11 Forex Trading Tips from Your Fellow Traders

In most of the blog posts I write, I usually pull from my expertise and personal experiences to help both budding and experienced traders in their trading. But this time, I’d like to do something different.

Ananais, one of our lovely moderators, has been interviewing some of the most respected and experienced traders in the BabyPips.com community. I thought I’d go through their answers in hopes of learning a thing or two from them. After all, the learning never stops here at BabyPips.com!

After a quick read through, I was extremely impressed at the quality of insight they gave on forex trading. I have compiled some of the best ones below. Take a look:

I have several pieces of fairly good advice, but if I can choose only one this would be it: Learning to trade is not a sprint, it’s a multi-year marathon. Don’t give up.

Learn about volume spread analysis – VSA. It teaches you a lot about price action, support & resistance, and lends itself to many strategies & disciplines.

I would urge newbies to learn the power of COMPOUNDING modest, but consistent, daily profits — and, then, letting those profits grow exponentially to build wealth.

There are three elements here:

1) modest profits: don’t take huge risks swinging for the fences;
2) consistent profits : this means accurately following a trading method which has a high win-ratio; and
3) compound profits : let your profits accumulate in your account; and, as your account grows, increase the size of your trades in proportion to the size of your account.

There are no shortcuts if a person is really willing to do whatever it takes to make it happen. They can become the trader of their dreams. That’s what I’m shooting for.

Why not? There’s no excuse not to become a great trader so many free websites like Babypips.com with excellent educational threads for traders to take advantage of.

Recognize that learning a trading setup is not the end of the road, it is just the very start. You must learn how to manage that position with proper risk, with a clear target, and with the trust that you must trade it every time for success.

My one piece of advice I have for newbie traders is to find out who you are as a trader! There is no quicker path to losses and frustration than to trade who you are NOT. Discover who you are as a trader and trade YOU.

Plan your trades WELL before they happen, meaning it should have an entry, stop-loss and take-profit. Make sure you stick to your plan through thick and thin, meaning of course, win or lose…stick to the plan!

Your entry can be S&R levels, SMAs or EMAs, bounces or breach, Fibonacci levels, Pivot Levels, anything for that matter, but your entry is a prerequisite to knowing your stop-loss and profit target.

Without knowing these 3 key elements, there would be no guaranteed success, but of course, one could get lucky a few times, but if you want to stay in this business for the long haul, I would strongly advise to know these points before entering a trade.

All of the above means DO NOT ENTER A TRADE ON IMPULSE, OR BASED ON YOUR HUNCH, OR GUT FEELING THAT IT WILL GO YOUR WAY.

My advice to newbies: keep it small. Too many newbies start with way too much money. I say keep your account size small while you learn.

Money management. Don’t risk too much of your account at once. That’s the fast lane to burning out. Risking less means gaining more experience and becoming more profitable.

Experience with trading on a live account is no less important than acquiring knowledge of technical indicators and no less important than knowing what moves the markets fundamentally. So, giving yourself enough margin for error means that the margin call will be further away.

Write out your trading system. Whether on a word document or excel sheet, write out your rules, trade requirements, goals, and details of your specific trades. Additionally, have this document open at all times.

You need to have a plan and follow it consistently. I believe that having it in your face the whole time helps you not sneak in that “different” trade.

Always respect your risk & never compromise your defensive circuit-breakers. They’re there for a reason & designed to check you out of your position if changing circumstances invalidate the trade. I’ve been guilty of falling short on that one………….but only once!

Never be afraid to admit you’re wrong. As much as you think you know, the market always knows more.

Don’t get lazy with your research. There’s no room for shortcuts when you’re dealing with money, particularly someone else’s. And always double check your order tickets before confirming the bet.

What about you? Do you have any forex trading tips you’d like to share with your fellow traders? Post them in a comment below and let’s start a discussion, people!

Maybe by working together, we can achieve the ultimate goal of becoming consistently profitable traders!

  • Andrew Wheeler

    Great write up guys. Although I disagree with some of the comments that $2000 is a good starting deposit, really it should be a few hundred to get a feel for the execution and the broker.

  • Godwin

    Sebastian S i also suggest that you start your live account trading with money you can afford to lose without it affecting your personal and family life.Assume you have $2000 that you have planned to start forex with, my advice is you divide it into two.Start trading with  $1000 first and see your progress. If u re successful with the initial start up capital then and then you can add the second capital to boost your trade positions. The reason for leaving behind the $1000 is to have back up should you loose the initial fund, if this should happen during the cause of your trading i believe you will be taking note of your mistake and vow not to repeat it again and that’s when your life line of $1000 will become handy for you. 
        Welcome to the world of PIPS

    • Frank

      I agree with Godwin, $2000 is a good start if you that doesn’t affect your budget and your family life.  You will definitely see the difference between demo and real account it is worlds apart.  As a friendly advice, with $2000 you will be able only to put 2 positions of 10 pips or 10,000.  Follow the advice that everyone gives here, don’t put your account to much at risk.  Happy hunting

  • Pepe

    I have one: Trade with the Trend!

  • alwjmonster

    Sebastian S i would suggest you starts with small amount, besides when you switched from demo into live.. you will feel much more emotional, you might be tension for the 1st time when market goes against you.. so i suggest you should go “live” sooo you can early cope with emotional problem.. and always tell yourself how much you willing to lose when go set your stop loss, that make it easier for you. but seriously go “live”.

    • sebastian s

      Thanks for your answer. My wife says she has no idea how emotional I will be when I go live. I take the demo like it is my money:-)

      • Ow Forex

        I would say start trading money ASAP, with small amounts on each trade.  Only when you start losing/winning money will you realise if that strategy is right for you.  Trading phantom money makes trading seem much easier than it really is.

        I use OANDA and I personally think they are very good.

  • wirabayu06

    “My one piece of advice I have for newbie traders is to find out
    who you are as a trader! There is no quicker path to losses and
    frustration than to trade who you are NOT. Discover who you are as a trader and trade YOU.”

    - Lydia Idem Finkley

    As a “baby”, this word hit right on target to my head…
    Thanks Dr. Pipslow and Lydia Idem Finkley

  • sebastian s

    I am a “newbie” and trading on a demo account for 6 month now. I have read lots of different opinions on how to start trading with “real” money.

    I have some question: 1. Is it a mistake to trade to long on a demo account?2. If I start  “real” trading should I start with 500 or rather 50000?3. I consider myself a swing trader. Is Oanda a good platform to start with?

    I want to say thank you to everybody who is responsable for the babypips.com content. This webpage is just great!!!

  • Ananais

    Awesome. Since I am mentioned on this blog, does this mean I am now popular? Ha. Thanks again Dr. Pipslow! :)

  • sebastian s

    I am a “newbie” and trading on a demo account for 6 month now. I have read lots of different opinions on how to start trading with “real” money.
    I have some question: 
    1. Is it a mistake to trade to long on a demo account?
    2. If I start  “real” trading should I start with 500 or rather 50000?
    3. I consider myself a swing trader. Is Oanda a good platform to start with?
    I want to say thank you to everybody who is responsible for the babypips.com content. This web page is just great!!!

  • Sunder

    Thank’s for your information. It’s really nice and informative.

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