7 Tips for Successful Forex Trading64

1. 
   1. Real trading is built on knowledge, not luck
   Trading without knowledge or on "hunches" is gambling, plain and simple. Gamble on the horses, not with your forex account.
   2. Use a demo account to practice trading before using real money
   To do this, use your broker's "demo account" facilities. With a demo account you can trade as if it were real, making and losing money just as in the real forex world. No money actually enters into the picture, which means you can make all the mistakes you need to in order to learn. My advice to newbies: trade on a demo account for at least three months before you go live with real money. Not only that, but analyze your demo wins and losses carefully, learn from your mistakes so that you won't repeat them with real cash.
   3. Trade in the time frame that suits your temperament and experience level
   Short time frames like 15 minutes makes for a lot of excitement and many traders love that. But that's not for everybody, and particularly novice forex traders are well advised to look at longer time frames that provide more opportunity for analysis before making trading decisions.
   4. Go with the trend, especially when you are just starting out
   With experience, you might want to experiment by bucking the trend, and you might be successful. But beware, this way of trading is for the experienced, and not for the fainthearted even then. Learn more about trends here.
   5. Study the charts of periods longer than your chosen trading time frame
   This gives you a bigger picture and gives you a better chance to see and accurately identify trends. For example, if you are trading in an hourly time frame, you want to look at daily and weekly price movements for a more realistic picture. The forex market is subject to occasional blips that can trip you up if you're not ready for them. Watching how things are unfolding in longer time frames will help you see these glitches coming and take appropriate action.
   6. Manage your money conservatively
   In forex trading, that means never risking more than a small percentage of your total trading account, such as 2-3%. Understand that you WILL lose on many trades, that's just the nature of forex trading. Each time you lose, you need to make twice that much on the next trade just to stay even! Keep your risk low so that a few losses in a row won't wipe out your account.
   7. Get your emotions out of the picture
   Many new forex traders, and even more experienced ones, have been wiped out because they let their emotions influence their trades. Make your trades based on analysis, both technical and fundamental, not on panic or elation. Never trade on a hunch (see tip #1).
   While it can be exciting, the forex market can be a scary place. I recommend ongoing education in all aspects for as long as you are trading forex. One great place to start is with this free 7-part mini-coursehttp:/ /hubpages.com/hub/7-Tips-for-Successful-Forex-Trading