Learning to trade forex can sometimes seem like an incredible learning curve. Hundreds of books and websites to choose from so where do you start? Most forex training simply regurgitates the same starting principles. Discover 3 great tips that you need to know to become a better trader.
Discipline, Discipline and Discipline
I mention this three times because it underpins everything that you do as a trader. As you learn different techniques, you must implement them properly. You must not let your emotions get the better of you.
Everything that you do in forex must be logical. If you enter a trade then you must always have a good reason to do so. Never, ever trade without a reason.
You must also know when you will close out the trade. Do you just let the trade go and hope for the best? Of course not! You must have your own rule for when to quit e.g. when the price traces back 10% from a peak, or something similar.
Never rely on your gut or intuition. It is unreliable and one mistake could cost you severely.
Manage Your Bankroll
Never bet everything on one trade. None of us get it right for every trade that we make, we all get it wrong sometimes. If you put everything you have on one trade and lose then you can't live to fight another day.
You must manage your bankroll properly. Only you know how much risk you are prepared to take. Maybe 20% per trade is OK with you but for some people that is still too much risk and they would never go over 5%.
Set a rule and stick to it.
Never Stop Learning
The great thing about forex is that there is always something new to learn, another technique or tip to add to your armory that will help you make more money.
Get into good habits and constantly pick new things. If you form these good habits from the beginning then you will continue to enjoy a lot of success trading forex and most importantly, making a lot of profits.
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