Beginner’s Guide to Online Forex Trading – Chapter 17: Conclusion

Beginner’s Guide to Online Forex Trading – Chapter 17: Conclusion
As we have seen Forex trading relies on a number of factors including: having a good computer, and software, having a reputable broker which enhances the execution of your trades, lots of practice and education, and a trading strategy which of course you must follow closely.

Read this chapter very carefully, as these are the essentials you simply must know before you get involved with trading the Forex market

FX Trading Rule #1

Create a trading plan the night before the next day. Look at the Close, Bid, Ask and other details to help you plan your steps. Remember to stick to your trading plan and not to become unpredictable or emotional in your trading strategy.

FX Trading Rule #2

A good day trader knows and follows at least one currency pair intimately and becomes really familiar with it. By doing so, the trader will become accustomed naturally to the speed and pattern of the chosen pair.

FX Trading Rule #3

Greed destroys the plan. Don’t become greedy and wait for the last minute in each trade to make more profits.

FX Trading Rule #4

Accept loss at times wherever necessary- its part of the process

FX Trading Rule #5

Don’t panic if you miss a trade which looks profitable, coming in too late is worse then not coming in at all.

FX Trading Rule #6

If you’re not sure about a particular trade, then don’t trade, this is called overtrading and it will eat away at your bankroll.

FX Trading Rule #7

Trade the trend. Of course markets are highly volatile but don’t let this panic you. Follow the overall pattern of the trend.Technical analysis like charts can really help a lot here.

FX Trading Rule #8

Protect your capital and trade using your profits

FX Trading Rule #9

Stay on top of the market news. Ie. for a particular currency. You can have the news delivered to your inbox through an RSS feed or though specific newsletter.

FX Trading Rule #10

It is also important for you to know the risks related with currency trading to have a crystal-clear picture as you start considering opportunities. Invest your money wisely and only invest what you can afford to lose.