor against critics that you value and trust, do not trade. Do
not trade on the basis of hearsay or rumors. And do not act unless
you’re confident that you understand both the positive
consequences, and the adverse results that may result from
opening a position.

11. 8. Do not add to a losing position.
• While this is just common sense, ignorance of the principle, or
carelessness in its employment has caused disasters to many
traders in the course of history. Nobody knows where a currency
pair will be heading during the next few hours, days, or even weeks.
There are lots of educated guesses, but no knowledge of where the
price will be a short while later. Thus, the only certain value about
trading is now. Nothing much can be said about the future.
Consequently, there can be no point in adding to a losing position,
unless you love gambling. A position in the red can be allowed to
survive on its own in accordance with the initial plan, but adding to it
can never be an advisable practice.

12. 9. Restrain your emotions.
• Greed, excitement, euphoria, panic or fear should have no place in
traders’ calculations. Yet traders are human beings, so it is obvious
that we have to find a way of living with these emotions, while at the
same time controlling them and minimizing their effect on our lives.
That is why traders are always advised to begin with small amounts.
By reducing our risk, we can be calm enough to realize our long
term goals, reducing the impact of emotions on our trading choices.
A logical approach, and less emotional intensity are the best forex
trading tips necessary to a successful career.

13. 10. Take notes. Study your success and failure.
• An analytical approach to trading does not begin at the fundamental
and technical analysis of price trends, or the formulation of trading
strategies. It begins at the first step taken into the career, with the
first dollar placed in an open position, and the first mistakes in
calculation and trading methods. The successful trader will keep a
diary, a journal of his trading activity where he carefully scrutinizes
his mistakes and successes to find out what works and what does
not. This is one of the most importance forex trading tips that you
will get from a good mentor.