by Gerard on September 18, 2015

9 Useful Forex Trading Tips

Forex trading involves lots of analyzing and calculating. But for those of you who have been at it for a while, Forex trading is more art than science. The best of you are those who take their time improving their skills through practice and patience. Here I’ll be talking about 9 important tips that most Forex experts already use and many novice traders take for granted. Follow them and you’ll surely find better results in future Forex trades.

Forex Tip 1

Set goals that fit your style

forex trading tips As I said before, forex trading is an art. No two artists can paint the exact same painting in the same way. Set a waypoint that you want to reach in the Forex world. Stalk the Forex market and expert traders to understand their strategies. This will help you forge the path that takes you to your goal. The strategy of others that you will take a liking to depends on your personality. A little way down the road of your Forex trading career, you will be experienced enough to incorporate your own strategy that completely fits your trading criteria. Soon you will find that other novice traders are following you as their thinking process somewhat fits that of yours.

Useful Forex Tips Number 2

Do business with an appropriate broker.

Make sure the Forex broker you choose fulfills some basic requirements. The bigger they are, the more leverage they will have. The prices offered will be reasonable and the implementation of their operations will be state of the art. On top of that,

brokers like these can trade in massive bulks and is never late in paying the client, i.e. you. Whatever broker you choose, the trades must be carried out on a platform that includes certain features that you will definitely require. Choose the program wisely, as a bad choice will cost you time and money.

Is the broker prompt in their communication with you?

How good is their customer service?

If you want to test the broker’s response, check all available means of communication. Search the internet for reviews and testimonials about the broker of your interest.

Get 24/5 help with XM!

Forex Tips and Tricks 3

Be consistent in your style.

Whatever trading style you use, be consistent in it. At the same time, you have to make sure that your trading strategy and all the fundamental knowledge are considered. Use them to adapt your trading style according to the changing dynamics of the Forex market.

Forex Tip 4

Synchronize your time frame for direction analysis and time entry or exit.

This helps you by not allowing you to mess up all your calculations because of different time frames. Weekly charts and intraday charts, for example, can contradict each other when you don’t synchronize their time frames before analyzing them.

Forex Tips 5

Calculate your expectancy.

Expectancy is the formula you can use to find out how reliable your trading strategy is.

The formula is:

E = – 1

W is the average winning trade; L is the average losing trade; P is the percentage win ratio.

Forex Tips 6

Risk small, lose small.

If you just started out as a forex trader, you have funded your account and are all ready to start trading. Risk only a small percentage of your capital and never go all in. Make sure that if you face losses then you should be able to sustain and regain the lost money.

Start risk-free trading with XM Now!

Forex Trick 7

Stick by your system no matter what.

Lose the emotions and stick by the system that you initially built for yourself. Doing this will yield more well-executed trades, which in turn will build your confidence.

Forex Tips and Tricks Number 8

Look for patterns every weekend.

Study charts and extrapolate to estimate what the market condition will be the next week. This can definitely give you a head start and increase the likelihood of more successful trades.

Forex Tip 9

Keep records of every trade.

They are the best learning tools. More importantly, all the wins and losses are yours. So look back at them from time to time.

Final Thoughts

Follow these 9 tips and you’ll have a disciplined approach in your first trades in the Forex market. These are also some points a few experts tend to forget so it is best to take a look back at them.

FAQs on Useful Forex Trading Tips

What is the most important things in Forex trading?

The most important thing in Forex trading is your time. The more you spend on learning and trading, the better are chances of you performing better and having higher profits. Other than that, it is also important to know all the basics and choose a broker that suits your interests the best. Make sure that the platform that you use has trading features that are competitive and correlates with the industry’s standards.

What is the best leverage while trading?

The industry’s standard for leverage is somewhere between 200:1 and 300:1 – that’s why we advise you to not go higher than that as high leverages often come with the risk of losing a significant amount of money. Moreover, some reputable financial regulatory bodies even restrict brokers from going above predetermined ratio – that way, clients are safe from losing all their funds.

By Gerard

Gerard contributes his 10 years of experience to the Forex Trading Bonus team by reviewing different brokers, outlining regulation, and reporting on the most important news in the industry. His brief stint in the Bank of England gives him the edge over many other writers to deeply analyze a policy change and come up with a distinct result that could come from it.