Eleven Tips For Safe Forex Trading

Forex trading is a hard environment. These forex tips will suit to the beginner, but can also be useful for the expert trader.

• The first rule is always: save your capital.
• Never invest money you will use for your primary needs.
• Think twice before placing your stop loss order: if you choose a good risk/potential profit relationship, profits will take care of themselves.
• If you are a beginner, use a leverage from two to five, if you are an expert, you can go for a ten to fifteen, a leverage above twenty should be used only in exceptional cases.
• Cut the losses and let profits run.
• If you are in a winning trade, use trailing stops orders, as they will follow the trend. Just make sure you do not place them to close to one another.
• Do not be let the environment around you influence you. If you have carefully planned your strategy in advance, stick to it, the others could be wrong.
• If you have gone through a series of losses, stop trading and rethink your approach to forex trading. Do not use the same strategy, as there is obviously something not working with it.
• It does not matter how upset you are after a loss: doubling the investment to make up for it is the safest way to lose again and reach the 300% loss.
• Forex market can be very profitable but it is also a very hard, unforgiving environment.
• A successful forex trading is not about betting, it is about building, one brick at the time. There are no shortcuts, it does not matter if you do it as a hobby or professionally, it is something that takes time and dedication.

Andrea has been trading with forex for years and has many forex tips to share. Also check out this review of ACM forex, one of the most important forex brokerage services.