Top 10 Best Forex Trading Tips

There are lots of Forex Trading Tips you can find on the internet which could prove very helpful and informative to improving your overall Forex Trading Performance. Here are my most cherished and followed Top 10 Forex Trading Tips.

Forex Trading Tip #1

The number one Most Important Forex trading tip for me is a proper and Strict Money Management Rule. The only common denominator amongst Successful Pro Forex Traders around the world is a Strict Money Management principle because you could be using the best Forex Trading System in the world but without proper money management you would still blow your trading account, its that simple.

Back when I started Learning How to Trade the Forex I was misdirected placing a lot more emphasis on finding the Holy Grail 100% no loss Forex Trading System (which is non – existent by the way, don’t be fooled by the ads you see on the internet), instead of developing a Forex Trading System with a modest win rate and perfect it by defining what percentage of my trading capital to risk per trade focusing more on loosing less than on winning Big one time, striving to protect my profits at all cost.

All professional Forex Traders know and observe this fact to its fullest extent, why should you try doing otherwise and join the loosing majority? My advice to you is never risk more than 2% of your entire trading capital on any one trade ever, Never!

Forex Trading Tip #2

Proper Trade Management. Opening a trading position placing stops and profit targets, then folding your hands and waiting for the first one to hit is unacceptable, that is no way to trade the Forex.

Like I said earlier we are trying to cut down our risk and market exposure at the slightest chance we get because half the trick to trading profitably is cutting our losses short and letting our profits soar.

To understand this clearly let me give you an example, you spot a trade setup on the Euro, to place a buy order risking 20 pips whilst going for 40, you open the trading position and place your stop and profit target, then go about your daily activities only to get back and see you lost that trade, not because the market didn’t move in your favour but because you never really properly Managed the trade moving your stop to risking only half of the original 2% risk you were initially exposed to cutting it down to 1% and then 0%or a Free Trade as most call it, to locking in some profits when the market continues to move in your favour guaranteeing a winning trade or loosing just a Fraction of what you might have lost just letting the trade take care of itself.

Can you now understand the power of Trade management to your overall Forex Trading Success.

Forex Trading Tip #3

Always go for the Forex Trading Sessions with the most volatility because that is where the action is, that’s where fortunes are made, I personally prefer trading the London Session and the London/New York Session overlap but call it a day at the London Close because the seems to be a somewhat anaemic price action after the London close with lesser traders looking to place trade in the quieting markets.

Forex Trading Tip #4

have a systematic approach to trading the markets. trading should be approached systematically governed by a set of rules. Trading should never be based on gut feeling or instinct, but rather on facts and logic. I would prefer to follow my Forex Trading System rules and loosing a trade than winning one disregarding my system rules and trading on emotions winning emotional trades only puts you in more danger encouraging you to do the same thing next time.

My advice to you, follow an already successful Forex Trading system or create your own system from the ground up if you feel up to it.

Forex Trading Tip #5

Never second guess your Forex Trading System, doubting your trading system exposes you to a much greater risk of failing at the Forex. Being humans, we are always unsettled when faced with irregular patterns and randomness. The market on the other hand, is as unpredictable as the word gets.

Trying to be successful at trading without an order of actions to follow only shows us first hand how vulnerable and petit we really are before this enormous financial markets.

Stick to your system come what may, though you might loose a few trades here and there but you stand a higher chance of succeeding at trading with a profitable Forex Trading System you follow religiously without fail.

Forex Trading Tip #6

Never dilute your trading efforts trading too many currency pairs. Every currency pair is different not just as represented by the symbols or the quote convention but also in the characteristic price action behaviour it exhibits.

Every pair has a unique average daily range it travels within any given Forex Trading Session. There are hundreds of forex trading systems that can be used on all currency pairs but scalability like I always say is one of the most important factors of Forex success.

Focus all of your trading efforts on one pair, I usually  advice newbies to trade the Euro because it’s easier to trade being more newbie friendly with some serious volatility, and when you are confident enough, add another pair and another, and another until you are satisfied. This transition makes it a lot more easier than just opening the charts of all pairs and running from chart to chart looking for god knows what, and thus blowing your account.

Forex Trading Tip #7

Master the art of Trading Execution, try as much as you can to regard the trading dollars in your account as pips and not as money.

Money represents a lot of things to a lot of people, loosing it even makes that emotions worst. To some it is the kids college tuition, to others, it is the mortgage, regardless, when you trade with the fear of becoming homeless when a trade goes wrong you are more prone to making irrational trading decisions that could kill your trading career prematurely.

Strive to master the art of flawless trade execution, observing proper risk management and you’ll succeed.

Forex Trading Tip #8

Always use stops, never open a trading position, letting it sit with no stops and profit targets. protecting your profits at all cost should always be your top priority.

Always use stop loss and profit targets orders with your trading positions not forgetting to manage your trades to minimize your risks and maximize your profits.

Forex Trading Tip #9

Always wait for a candle to close before opening a trading position. This tip would prove very useful for traders observing candlestick patterns and formations opening a trade before the close of a candle would leave you confused as to whether the conditions you saw before making your trade decision were really there or you were just imagining things waiting for a candle close keeps you relaxed and makes for better trades as you get better at trading with time and experience.

Forex Trading Tip #10

Find yourself a Mentor. A mentor could be a friend a colleague or maybe even your In-law :-D. A Mentor could be a friend, a colleague, or may even your In – Law well, maybe not your In – Law because they’d be the first to say “I knew he was no good” when you blow your trading account.

A mentor should be there to guide, advice, and train you to be successful trading the Forex for a living. A Mentor will save you countless mistakes that’ll cost you time and money and above all get you on the track to making money trading the forex fast.

I can’t stress this enough folks, no Man’s an island, we all learn from each other. I will be glad to help you a journey to forex trading success and I hope you enjoy the Top  10 Forex Trading Tips.

I look forward to hearing your comments, as always I remain…

Anas Abba

(Forex Coach) 

  

Discover My Amazing Breakthrough Formula That Helps Siphon Loads of Cash To My Bank Account From The Forex Market Name: Email: The 5-Part eCourse "Forex Earning While You Learning"

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