5 Must Have Tips

This article goes out to investors who are new to the FOREX market. Over the years I have gained much experience in dealing with FOREX and I have gathered here a little bit of advice, so that you have a safe landing when you take your first jump into the world of foreign exchange. Here are my five most essential tips that I believe should be your fundamental guidelines:

#1: Use the "Stop-loss" system.
Do not counts neither profitable trades nor losing trades. The smart investor knows how to increase his winning value and cut his losses to the minimum. The bottom line in FOREX is how much money you have made – it is the dollars and cents you gained rather than your win to loss ratio.

#2: Learn the foreign currency exchange market.
After choosing the currencies you’ll be trading, educate yourself about the country whose currency you’re trading. Use the media that nowadays is freely available to everyone, and learn every aspect possible so that in time you will be able to predict trend movements as accurately as possible.

#3: Margin and leverage is NOT free money.
Two of the so-called advantages of FOREX are leverage and margin. In my opinion, margin trading is nothing short than a safe and a fast way to lose a lot of money (in sums you never thought possible). Learn about the margin trading system and unless you are one hundred percent sure what you are doing, stay away from the margin.

#4: FOREX trading system and consistency is everything.
Choose a trading system that fits you and stick to it. Experienced FOREX brokers and trades will back me up on this one - acquiring a system lets you automate your trades based on history, charts, trends, predictable peaks and valleys, and not by your emotions and urges. Haste decisions based on urges will usually lead to lose.

#5: Open a FOREX demo account.
Practice FOREX trading by using a demo account, they are great for studying the market and learning how trading really works. Always remember, demo accounts aren’t the real world, so when you feel like you have learned enough from the demo account and that you are ready to start doing some serious FOREX trading, I suggest switching to a mini FOREX lot, thus minimizing your risks while learning the big-boys game.

May good luck shine upon you in all your future trades!