by Forex Trader Gregor Anton - http://www.ForexCurrencyDayTrader.com
Last week I had some good trades and some bad. You will have losses. How you manage your money and minimize risk, and minimize losses will play a key role in becoming a successful Forex Trader.
Rather than looking at how to get the most pips and make successful trades, lets focus on minimizing your Forex Trading Losses:
* No Trade = Good Trade - It's tempting to jump in and make a trade. Be patient. Create a demo account and practice. Only trade when you're 100% sure your trading system works.
* Don't Babysit Your Trade - Follow your trading plan, system, and strategy. Know your entry and exit condition. Don't stress yourself out and watch your pips fluctuate or worse, go into negative red numbers. Follow your plan, set your stop losses and take profits. Walk away or do something else. Let your trading system and plan take care of the trade.
* Don't Get Greedy - No matter how many pips and profit you make, you'll always want to make more. Sometimes less is more and that extra 10 pips can cost you the 200 you just made earlier. Greed is an emotion and you want to keep your cool and stay focused on practical trading. Emotional and impulse Trading is Gambling.
* Save Your Emotions - Relax and you'll trade better. Even with the best of trading plans, systems, and strategies. And in my experience, especially with Forex Robots, Signals, and Alerts. Let your profits run, cut your losses, and be sure to stick to your system and strategy. Save the emotions for when you celebrate a good week!
* Measure Profit in Pips - I find focusing on pips rather than profit in dollars keeps you focused on your trading goals. The right money management and risk reward ratio is key too and surprise surprise will usually align nicely with your comfort zone.
* The Trend is Your Fairweather Friend - It will change and according to some, the Forex Market is Trending only 20% of the time. Don't get me wrong, identifying the trend or lack of a trend, is important, you want to do so across multiple time frames. But don't rely just on the trend, use indicators, trendlines, and pivot points.
* Set Goals - Know exactly how many pips you are targeting. How many good or bad trades you're going to stop at. Everyone has bad days... I go for a walk, eat some Ritter Sport chocolate, grab a Mocha at Waves Coffee, or change my scenery in some way that gets me away from Forex. Bottom line, have a plan! ...and follow it.
* Set Conditions - When are you going to enter a trade? Exit a Trade? When do you take profit or take a loss? What hours, sessions, and currency pairs are you trading?
* Economic Calendar - News can really impact the Forex market. This "noise" can really impact your open trades. You need to stay on top of Forex News by checking the Economic Calendar at least daily and determine if you're going to trade around news times or not.
* Manage Your Money - Only Risk 5% at most. Combined. If you have multiple trades, the sum should be 5% or less. Any more and you're asking for a heap of trouble and the word gambling comes to mind. Be very careful. The more you risk, the sooner you can go broke and the longer it takes you to rebuild your account.
* Know Your Risk / Reward - How many pips are you willing to risk to make your pips? Are you going to risk 100 pips to make 10? Clearly you want to risk less than you are bound to make.
* Take a Forex Trading Course - Education is key. Education can be expensive, the alternative is far more costly. That one tip or strategy you learn can be the distinction that'll change everything. There are many great trading courses out there, and there are many scams and hack-job courses too. Visit my site to find out who I swear by.
* Practice Practice Practice - Open a demo account, thoroughly test your system, plan, and strategy. And please don't change it every day or hour and stop looking for that holy grail. Your demo account balance after 1 month of trading will give you a good indicator of how well you've done.
* Walking Away is the most important part of your day - We've all been there, a great trading day, week, or hour. x amount of successful trades, you've met your target and you're excited. Do yourself a favour... Walk away. The markets are quick to turn and your profits can quickly disappear. Just walk away and continue on another day! - 29969
Last week I had some good trades and some bad. You will have losses. How you manage your money and minimize risk, and minimize losses will play a key role in becoming a successful Forex Trader.
Rather than looking at how to get the most pips and make successful trades, lets focus on minimizing your Forex Trading Losses:
* No Trade = Good Trade - It's tempting to jump in and make a trade. Be patient. Create a demo account and practice. Only trade when you're 100% sure your trading system works.
* Don't Babysit Your Trade - Follow your trading plan, system, and strategy. Know your entry and exit condition. Don't stress yourself out and watch your pips fluctuate or worse, go into negative red numbers. Follow your plan, set your stop losses and take profits. Walk away or do something else. Let your trading system and plan take care of the trade.
* Don't Get Greedy - No matter how many pips and profit you make, you'll always want to make more. Sometimes less is more and that extra 10 pips can cost you the 200 you just made earlier. Greed is an emotion and you want to keep your cool and stay focused on practical trading. Emotional and impulse Trading is Gambling.
* Save Your Emotions - Relax and you'll trade better. Even with the best of trading plans, systems, and strategies. And in my experience, especially with Forex Robots, Signals, and Alerts. Let your profits run, cut your losses, and be sure to stick to your system and strategy. Save the emotions for when you celebrate a good week!
* Measure Profit in Pips - I find focusing on pips rather than profit in dollars keeps you focused on your trading goals. The right money management and risk reward ratio is key too and surprise surprise will usually align nicely with your comfort zone.
* The Trend is Your Fairweather Friend - It will change and according to some, the Forex Market is Trending only 20% of the time. Don't get me wrong, identifying the trend or lack of a trend, is important, you want to do so across multiple time frames. But don't rely just on the trend, use indicators, trendlines, and pivot points.
* Set Goals - Know exactly how many pips you are targeting. How many good or bad trades you're going to stop at. Everyone has bad days... I go for a walk, eat some Ritter Sport chocolate, grab a Mocha at Waves Coffee, or change my scenery in some way that gets me away from Forex. Bottom line, have a plan! ...and follow it.
* Set Conditions - When are you going to enter a trade? Exit a Trade? When do you take profit or take a loss? What hours, sessions, and currency pairs are you trading?
* Economic Calendar - News can really impact the Forex market. This "noise" can really impact your open trades. You need to stay on top of Forex News by checking the Economic Calendar at least daily and determine if you're going to trade around news times or not.
* Manage Your Money - Only Risk 5% at most. Combined. If you have multiple trades, the sum should be 5% or less. Any more and you're asking for a heap of trouble and the word gambling comes to mind. Be very careful. The more you risk, the sooner you can go broke and the longer it takes you to rebuild your account.
* Know Your Risk / Reward - How many pips are you willing to risk to make your pips? Are you going to risk 100 pips to make 10? Clearly you want to risk less than you are bound to make.
* Take a Forex Trading Course - Education is key. Education can be expensive, the alternative is far more costly. That one tip or strategy you learn can be the distinction that'll change everything. There are many great trading courses out there, and there are many scams and hack-job courses too. Visit my site to find out who I swear by.
* Practice Practice Practice - Open a demo account, thoroughly test your system, plan, and strategy. And please don't change it every day or hour and stop looking for that holy grail. Your demo account balance after 1 month of trading will give you a good indicator of how well you've done.
* Walking Away is the most important part of your day - We've all been there, a great trading day, week, or hour. x amount of successful trades, you've met your target and you're excited. Do yourself a favour... Walk away. The markets are quick to turn and your profits can quickly disappear. Just walk away and continue on another day! - 29969
About the Author:
Looking to Minimize your Forex Trading Losses, then visit www.forexcurrencydaytrader.com to find the best advice on Forex Online Trading.
