Keep a trading journal to record your losses or profits at the end of each trading session. You should write a few details about your investments and try identifying your mistakes if you ended up losing money. Go over your journal regularly to see if you are progressing. Keeping a journal will help you calculate how much you earn thanks to Forex or how much you are losing on this market.
Do not invest before learning more about the current trend. You should subscribe to several RSS feeds or social media updates to learn about current trends and market analysis. Make sure you get your information from professional traders or use the tools provided by your broker.
It is best to read about the trend on a daily basis, even if you do not plan on trading. If you had to take a break from trading and do not have a good idea of what is happening on the market, take the time to catch up before investing.
Adopt an efficient trading schedule. Specialize yourself in a currency pair and make sure you can be online when the financial markets of the two countries are simultaneously open. Switch to a different currency pair if you have to be at work when the markets are open at the same time. Keep in mind that the Forex market is usually very slow between Friday night and Monday morning. Trading during weekends is really not a good investment of your time.
Use stop loss orders to minimize your risks. You should be able to set some stop loss orders through the software provided by your broker. Establish your stop loss orders as soon as you make an investment, for instance to sell your investment when its value diminishes or once you meet your goal. It is best to sell your investment as soon as you make a small profit instead of keeping it longer and taking more risks.
Do not let your stress influence you. If you often feel nervous while trading, you need to work on controlling your emotions. Some stress management techniques could be helpful but keep in mind that you might be experiencing stress because you are not entirely confident in your strategies. If necessary, go back to studying Forex trading until you feel more comfortable.
Make smaller investments to avoid experiencing stress if you are not comfortable with risking large amounts of money. Remember that investing more than you can afford to lose is not a good strategy. Trading might not be a good choice for you if you cannot keep your stress under control.
These Forex trading tips will help you improve your current strategies and earn more. You should talk with other traders to share tips and ask questions if you are not sure how efficient your current strategies are.
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