4 tips to a succesful forex trading.

December 9th, 2008 by Dayo


One of thing most forex  trader lack is happiness in trading. I want to use this small space to provide you with some information that will help you to have  a continous succesful trading.

1. Money management:
Never exposed more than 20% of your accounts equity in trading. Maintaining 10% per trade will be a great help particularly during highly volatile moments.
2. Specific entry and exit rule:
This is one thing most trader ignore a lot, particularly when one trade goes contrary to their expectations. Throwing caution to the wind can be very damaging to both one’s account and health. You need to have a decent trading system that point to you the very specific entry and exit rules to follow before accepting any trade as high probability trade.
3.  Choose your best currency pairs and indicatiors wisely:
Your trading system should give you clear selection criteria for both tradeable currency pairs and best indicators for determining trend, confirmation and identifying of overbought and oversold markets.
4.  High turnover:
Becoming a trader of significance in  the forex market is not in making a kill in one single trade or trading day, week or month. Many traders still do not understand this. with small profit compounded over a period of one month to 12months, you can only imagine how rich you would have become over time. No need not to be in a hurry, the power of compounding is very great and this is what top professional traders, who are making significant impact, used in their favour.
Remeber, there is no oracle in the forex market. It is just a measure of predictability and ability to stick to the rules.

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