Know When To Exit a Trade

If you had to choose which forex trading tips you should remember, this one would probably be at the top of the list. Indeed, whether you are winning or losing, you must know when to let go. Don't maintain a losing position in the hope of a trend reversal. This kind of hope-based strategy may lead to greater losses. As for winning trades, although you should let profits grow, you should also know when to close your position to avoid trend reversals.

Don't Be Too Greedy, But Don't Play It Too Safe Either

On the one hand, you shouldn't be overly ambitious with your profit objectives. You must always stay realistic if you don't want to lose it all. But on the other hand, you can't be too cautious otherwise your profits won't be worthwhile. Give your position a good chance to make a fair profit by using sensible stop-loss and take-profit levels. Learning how to strike a balance between those two opposite tendencies will help boost your profit.

Trade With Risk Capital Only

You shouldn't invest money that you can't afford to lose. Forex trading is a high-risk investment and as such, it can lead to substantial losses and is not meant for every investor. Risk capital is the amount of capital that you dedicate to speculative investments and that you can afford to lose. Do not risk anything more than that. This is our first tip, and it is probably the most important of forex trading tips.

Practice Rational - Not Emotional - Trading

 Your trading decisions must be guided by reason, not emotion. When trading - remember this last forex tip - gut feelings should be left aside. Once fear, hope or anger gets involved in your decision process, it's hard to think objectively and rationally. By providing you with a wide array of trading tools including charts, indicators and daily reports, Finotec gives you the means to make carefully thought-out decisions. Forex trading is not a game of chance: the more skills and knowledge you acquire, the better chance of succeeding.