55 Free Forex Tips for successful trading 📋
Don't move your Stop Loss further away, stick to your original plan
Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further away a trader increases his chances to end up with a much bigger loss.
When holding to a losing trade too long (even if funds permit) traders as a rule are very reluctant to accept big losses, thus often continue "hoping for the best". In the meantime invested money is stuck in a trade for unknown period of time (weeks and even months) and cannot be used for opening new positions. Not working money = dead money. Also this will result in constant interest payments for holding open positions (good if that interst is paid to you, but not good when you have to pay).
Simplicity applies to your entire trading environment
Too much information will create a controversial picture of when to trade and when not to.
Evaluate risk/reward ratio before entering each trade.
How much money can you lose in this trade? How much can you gain? Now, make a decision if the trade is worth entering.
Do add more positions when a trade goes your way
Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off. Often not trading for one day can help to break a chain of consecutive losses. Trying to get revenge can often make things worse.
Let your position be open for as long as the market wishes to reward you
Move your trailing stop to protect earnings.
Don't delay or deny, take a small loss and move on
It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far — it's your money you risk. Better calculate the best spot to enter when a potential loss would be minimized. Again: respect your stop and don't move it "cherishing hopes".
Trade currency pairs in respect to their active market hours
Learn about overlapping market hours: when two markets are open and highest volume of trades is conducted.
For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.
Forex trading is a high risk investment. All materials are published for educational purposes only.