When trading forex online there are a lot to think about. But most importantly, you need to figure out how to earn money by strategically and logical decisions. Here are a few advice:
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Never use too high leverage: Forex leverage is a powerful tool, often allowing 200:1 leverage. But it can backfire if you use it without common sense. Make sure to not use to high margin. Out advice is maximum 10:1 at a single time.
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Let your wins grow: One of the most common mistake among forex traders are to take home the profits to quick and don’t let the profitable trades run. Always set a risk-reward before entering any trades.
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Trading on impulse: Never trade on pure ‘feeling’. It will never work in the long run.
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Focus on one or two currency pairs: Many brokers, such as Forex Yard or FXCM, offering over 40 currency pairs. The options are endless, and so are the risk. Make sure to focus on one or two currency pairs, this will make you able to focus and making better decisions.
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Never move your stop-loss: Once set-up, the stop-loss should never be moved. Many investors still move their stop-loss, moving away from their initial strategy and end up losing a lot of money. Don’t do the same mistake.