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Forex tips and ideas

  • Traders often fail because they don’t learn from mistakes. Keep a diary of trades to discover what works and what doesn’t.


  • Setting limit orders and stop/loss orders takes emotion out of the equation and ensures trading discipline.


  • Trade small amounts when you are a beginner. Grow your account balance through profits, not deposits.


  • Don’t set a stop loss order too close to the opening position price. Normal market volatility can trigger it if you do.


  • Don’t chase a losing position out of emotion. Stick to your trading plan and don’t throw good money after bad.


  • Don’t reinvent the wheel. Study other forex traders’ strategies to see what works and what doesn’t.


  • High leverage isn’t free money. Manage your money wisely and stick to low leverage. That’s what the successful pros do.


  • Forex trading isn’t gambling. Look for steady profits rather than hunting a few big wins.


  • Plan all your trades in detail before you make them, otherwise emotions can lead to bad decisions later on.


  • Don’t hold too many open positions at the same time. Unless you automate them all, you will end up being overwhelmed.


  • There isn’t a single perfect trading strategy. The most important thing is to pick one that suits your personality.


  • When you are following a trend, use a trailing stop to lock in your profits.


  • Some currency pairs are volatile and others are relatively stable. Choose the pairs that best suit your risk profile.


  • Technical analysis is well-suited to short-term analysis, while fundamental analysis may be useful in the longer term.


  • Weekends are a good time to learn from your past week’s trading and to plan for the week ahead.


  • If you find yourself getting tired, angry or frustrated when trading, take a break to get yourself back under control.


  • If you keep positions open for a long time, be aware of rollover charges. Some accounts charge these each day at 5 PM EST.


  • Pay attention to economic calendars. Surprises in GDP and other data can move the market quickly.


  • Make market analysis part of your daily routine. It’s better to make a few informed trades than many random ones.


  • Successful traders study their craft. If you are a beginner, consider taking an online course to master the basics.


  • When starting out, study a single currency pair. Don’t spread yourself too thin by trading multiple pairs.


  • Don’t let greed turn a profit into a loss. Stick to your trading plan and don’t let emotions get in the way.


  • Remember that your goal is to make long-term profits. Don’t let a single good or bad day change the way you trade.


  • Not all forex trading advice is good advice. Filter your inputs carefully based on the reputation of the source.


  • You can learn from other traders, so share your experiences. However, make your own decisions since it’s your money.


  • Set stop/loss and limit orders to reflect your tolerance for risk. The further apart they are, the more risk there is.


  • If someone has a way of doubling their money each week, then why would they tell you? Stick to proven strategies.


  • Automate your trading whenever you can. This will stop your emotions from doing damage when you have an open position.


  • There is no such thing as a guaranteed profit. Remember that small losses that you planned for are wins as well.


  • Choose a reputable forex broker that offers you trading conditions and currency pairs that match your trading strategy.


  • Boredom is no reason to open a position. Be patient and look for real trading opportunities.


  • Volatility is an opportunity for both profit and loss. Converging Bollinger Bands often indicate volatility ahead.


  • Don’t get overconfident when you have a big win. Stick to your trading strategy and don’t take reckless risks.


  • Interest rates, employment and geopolitical events are the main factors to consider in fundamental analysis.


  • Don’t go against trends unless you have the financial and mental strength to survive a long string of losses.



  • You make the best trading decisions when you are healthy and rested. Get plenty of sleep and exercise.


  • If you over-leverage your trades, there is a real risk that you will be forced to exit a position at the wrong time.


  • Pay attention to the spread between the bid and ask. This can change and make the difference between profit and loss.


  • If you start out by making simulated forex trades, remember that real trading is very different because of emotions.


  • You will often find the highest trading volumes when New York opens in the morning and Europeans come back from lunch.


  • Always plan your exit strategy up front. At what rate will you cash out winners, and when will you cut your losses?


  • Always look at the potential downside of any trade and plan to limit your losses if the worst happens.


  • When manufacturing economies such as China grow, commodity-based currencies such as CAD and AUD often rise.


  • Don’t just rely on technical or fundamental analysis. Successful traders take both into account before they trade.


  • Study horizontal support and resistance levels. Look for price action at these to find high-probability opportunities.

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