Trading Tips (Part 1)

To help you begin we would like to share with you a list of common mistakes that new traders tend to make and therefore you should try to avoid.
Remember, the key to becoming a successful trader is discipline and following a set of rules:

1. Accept that a part of trading is losing. Every new trader must understand that even experts lose on trades. The number one rule when making money is to make sure your profits are much larger than your losses.

2. Money management and a trading plan. Always enter a trade knowing how much you are willing to risk and how much you want to profit from the trade. This is called a risk/reward ratio. The difference between successful traders and unsuccessful ones is that the former always enters a trade with a plan and the latter doesn’t.

3. A man’s best friend- the Forex Market. Many new traders are often hesitant to open trades due to the risk and uncertainty involved in trading. Those who overcome their fears often go on to yield enormous profits.

4. Personal responsibility. Great traders accept personal responsibility for everything they do. Remember that you're the one who is pulling the trigger. Great traders know that they are responsible for all the trades they make, either good or bad.

5. Becoming greedy. When traders have an open trade that is making them profit they often forget their pre-determined target for the trade, as they are sure that the trade will continue to make them profits. Remember that the markets are dynamic and trends don’t last forever. If the price reaches your target, bank the profits or move your stop-loss to prevent a loss.

6. Trading the News. Despite what most people might think, most of the really big market moves occur around news event. Trading volume increases and the moves are normally significant allowing traders to grab quick and rapid movements. News-traders often make only one trade a day due to the large potential profits involved.

7. Never trade on wishful thinking. If you place a trade and it's not working out for you, get out! Don't compound your mistake by staying in and hoping for a reversal.

8. Psychological Factor. Emotions are the number one cause of losses. Don't let your emotions sway you, stick to your trading plan and remember to set your stop-loss.

9. "The Trend is Your Friend". When trading in the direction of the trend you're results are almost guaranteed to improve.

By following these set of rules, you will see almost immediately see an improvement in your trades.