Forex market is a place where currencies are traded.Anyone having some money and good patience can become a forex trader.This market involves huge risk therefore do not start trading here blindly without gaining knowledge about it. To be on the safer side market analysts recommended currency tips can be considered while trading.Traders have different motives to trade in this market like secondary source of income and more.
Following are few guidelines to become a successful forex trader
1)Set realistic goals- Before starting with forex trading it is required to decide what goals you want to accomplish. Having clear set of goals in your mind will help you to decide a better trading strategy which can help in fulfilling those goals.
2)Choose right pairs to trade- Though forex market is open 24 hours a day , 5 days a week there is some peak volumes hours which guarantees liquidity.Your success here depends on the pairs which you choose to trade with.Small traders with mini account are advised to trade in US currency against some other foreign currencies.
3)Never Procrastinate � Successful people never leave things on tomorrow which they can do today.The same path traders have to follow to succeed in forex.Try to seize every opportunity which will help in achieving your gaols.
4)Learn and practice- Understanding forex market is difficult.Having a vague knowledge about it is not sufficient.Before beginning to trade here learn about market and its related terminologies form authentic sources and practice trading using your demo account.
5)Be careful while selecting your entry and exit time frame-Traders often get confused by looking at charts of different time frames.Sometimes a weekly chart indicates a buying opportunity and at the same time intraday chart give sell signal.Synchronize your charts properly and when weekly charts gives a sell signal wait for daily chart to give the same signal.
6)Plan a wise trading strategy- Currency traders must have a clear vision.Different trading strategies like scalping, positional trade, swing can be used here.Traders should go for strategy which they are comfortable to use and also have a complete understanding of that strategy.Use your demo account to test different strategies without risking your money in the market.
7)Learn to accept small losses- Trading in forex indicates that your money is in risk. Make sure you only use that much capital which you can afford to loose and do not go beyond that limit.Keep a positive attitude and learn to accept small losses.This will help you manage risk in a better way and improve your returns.