10 Tips for Online Forex Traders

Without a doubt, trading is more than a few quick tips for success. ou need experience, fortitude, capital and, abo!e all, a solid trading s"stem. #owe!er, for beginners and those who are perhaps losing their focus amid significant drawdowns, keeping things simple can introduce much$needed focus into "our trading. To that end, here are 10 tips for trading e$forex that can help "ou get a handle on these exciting markets. 1. For small accounts especiall" %&'(,000 and under), trade with the trend. *an" beginners look for trades in an" direction. While forex trading easil" permits bi$directional trading, trading in the direction of the trend impro!es "our odds o!er the long run. '. #a!e two accounts. One real account and the other a demo account. +earning doesn,t stop when trading real dollars begins. -eep the demo account and use it to test alternati!e trades, alternati!e stops, etc. For example, "ou can shadow "our real trades with identical ones in "our demo account, but widen "our stops in the demo in an effort to see if "ou,re being too conser!ati!e. .. /top looking for leading indicators. There aren,t an". While some firms make a lot of mone" selling software that predicts the future, the realit" is that if those products reall" worked, the" wouldn,t be gi!ing the secret awa". 0. 1xamine dail" charts, four$hour charts and one$hour charts to time "our trades. While trading at .0$ and 1($minute time increments is doable, it takes a great deal of dexterit". (. 2on,t trade the time frame. Trade the pattern. 3e!ersal patterns, hesitation patterns and breakout patterns appear often. +earn to look for the pattern in an" time frame. 4. 5f "ou,re properl" funded, trading two lots is safer than trading one. Trading three lots is safer than two. Trading is a s"nthesis of emotions, technical anal"sis and mone" management. One lot makes it difficult to weigh these elements in deciding to enter or exit. Two lots is easier and, pro!iding "ou ha!e the capital, three lots is optimal. 6. 1xtreme trading can be the most conser!ati!e trading. Trading at the extremes when prices touch or break or bounce off trend, support or resistance lines increases the odds that "ou ha!e chosen the correct direction. 7. /can the 8ig Fi!e $ the dollar9"en, euro9dollar, /wiss franc9dollar, euro9"en and pound9dollar before "ou decide to take a position in an" one of them. There might be something ob!ious "ou,re missing. :. Follow the ;pside 2own 3ule. 5f "ou can turn a chart upside down and it looks the same, sta" awa". 10. 2on,t count profits in "our first '0 trades. -eep track of the percentage of wins. Once "ou know "ou can pick direction, profits can be increased with multi$plot trading and !ariations in using "our stops. 5n other words, now is the time to get serious about mone" management.