Invest wisely.
Trading in Forex, oil, Gold & Silver like any other trading needs KNOWLEDGE and EXPERIENCE. A successful trader is a trader who knows when to get in and out of any trades or position; it is very important to believe that trading Forex or any financial instrument is not a gamble!
1- Trade with money you can afford to lose : Trading leverage products are speculative and carry high risk; and can result in substantial loss, trader can loose more than he has invested initially. The more you are involved with your money the harder it is to make a clear-headed decision. Money you have earned is vital, but money you need to survive should never be traded.
2- The Trend is your friend: Never go against the trend;, this basically means that if you’re in the right direction with a strong trend you will make successful trades. When the market is bullish, go long, and if the market is bearish, go short. Getting a clear picture of the market situation is laying the groundwork for a successful trade. What is the market doing? Is it trending upwards, downwards, is it in a trading range? Is the trend strong or weak, did it begin long ago or does it look like a new trend that’s forming.
3- Plan your Trade & stick to it: Determine what time frame you are trading on. You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a rigorous money management strategy. A good plan will remove all the emotions from your trades.
4- Know when to Exit: If a trade goes against you, sell it and cut Loss. Do not hold on to a bad trade hoping that the price comes back. Before entering any position, you must know your exit point by deciding your stop loss price. Stop loss is a price where you must sell when the trade turns against you. It depends on your risk profile as of how much you should set for the stop loss.
5- Do your Homework or Don’t trade: If you’re unconvinced about a trade, if you don’t know your entry level and your exit level, just let it go and don’t trade; sometimes, watching the market and doing nothing is the best thing to do. Trade only when you have done your own research and analysis. Do not open any contract based on a tip from a good friend, chat room, or broker.
6- No Emotions: Do not let greed and fear influence your trade. Don’t forget the rule number 3. Successful traders are emotionless; they simply follow their trading plans.
7- Use Leverage Smartly: Margin trading magnifies trader profit and loss, trading at full margin capacity can make for some very large profits or losses on an account. Learn how to use the leverage by scaling your trades so that you may re-enter the market or build up a wining trade is generally wiser action. Usually do not risk more than 10% of your deposit in a single trade.
8- Keep a Trading Journal: When you enter the market and trade any instrument, write down the reasons why you have bought/sold this instrument, and your feelings at that time. Analyze and write down the mistakes you’ve made, as well as things that you’ve done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and keep improving.
9- Do Not Overtrade: Do not trade for the sake of trading; every time you enter the market is a new risk involved. Keep your number of trades to the minimum.
10- Make sure you follow the previous rules: andyou will join professional traders and money mangers.