Forex is something different than the stocks many trade, but in many ways, the strategies used there can be shared in Forex. Most market movements are similar, and certainly analyzing is very similar.
We've taught you the basics, but for the more advanced, here are some simple tips that can help you trade smarter and better in Forex!
1. Make PlansAlways stick to a plan, and never deviate from the plan unless absolutely necessary. Know when to drop out, when to cut your losses, and what a gain and a loss is. To some, you may want to generate an additional
income, while some may seek financial independence. Know what times are for learning and what times are for serious trading; there should be a block of time where you are doing the real stuff, and other times when you're testing a new strategy. Don't let these overlap;
it can interfere with what you are doing. Always be focused, and always do what you need to be doing.
2. Focus on one pair, not multiple pairsAll pairs differ from one another. Trading multiple pairs can become confusing, as each pair has its secrets. We recommend you spend as much time as possible on a specific pair as possible- it can help you make the most out of it. It's very difficult to learn multiple pairs at one time, especially for beginners. If you do like trading more than one pair at a time, try
the more commonly known pairs- these are great to experiment with, and are great for both the amateur and the expert!
3. Do rational moves, do not let your emotions take the wheelIf you suffer heavy losses, do not keep on trading in hopes that you'll recoup the losses. Instead, learn to cut losses and switch when possible. If your pair is suffering heavy losses, look at historical charts. There are time when a pair drops and when a pair will rise, but generally, it will reach a level where it will bounce back. Do not make a move out of impulse, and look at all the historical
information available to try to understand why it's happening. It's a good idea to restrain the amount of money you can trade, so that you won't be tempted to use it all up. Sadness and joy have no place in trading; it's a big world, and the smartest wins.
4. Choose a good and reliable brokerBrokers are often neglected by traders, as they are seemingly only a small part in the trading world. This is not in the smallest bit true, as having a good broker can mean the difference between you making profits, or having a fake broker invalidating all of the profits. What kind of client profile does the broker want? What kind of coffee does he drink(you get the point, you have to look at every detail of the broker; look for pros and cons). Look at the reviews for each broker before making a decision,
as most of these are true(search around, don't just look at one website, some are not reputable), so you can get a general idea of the broker.
5. Never lose hopeThis is something many people don't do. Just like riding a bicycle, nobody learned that in a day. Don't expect to become a pro overnight; learn as much as you can, and you WILL reach your aspirations. This is true for everything else on this planet, so why should Forex be an outlier? Unless you do something extremely risky that you know you should not have done, and you right your wrongs, the minor pains along the way will only be a distant memory in the future.
We hope you gained something from our tips, and we wish you profit!