Top 20 Forex Trading Tips You Should Know
Want to know the best trading tips to use in Forex for
2019? This article will breakdown the top 20 trading tips you should
consider using in 2019, ranging from how you should trade, the risks you
need to be aware of, how learning about trading can improve your
trading performance, and much more!
Learning how to successfully trade Forex can
be complicated for beginners. Most people want to get rich overnight,
no matter how unrealistic it may sound. The world of Forex trading can
be a little overwhelming, especially if you are new to the game, and
don't know the rules yet. You need to dip your toes in before you go any
deeper. The good news is that we've got your back! We've compiled a
list of 20 Forex tips for beginners to help you along your trading
journey in 2019. If you already have experience with Forex trading, it's
always good to remember the basics.
1. Choose Your Broker Wisely
Choosing the right broker is
half the battle. Take your time to check reviews and recommendations.
Make sure the broker you choose is trustworthy, and suits your
individual trading personality. Remember, there are lots of fake brokers
out there who will only stand in your way. Go for an authorised broker
with a licence.
2. Create Your Own Strategy
No list of currency trading tips is complete if it doesn't mention strategies.
One of the most common mistakes beginner traders make is not creating
an action plan. Figure out what you want to get out of trading. Having a
clear end goal in mind will help with your trading discipline.
3. Learn Step-by-Step
As with every new practical learning activity, trading requires you to
start with the basics, and move slowly until you understand the playing
field. Start by investing small sums of money, and keep in mind the old
adage 'slow but steady wins the race'.
4. Take Control of Your Emotions
Don't let your emotions carry you away. It can be very difficult at
times, especially after you've experienced a losing streak. But keeping a
level head will help you stay rational, so you can make competent
choices. Whenever you let your emotions get the better of you, you
expose yourself to unnecessary risks. Exercising risk management within your trading will help you to minimise the risks.
5. Stress Less
This is one Forex tip that sounds really obvious – because it really is.
But guess what? Trading under stress generally leads to irrational
decisions, and in live trading, that will cost you money. Therefore,
identify the source of your stress and try to eliminate it, or at least
limit its influence on you. Take a deep breath and focus on something
else. Every person has their own way of overcoming stress – some listen
to classical music, while others exercise. Listen to your mental health
and learn what works best for you.
6. Practice Makes Perfect
Of all the Forex tricks and tips for beginners, this is the most
important. You are unlikely to succeed at anything on your first try.
Only constant trading practice can yield consistently top results. But
you probably don't want to lose money while learning the basics, right?
Luckily for you, trading on a demo account costs nothing to set-up, and is free to use!
7. Psychology is Key
Every trader is a psychologist at heart. When you're planning your next
move, you have to analyse market movements and review your own
psychology. You need to ask yourself questions such as:
- Did I show signs of confirmation bias?
- Did I make a trade out of frustration?
- What made me choose that particular currency pair?
Mastering your psychology will protect you from many losses along the trading development path.
8. No Risk, No Success
Not even Forex trading tips and tricks can guarantee you success. When
you decide to become a trader, you should have already accepted the
possibility of failure. In case you didn't – here's a reality check. You
won't make profitable trades 100% of the time. Don't let false
advertisements get in your head, either. Instead, be realistic about
your Forex trading methods and goals.
9. Patience is a Virtue
When it comes to trading, this old saying is not just a cliché. True
success is never instantaneous. It's the result of consistent work and
planning. Many beginner traders look for an easy, fast path to profit.
Don't bother – it doesn't exist!
10. Continuous Education
Source: Market Order performed for the USDCHF currency pair - MarketWatch - MetaTrader Trading Platform
Each day you trade, there's a new lesson to be learned. Look closely at
the Forex market and keep all the tips you have learnt in mind. Start
analysing news, trends, and financial processes, and don't neglect the
Forex basics. Most importantly, study, then practise and then study some
more. Repeat this process often, and you will be well on your way to
fully understanding the markets.
Studying will require a lot of time and effort, but it will pay off in
the long run. For starters, Admiral Markets offers the opportunity for
traders to benefit from a free education centre that offers Forex tips,
as well as, a range of articles and tutorials offering tips, tricks, strategies, and more, for all kinds of trading.
11. Take Breaks
A great Forex tip to follow daily is to take time away from your
computer, especially during stressful trading sessions. When you have
several computer windows open and multiple data streams to analyse, you
can naturally feel pressured. In this case, it's better to take a break
and walk away for a while. Give yourself some time to collect your
thoughts. When you return to your desk, you'll be calmer and able to
focus better.
12. Trends are Good for You
One particularly important Forex market tip to follow is to learn about trends.
The ability to spot trends is a valuable one. While we don't recommend
jumping on the trend bandwagon every time, but outright ignoring the
trend is a recipe for disaster. Trends can show you what is coming, so
you can pro-actively adjust your trading, rather than reacting when it's
too late.
13. Seek Competitive Conditions
It's important to choose top-notch service conditions and get favourable spreads.
If you're considering trading with Admiral Markets, there are a range
of different options available. Why not read more about them in our account types section?
14. Plan in Advance
Forex trading is not a gamble – it's a strategic game. Carefully
calculate your next move before you act. You can begin formulating a
plan by asking yourself some challenging questions such as:
- Have I accounted for the possibility that I may lose?
- What's my plan B for the different types of scenarios that may arise?
To be successful at Forex trading, you have to expect the unexpected.
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15. Know the Charts
You will be trading on many different markets and will need to quickly
understand the information you analyse for each trade. There are
numerous tools available to traders that make trading easier, but
nothing is more time-efficient than charts. Charts provide you with fast
access to numerically-heavy data in the form of a simple visual, so you
don't have to scroll through it. We encourage you to learn more about
Forex charts and how to use them, by reading our related articles:
16. Don't Run out of Chances
Eagerness is good, but there is a limit to everything. If you trade too
much, you are probably harming your chances of achieving success. Why?
Because overtrading usually leads to weakened focus and careless trades.
As you develop your trading plan, indicate the maximum amount of trades you will make per day or week.
17. Greediness Leads to Risks
Greediness can make you take unnecessary risks as well. Set the maximum
loss and desired profit within your trading plan. When you hit this
level, stop and don't go for another trade. When it comes to fund
management, this is one of the most important Forex tips and tricks to
follow.
18. Use Stop-Losses
Our Forex daily tips don't just focus on general recommendations. We
also want to mention valuable tools, such as the highly rated stop-loss.
Not setting a stop-loss is basically giving you an excuse to keep a bad
position open (because you're hoping that the situation improves). But
bad situations rarely improve, and neither will your capital if you
don't wise up fast.
A correctly placed stop-loss eliminates the risk of losing all of your
money on a single bad trade. The stop-loss is especially beneficial when
you don't have the ability to close positions manually. To find out
more about stop-losses, make sure to check out the following educational
articles:
19. Analyse Your Trades
Another daily Forex tip to follow is to keep a journal of your trading
activity. This will help you monitor your performance and find patterns
within your trading. Basically, it's easier to learn from past mistakes
when they are jotted down. Keeping a journal also improves your
discipline. Be sure to write down everything and be honest about it, as
you have to be your own biggest critic.
20. Experiment
One of the essential tips for Forex trading is to flexibly adjust your
strategy. Be willing to try out new things and always aim to improve
your trading. The FX market is constantly evolving and so should you.
For instance, the MetaTrader 4 Supreme Edition (MT4SE) plugin
is free for all live and demo accounts, bringing you the most advanced
tools to improve your trading experience. With MT4SE, trading is made
handy with the use of features such as: the mini terminal, the trade
terminal, the tick chart trader, the indicator package, the trading
simulator, and the mini chart.
Final Thoughts
Don't let Forex currency trading frighten you into giving up, when it
feels like the odds are against you. Instead, try to remember that Forex
success is based on a mixture of preparation and stubbornness. As
mentioned in our Forex Trading Golden Rules article,
"FX trading takes consistent discipline to yield success". These Forex
tips and tricks will help you prepare – the rest is up to you!
Trade With Admiral Markets
If you're feeling inspired to start trading, or this article has
provided some extra insight to your existing trading knowledge, you may
be pleased to know that Admiral Markets provides the ability to trade
with Forex and CFDs on up to 80+ currencies, with the latest market
updates and technical analysis provided for FREE! Click the banner below
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This material does not contain and should not be construed as containing
investment advice, investment recommendations, an offer of or
solicitation for any transactions in financial instruments. Please note
that such trading analysis is not a reliable indicator for any current
or future performance, as circumstances may change over time. Before
making any investment decisions, you should seek advice from independent
financial advisors to ensure you understand the risks.
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