You can never have enough Forex Tips so here we present you some more.
Extra Tip 1: You should have in mind that trading strategies which work well in a bullish market may not work in a bearish market.
The same can be said for trading systems which work well in a trending market but may not be used in a ranging market. So you must have a solution or rather a trading system for each type of market or ensure that one trading system will work well under all different market conditions. Of course you have to do an extensive testing to know the result.
Extra Tip 2: You should not try to pick price tops and bottoms.
It is a difficult method which many traders have adopted or try to adopt. Searching for bargains is good if you go shopping but you might get in trouble when you applied it to Forex trading. So you should identify the trend and join it.
Extra Tip 3: You should always have in mind that the first and the last market bars/ticks are the most expensive ones.
You should enter the market on the first ticks and be out of it at an early stage. On the market opening you should never trade in the direction of a gap.
Extra Tip 4: You should not worry about missing out a trading opportunity.
You should not make a trade which does not match all entry rules. Have in mind that trades are never running dry, so cheer up and always stick to your rules and your trading plan.
Extra Tip 5: Use the knowledge about currency correlation in Forex trading so you can simply prevent opening positions which cancel each other.
E.g.+20 pips on one pair and -20 pips on another = 0 pips. You should figure out which currency pairs move simultaneously and which ones move in opposite direction.
Extra Tip 6: You should always set a stop-loss for every trade.
Even though your trading system needs no stops, you should have it. The reason is not because you are going to use it but you should just have it for the safety of your trading capital. A sharp and huge move in the Forex market could damage your trading account especially if a margin call is triggered.
We have insurance for a lot of things in our normal life, so why do not have one for our trading account? For trading systems which do not use stop-loss orders you should put one on a decent distance, e.g. 100 pips. You should not use too tight stop-loss orders because they will most likely be hit more often then you need to.
Extra Tip 7: You should only trade Forex when you are 100% focused on trading.
The time that you spent in front of your monitor does not expect profitability, so you should not fool yourself.
Extra Tip 8: You should never trade with money which you can not allow to lose.
That is one of the biggest problems why Forex traders who are switching from Demo to real account often may find themselves losing trades in a row with a system which used to be profitable. The explanation for this is that with a real account they are scared to lose money while on the Demo account their minds were free.
You should never trade Forex if you can not afford to lose your money. By the way you should not trade when you have to make a certain amount of money per month to pay your bills in order to prevent financial trouble. Forex trading under a scared condition is the best way to overlook all trading rules, discipline and get extra stress.
We wish you much success to achieve your trading goals!