TIPS FOR TRADING FOREX

Learn the basics of Forex trading.

Trade with the trends, rather than trying to pick tops and bottoms.

There are at least three types of markets: up trending, range bound, and down. Trade each of these markets with different trading strategies.

Use protective stops to limit losses.

Use correct stop-loss orders at all times to cut your losses and never let your losses run.

If you are new in trading, start trading with mini account for at least a year, and then analyze your good trades and your bad ones.

After getting better knowledge about trades you can open a large account.

Be more objective and less emotional.

Use money management principles.

Calculate the risk/reward ratio before placing a trade.

Don't trade spontaneously; have a plan.

Have specific goals and objectives.

Five steps to build a trading system:
Start with a concept
Turn it into a set of objective rules
Check it out on the charts
Formally test it with a demo account
Evaluate the results

Trading systems that work in an up market may not work in a down market. So plan well before you trade.

Risk Control
Never risk more than 3-4 percent of your capital.
Fix your exit point before you get into a trade.

If you lose a certain predetermined amount of your starting capital, stop trading, analyze your loss and decide how to overcome it and start trading when you feel confident in you.

Don’t think you will earn lot in first day of trading.

Have two accounts. One real account and the other a demo account. Learning doesn't stop when trading real dollars begins. Keep the demo account and use it to test alternative trades, alternative stops, etc.
Patience is very important not only in waiting for the right trades, but also in staying with trades that are working.

Don't be too greedy.

Analyze your losses and learn from your losses.

Only people who can survive in forex trading are those who stay long for those big moves are often successful.