Assuming that you already know the basic terms of this market and you started to trade, we want to tell you how to improve your skills and become a successful trader.
1. First of all, you have to have a trading strategy, to analyse every trade you make and track it until it gets to expiration date. All successful traders have a riguros strategy and they stick to the plan all times. The strategy consists in choosing a currency pair (that is right for every trader), deciding on the position you will choose and setting a target for that position. Also, you have to pay attention on the movement of the Forex market. You can do this by using Forex charts and with market analysis. For you to have a better view on the market, it’s indicated to keep a diary with information about your positions. In this way you wont make the same mistake twice.
2. Once you started to trade, you have to learn how to manage your risk and how to avoid losing money. To become a successful trader you don’t have to get emotional about gains and losses. You need to stick with your trading strategy and when it’s necessary you can use Limit Orders or Stop/Loss Orders.
3. Always you need to watch the analyses that study the price movement by using historical currency data to predict the future direction. The Technical Analysis is used by many traders.
4. Last thing, but the most import is to be aware not to became emotional when you’re trading or in your relationship with brokers. Sometimes when brokers win or lose they get to enthusiastic or to stressed and that’s the moment when they do many mistakes. You should be aware of all risk!