1. START GRADUALLY
There's no sure thing or confidence in Trading as the market may change suddenly, so you start gradually, don't open many positions but weigh each of them carefully.
2. STOP - LOSS ORDER & TAKE PROFIT
Common mistake many Trader make often is to limit their loss, don't forget to use stop loss on any positions you opened and don't make it too tight or close to avoid stepping out of the game very soon. With the stop-loss order, you will be able to control the situation if the market rates changes unexpectedly.
3. STICK TO THE PLAN/STRATEGY
A good Forex Trader always have their own plan when starting their Trading and the best make an effort to hold on to it. Some prefers long-term strategies while others may prefers daily transaction. You should just keep it steady. Try to write your own plan on the paper and follows it systematically. Draft each of the successful strategy and failed ones on each transaction to analyze why you chose or use a strategy later.
4. RISK MANAGEMENT
This is the best part, to protect your profits, trading small lots. Specialist advise against risking more than 5% of your free capital when you aren't completely confident. This way you can protect your hard earned money and your profits.
5. DON'T STOP THE PROFITS
Have you ever close trade out of fear?, or hold on to trade may be it will turn around?. A common mistake beginners make is closing the open positions too soon, thus not taking the advantage of the full profits. The fact is trends last longer than they might seem at first.
6. USE OF MULTIPLE TIMEFRAMES
In other to determine the perfect timing to enter a trade or step out, you have to differentiate the time frames of analysis; weekly charts are used to observe trends, hourly and minute charts are used to determine the perfect timing to open and close positions.
7. ALWAYS FOLLOW THE TREND
Always try to follow the trend, transactions against a trend usually results in LOSS. Sometimes you need to wait for an evident trend and then make your move.
8. TRENDS HAVE MOMENTUM
Many beginners often don't know when a trend starts and don't use trends in their favor. Trends have momentum, although a momentum strategy requires a solid exit to protect your PROFITS.
9. IF IN DOUBT FOLLOW THE PROFESSIONALS
Many traders always got scared of not to loose. If you are not confident about your decisions, choose a platform that offers copy Trading feature to their investors.That is, let's you follow the experts and copy their transaction, they gain you gain too.
10. CLOSE THE UNSUCCESSFUL
Don't make mistake of waiting so long for the unsuccessful positions to turn around as this may destroy your Trading account further. Experience shows that it's best to close them early and move on to others
