Emotion should not be part of your calculations in forex trading. This reduces your risk and keeps you from making poor impulsive decisions. Emotions are always a factor but you should go into trading with a clear head.
Choose a single currency pair and spend time studying it. You can't expect to know about all the different types of pairings because you will be spending lots of time learning instead of actually trading. Take the time to read up about the pairs that you have chosen. Focus on one area, learn everything you can, and then start slowly.
Avoid trading in a light market if you have just started forex trading. Thin markets are those that lack much public interest.
You'll end up losing more than you normally would if you trade stop loss points before they get triggered. You'll decrease your risks and increase your gains by adhering to a strict plan.
Take time to become familiar enough with the market to do your own calculations, and make your own decisions. The only way to become successful at any market is to form your own opinions and establish your own methods.
Use everything to your advantage in the Forex market, including the study of daily and four-hour charts. Using charts can help you to avoid costly, spur of the moment mistakes. These short term charts can vary so much that it is hard to see any trends. The longer cycles may reflect greater stability and predictability so avoid the short, more stressful ones.
Do not let your emotions get in your way. Forex trading requires that you stay patient and rational, or you could make poor decisions that will cost you dearly.
Build your own strategy after you understand how the market works. Making decisions independently is, the only way to find more pull ahead of the pack and become successful.
Don't find yourself overextended because you've gotten involved in more markets than you can handle. Trading in too many markets can be confusing, even irritating. You'll be more confident if you focus on major currency pairs, where you have a better chance of succeeding.
Decide what time frames you would like to trade within when you start out on forex. For example, a quick trade would be based on the fifteen and sixty minute charts and exited within just a few hours. Using the short duration charts of less than 10 minutes is the technique scalpers use to exit positions within a few minutes.
The forex market is used by some to supplement their income. Others may use it as their sole means of making money. It all depends on just how successful you can be as a trader. The key starting point is learning the basics of profitable trading.