Forex Trading Tips

Here are my top 6 Forex trading tips:

Get educated
Read books. Take courses. Get to know the market.

Don’t risk more than you can afford
I never risk any more than 30 pips per trade. While this may seem extremely conservative to some, I swear by the tortoise mentality and it’s never done me wrong.

Always trade with a stop
When you place a trade, you can elect to enter the market immediately or you can decide that you want to enter when the market reaches a certain price. A stop is your ‘insurance’ against a massive loss. You elect a price that you will exit on if the trade is not going your way.

Know your strategy
Always know the trend of the market and trade with that trend. Know your entry point and your exit point. If you choose to trade by technical analysis, know your chart patterns and what they mean.

Stick with your strategy
This is one of the hardest things to do! Sometimes I can go for weeks without placing a trade. I get the ‘itch’ to get into the market, and my patience wears thin. This is around the time that I’ll look at a potential trade, do my analysis, see that the analysis tells me not to enter the trade and I’ll decide it’s time to take a risk. BIG MISTAKE. Know your rules and stick with them.

Be 100% sure of your trade before you enter
- There are three ways that I make sure I’m 100% sure of my trade. The first is that my analysis stacks up and the chart patterns are telling me the right story.
- The second is making sure I have the correct amount of capital and can afford to lose the trade.
- The third is pure gut instinct. Sometimes I’ll hesitate before placing a trade, and I really need to ‘check in’ with myself.

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