1. Accept the possibility of losing your money as an inevitable fact. Every beginner trader should be aware that no one is safe from losses in the currency market. The basic rule of online currency trading is to keep the profit above the losses.
2. Bid only with a carefully thought up out plan. Before you start trading, you should determine how much of your own money you are willing to risk and what profit you expect. This will be your balance of risk and profit. Successful traders never enter trades without a clear goal.
3. Do not be afraid of the foreign exchange market. Many novice traders are afraid of uncertainty and risks of the foreign exchange market. Those who can overcome this are rewarded with a substantial increase in investments.
4. Take responsibility for your decisions. Successful traders will never disclaim personal responsibility. It is you who enter the market and it is you who assume all responsibility for the transactions, profitable or unprofitable.
5. Do not let greed take over. When bidding begins successfully, traders often forget about the previously set goals, hoping for the same successful continuation. However, the market is very volatile and trends may quickly end. Once the target price is reached, immediately withdraw the profit or raise the stop-price to avoid losses.
6. Effect of news on the trades. The increase in trading volume caused by a much-publicized event leads to the movement of prices, which is sufficient to ensure that traders use to their advantage short and rapid changes on the market. Inexperienced traders often aim for one trading transaction per day, which would make considerable profit.
7. Do not have illusions. If an open position is getting worse, do not stay on the market in the hope of the trend turning in the direction that is favorable for you. Immediately leave the market.
8. Remove emotions. The cause of losses often lies in excessive emotionality. Turn off emotions during transactions. Stick to your plan and do not forget to set stop loss orders.
9. Trend is your friend. Trade along the direction of the trend and your profits will grow.
Advices just before starting:
10. Do not hurry. Beginner traders often start several trades, and then notice that they are not able to monitor them all. You can make profit in Forex when the exchange rate is going up and when it is falling. Successful earning is only possible for one currency pair. Therefore, first focus on one currency pair and get to the others gradually.
11. Remember the stop order. A frequent cause of losses is wrong money management. To prevent huge losses, you must use a stop order.
12. Trading system. Every trader has a trading system, which they adjust to their liking. Some traders prefer a system of trading once a day, other are attracted by longer periods. The idea is stick to the original plan of trading. Several unsuccessful trades may not always indicate your system is unprofitable.