One aspect of Forex trading is that you should leave nothing to chance! If there is just one trading environment that is always guaranteed to be very volatile it is the Forex trading environment, and anyone thinking of trading Forex online for the very first time need to have in place a solid yet very well thought out trading strategy.
It is always advisable to get a full and deep understanding of just what is involved when you start trading Forex online, and throughout our website we have complete trading guides which will allow you to learn every aspect of Forex trading.
So please after reading this guide if you are new to Forex trading have a good look around to gain a much better understanding of the risks involved and the ways you are able to trade Forex online.
Below is a step by step guide that is going to allow you to hopefully put into place a straight forward and very easy to follow trading strategy, have a look through this guide and then always be prepared to put it in place when you start trading online.
Choosing a Forex Brokers – You first will need to actually find an online Forex Broker that is going to give you a seamless way of placing Forex trades online. We have several licenced and regulated Brokers listed on our website and each site will offer you a comprehensive guide to using their respective trading platforms and will also allow you to claim a sign up bonus when you first make an initial deposit.
The value of the bonuses can and do vary, but to maximize your trading budget always be prepared to accept those bonuses as they are usually a one off promotion and should allow you to lock in added value in your first initial trading sessions.
Research Your Trades in Advance – It is often said that fans of horse racing will stick a pin in the list of runners in the hope the horse they select wins that race! However, trading Forex is a completely different environment and you will have to put in often many hours researching the trades you will be trading on any single trading session. Keep track of things such as the latest news stories and Economic Calendars as these are usually going to massively affect the value of any currency in one way or another.
Staking Your Trades – Your trading budget is going to dictate the value of your trades. Never place more than 5 to 10 percent of your available Forex trading budget on any single trade, the higher the amount of your budget you place on any trade the more risk that is involved.
Pre Planned Loss Limits – Always start you trading session with an amount of cash in your mind that you are prepared to lose on any given session. You will of course be hoping to make winning trades, but when things are not going as planned then by having a pre planned loss limit, as soon as you reach that level of loss you will know that is the time to stop trading and cut your losses for that session.
The lower you set your pre planned loss limit at the better, some traders will risk no more than 30 to 40 percent of their trading budget on any single trading session, but it is of course up to you what figure you arrive at. Never set this limit to high for throwing caution to the wind will sometimes result in you losing your entire trading budget!
Locking in a Profit – You always have to know well in advance of any trading session just what you are looking to achieve from that session. Many of the world’s most successful Forex Traders have in mind an amount of cash that they are looking to make from each session and as soon as they reach that goal they stop trading.
High risk traders can often set their sights quite high and will aim to increase their initial trading balance by up to 50% in value, and once reached the trader will stop trading. You should always set your own profit goal but the lower it is the more likely you are of reaching it. When you have made your winning profit goal stop trading!