1. Get the most from Demo accounts
Demo account is a free currency trading account offered by many firms that you can use for practice. Experience is a key factor for success in currency trading. If you are a new trader then this is golden opportunity for you to feel the forex market without risking your hard earned cash. Your loss will be virtual but the lessons learned will be real.
2. Trend Is your friend
Keep eye on market and observe the trend. Trend is a key factor that can help you to maximize your profits.
Don’t sell a currency when it’s rising
Don’t buy when trend is down.
3. Control the emotions
If you want to become a successful forex trader then you must learn to control your emotions. Do not try to revenge the previous loss in current trade. There are many ups and downs in forex market. You must learn to survive in unfavorable situations.
4. Do not trade in case of uncertainty
If there comes a condition where you are uncertain about the market then it’s better to stay out of it. It’s better to save your capital instead of unnecessarily risking it.
5. Do not trade on Mondays and Friday
We know that fx market opens 24x7 hrs. But still you should not trade on Mondays when market recently awakens and Fridays when a large numbers of trade closes.
6. Make proper use of leverage
Leverage can be quite useful and can turns out to be most lethal weapon in a trader’s arsenal but only and only when it is used carefully and cautiously. But for an inexperienced trader high leverage can turns out to be dangerous too.
7. No secrets to become a successful trader
There are no special secrets to become a successful trader. You just have to work hard and learn from your mistakes. Experience plays an important role in currency trading. It is good to get training from experience traders to learn the basics.
8. Make use of protective stops
Protective stops can limit potential loss to desired amount. Traders sometimes continue to trade in spite of loss, "hoping for the best”. Stop loss helps you to control the emotions.
9. Predetermine risk/reward ratio before starting the trade
Before entering into trade try to determine risk/reward ratio and come to conclusion on the basis of this ratio. Determine the probability of loss and profit. How much money can you lose in this trade? How much can you gain?
10. Taking Help of Managed forex accounts
Well if you are inexperienced and want to take benefits of high returning fx market then managed accounts can be a good option. In managed account an experienced trader do trading for you and charges a fixed percentage of profit as his fees.