Avoid Fatal Mistakes During Your Trading Career

There are iron rules in each business and ignoring these rules will make the players kicked out quickly from the game, this is also applied in forex trading. Apply these forex trading tips in your trading career to make steady profits, keep your account save, and play by the rules:

1. Never Make An Entry Without Doing Analysis First

Yes, sometimes you will see something that looks like a great opportunity, maybe from news or a glance of the trends. These so called opportunities may bring you profits once or twice, but it is only pure luck, you will never survive in forex trading if you let your emotion take over logical decisions.

This has happened to the majority of the traders when they began; they manage to gain profits by speculating, thinking that they already master the secrets of forex trading, and start giving forex trading tips to their friends. This attitude is the same to a gambler in a casino: throw the dice and pray. You will lose everything in no time with this behavior.

2. Learn Step by Step

Foreign exchange has numerous aspects and elements; it's simply impossible to master it right away. If you just start trading, don't throw USD10,000 to your account and experiment with it. Trading currency is like gambling; when someone lose, there are always a winner at the other side. These winners will have your USD10,000 with just a few trades, but by reading this forex trading tips you are knowledgeable enough not to do it.

The best approach is to take it slow. Start with a practice/dummy account while learning. You are able to test various methods, currency pairs, expert advisor, and trading signals there without concerns. If you have discovered a system that works, you can proceed to a mini account for additional test. Nevertheless, if you believe in your system, go ahead and open a live account.

By "system that works", I refer to a system that can generate profits on regular basis at the end of the month without you have to spend your entire time maintaining your open positions. If you have confidence in it, be able to control your emotion and allow it to do the task.

3. Use a Credible Forex Trading Platform/Online Forex Broker

Regardless of how good your system is, trading in a bad quality platform will ruin your chance to gain profits. Usually, you will get free trading platform from your broker; these are what you need to look in your trading platform/forex broker:

- Support all currency pairs that you interested in. At the minimum it must support popular currency pair like EUR/USD, GBP/USD, and USD/JPY.

- Allow you to put take profit and stop loss order; this is very important risk management method.

- Provide charting feature, news feed, advices, and research material; to make it short: all that you need to make proper analysis. If possible, a daily forex trading tips can be beneficial as well.

- There are someone in their staff that ready to help you. If possible, get the one that provide 24 hours support so you can contact them any time when you get problems.

- Currency trading is a worldwide business, so it is great if your broker take deposit in multiple currencies.

- Simple procedures applied in their services, including withdrawal.

4. Discover how to Use Stop Loss and Take Profit Order

Stop Loss and Take Profit is orders that you put to close your position at certain price. Example: you buy GBP at 1.678; then you place Stop Loss order at 1.648 to limit your loss by 30 pips. You also put Take Profit order at 1.708 which means you will close it when you get 30 pips profit.

This is very important in order to stop your emotion to get involved on the "close decision" and screw it up. If the market is move against you, you will not close the position since you really want the market to swing back to your side, thus turn possible loss into profits. Most of the time, this kind of of behavior will only create more losing trades. This is very important since it is the cause of many traders falls. If you don't remember everything that I mentioned in this forex trading tips, remember this: emotion will only make your trader career short.

The other scenario: The market moves as you wish and you see potential profit, but you won't close it since you want as much profit as you can get. Nobody know when the market will turn against you and when it does, it usually already too late. In both scenarios, greed is the one in movement. But when logic dictates, you can control greed.

Main point here: you should not rush everything when you study or trade forex. Take your time to learn the rules, experiment, practice, analyze, and read several forex trading tips for the day. However, I don't recommend you to do it by yourself since it can be long and painful process.

Source: http://www.artipot.com/articles/669265/forex-trading-tips-avoid-fatal-mistakes-during-your-trading-career.htm