Long term Forex trading success is not about having one miracle system or tool at your disposal. Systems are usually not as perfect as they're made out to be and you will likely find that you need to switch one system for another every one in a while.
Forex trading habits is the key to long term success and this is the subject of today's article. I want to share with you 5 major tips for Forex trading long term profits. Please, apply these in your trading as they can prove to be highly valuable for you.
1. Trade with low leverage - A lot of traders, especially new ones get dazzled by the amount of leverage that they can use to boost their Forex profits. However, leverage is a sword that cuts both ways as it also increases your potential losses dramatically. At least at the beginning, use low leverages. This will serve you much better until you get a good grip on how the market works.
2. Trade the major currency pairs - The easiest currencies to predict are those with the highest trading volume as they're the hardest to manipulate. While trading exotic pairs can be profitable, it is also more risky. Keep that in mind. Most traders should focus their efforts on the major currency pairs.
3. Test everything - Whenever you get a new system, whether you bought it, heard about it, dreamt about it last night, whatever... Always test it out first on a demo account. Take a few weeks to really give it time to show its true quality. Don't be to quick to judge whether for good or bad. This is what demo accounts are for. This is a great way to protect your account.
4. Learn, learn, learn - Always be learning new tricks, techniques, and methods. Never allow yourself to fall into the trap of being complacent and lazy. Other traders will be improving their skills. You need to do the same. This can actually be fun. Learning how to make more money is usually a pretty interesting activity to do.
5. Always use a system - Never trade based on hunches or a gut feeling. This is a road for disaster. Trade with strict guidelines for set up, entry, and exit rules. This will keep you from making silly mistakes that can cost you big.
Follow these 5 tips and you'll have a better chance of being a long term successful trader.