Jumping into Forex trading with both feet? Here are five must-know tips on forex trading and mini forex to help you stay afloat in the foreign exchange currency market.
Know your forex trading market.
Educate yourself about the currencies that you trade. The more you know about the country whose currency you're trading in the forex market, the more accurate you'll be able to predict which way the money will move.
Pick a forex trading system – and stick with it.
Savvy forex traders will tell you that system is everything. Forex trading by system lets you automate your trades based on history, following the traditional peaks and valleys. Set up a system and live with it to make the most of your forex trading.
Practice makes perfect – but it's not the real world.
Practice forex trading accounts are great for learning how a particular trading account works – but they're not the real world. Many experienced traders recommend starting off with a mini forex account to minimize your losses while you get acclimated.
Keep your eye on the margin.
Margin trading is a great way to lose a lot of money quickly. Stay away from forex margin trading until you're sure you know what you're doing.
The only win that counts in forex trading is the bottom line.
In forex trading, the bottom line is how much money you made at the end of the day. Don't count won or lost trades – only dollars and cents.