14 Important Forex Trading Tips

1 – Don’t rush into it! This is the biggest tip I could give you, research, demo and learn about what works and when to do it. Timing and planning is everything.2- When you are researching, remember stats don’t lie! If a currency is increasing then invest, decreasing then don’t invest simple.3 – Forex trading is not gambling, it is investment, do not gamble with your money invest it.4 – Trade what you can, do not trade what you cannot afford.5 – Don’t be greedy, it can come back to bite you!6 – Time frame is important; whether it is 1 hour or 1 year, decide on your time scale.7 – Only invest if you are 100% confident, if you feel there is any negatives then stay away, you don’t lose anything.8 – Don’t hope, the market does not listen to you.9 – Long time = more profitable, this is true but this does not mean that short term forex trading does not work. Don’t be greedy.9 – Trade in active market hours, trade when both markets are open and active this will increase your chance of short term gain.10 – Choose your time to trade correctly, do not trade on Mondays, Fridays and weekends, this is due to markets being less active. I personally prefer to invest on Tuesdays, many people suggest mid week investments to be most profitable.11- Fibonacci levels, these are important in terms of how to exit trades.12 – Use experts, if you are thinking of getting involved with forex trading then get some inside information and use the experts of the market to base your decisions on, as that is what they are good at.13 – Get your stats, stats are important, keep day stats, weekly, monthly and even yearly, this will show you the diversity of the market and the way in which trends appear, of which you can capitalise in the future.14 – Allow listening to experts is important, the magic button or magical system does not exist so do not fall into the hype about this.Finally and my favourite tip I always give people when they are thinking about investing in forex is the risk vs reward ratio. This is one of the, if not the most important thing to take into account when trading forex. There are a few questions you need to ask yourself: Mainly: How much can you lose? How much can you make? On this information make your decision. If it is high risk with low reward then obvious stay away, If you believe that reward outweighs the risk then invest.