5 Forex Trading Tips

1. If you’ve never traded Forex before, I recommend opening a mini account first. Trade less and become accustomed to the quick Forex market, before you start using the higher leverage of a standard account.

2. Start off trading small. By that, I mean to trade one mini lot per order at first. Start off with only one order in the market at any one time. Once you get profitable with that, then you can increase your lot size. However, if you can’t make money with a one mini lot trade, you wouldn’t have made money with five mini lots at risk. In fact, your loss would be five times bigger!|

3. Start off with a well-capitalized account. Many traders start off saying, “How much do I have to start an account with?” That’s not the right question. You should be asking yourself, “How much is practical to start out with?” You will find that you should start most mini accounts with at least $3,000 to $5,000 dollars. Yet in the industry, FX dealers will let you trade with as little as $1000 dollars, but I don’t recommend it. Too little capital equalstoo high percentage of the account risked on each trade. That’s the logic behind this point. 

4. Risk ONLY 1-5% of your account balance maximum! If you have to risk more of your account than that on a trade, then you don’t have enough money in your account or your stops are excessively wide. Most people err on the former rather than the latter.

5. Start off trading the most liquid pairs out there. These will be the ones with the smallest spreads between the buy and sell quotes. This will be pairs like EUR/USD, USD/JPY, GBP/USD, USD/CHF, EUR/CHF, etc.

Related Posts:

1. Quick Start Tips For Beginners in Forex Trading
2. Forex Trading Tips – Top 3 Money Management Rules to Succeed in Forex Trading
3. Six Trading Tips for the Forex beginners
4. Forex Trading Tips – How To Choose The Best Pair For Forex Currency Trade
5. Forex Trading Tips – Top 3 Money Management Rules to Succeed in Forex Trading
6. Forex Trading Tips To Help You Make Money
7. Top 8 Tips To Help You Start With Forex Trading