A couple of weeks ago we highlighted 10 forex trading gems that your fellow forex traders have shared in their interviews with Ananais.
The overwhelming response to the post as well as the advices shared on our Facebook page underscored the need for forex traders to not only read as many tips as they can, but also share whatever nugget they themselves have learned throughout their trading journeys. After all, no trader is an island, right?
With that in mind, I’ve decided to make another compilation of forex trading tips, this time from another set of forum members. Give a shoutout if you recognize some of the members! Also, feel free to share the best trading tip that you think forex newbies and pros alike could appreciate.
“Don’t think about the money. Just enjoy the process of learning and analyzing the charts and if an opportunity happens to come, take it and follow the plan. Never have the mindset that you NEED to make money. The market is not a vending machine. Patience pays.”
“Newbie traders need to realize that indicators really should not be used for entering trades all the time. Just because something says overbought, there is no reason why it can’t move to even more overbought.”
“Be realistic about expected returns. If you go in with the attitude of doubling an account every week for the rest of time you’re more likely to get frustrated and stop. I think a huge part of being successful is about finding ways to stay in the game.”
“Most people think that winning in the markets has something to do with finding the secret formula. The truth is that any common denominator among the traders I interviewed had more to do with attitude than approach.”
“Traders take subpar trades is because they feel they need to always be in the market, or convince themselves the trade is better than it really is. Many times the difference between consistently losing and consistently winning is the ability to avoid poor quality trades.”
“Learn to trade, find a system, with money management and gradually increase pip value. If you can’t leave the trade and go to sleep you are risking too much money.”
“Do not trade “miracle” systems! Do not trust on EAs provided by anyone! Just use common sense! If someone offers “never lose again” EA for only 200 bucks, it is a big red light! Why in the world one is going to give a money making machine for 200 bucks? Maybe for 200,000,000, but not for 200!”
“The most important lesson for newbies is money management / position sizing. Trading below 2% risk might be boring, but you won’t blow up your account. If a newbie blows their life savings on high-risk trades, then they are out. On the other hand, if you manage your risk, you’ll continue to have skin in the game and eventually reach your goal.”
“You deal with this in the same way a child deals with learning to ride a bike. They go out there and fall off the bike 10 times, they get a skinned knee and are all bruised up but for some reason they get back on the bike and keep going till they figure something out about how not to fall so much.
It is the same with trading, you keep going till you find out how not to fail.”
“I’m just going to say go for it. But once you start down that road it becomes a journey into self-discovery and you have to accept the lessons you learn about yourself along the way. Most things you learn you won’t like.”
What about you? What’s the best forex trading advice that you have heard or read? Do you have anything to share for fellow forex traders out there?
For those who are cited above and are reading this piece, do you have anything to add to your advice? Let us know by posting a comment or starting a discussion below!