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| Take Time to Learn |
| The best tip we can offer new traders is to take time to learn about the nature of Forex and the trading platforms available to you. We highly recommend that all traders view our online videos. Each video is about an hour long and contains extremely valuable information. Set aside some time each day to view a video. Click here to watch the Forex Education Videos |
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| Watch Out For Market News |
| Price has been known to jump hundreds of pips in just seconds after the release of news. We recommend that all traders keep an eye on the economic calendar, and avoid trading around high impact news events. Traders can view all upcoming economic events on our Forex Calendar. Click here to view our Forex Calendar |
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| Don’t Misuse Leverage |
| Some first-time Forex traders focus only on the positive effects of leverage without fully realizing its repercussions. When you use high leverage, you’re putting the funds in your account at high risk. Leverage may intensify your profits, but it also intensifies your losses. Traders should avoid using high leverage whenever possible. When using leverage, risk only roughly 2% - 5% of your funds. For example, if you have an account balance of $2,000, you will have enough buying power to purchase 100,000 units of currency. With this amount, we would recommend that you enter a position using about 5,000 units of currency. |
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| Use Market Signals |
| Market Signals compare past trends with current ones to estimate future price action. Traders should analyze a variety of different market signal providers to see which provider offers the best analysis for each given pair or time-frame. You might find that one program can offer you great weekly trends, while a different program can offer you great signals on the 10 minute chart. It's up to you to figure out how the best way to utilize the market signal software. Forex Club offers you unlimited signals from Autochartist plus great signals from Trading Central. You can receive a free trial period of 15 signals a day for 15 days from Autochartist. Use these signals and learn from them! Click here for information about our Forex Market Signals |
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| Be Aware of SWAPs |
| At the end of every trading day, all positions are closed and then reopened the following day. After a position is closed, a “cost of carry” interest is charged. Brokers automatically charge this fee at 21:00 GMT. Be aware that on Wednesday interest rates are tripled. You can find out more about SWAP charges by scrolling down this page. |
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| Don’t Start With All Your Money |
| In the Forex market, how much money you put into your account doesn’t correlate with how well you do. If you risk a large amount, you can profit greatly or make massive losses. Be smart when deciding what amount you want to trade and don’t get too greedy. We recommend starting with a small amount of capital so that you can experience and understand the emotions that may affect you during trading. |
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| Have Clear Entry and Exit Points |
| When you first start trading Forex, you may not know too much about chart patterns or indicators. This is fine; everyone has to start somewhere. As you mature as a trader, you will learn more about the market's nature and trading techniques. At Forex Club, we offer great educational videos and reading materials to help you develop a sound trading system. After you develop a solid trading plan, make sure you have a clear entry point and exit point for every trade you make. |
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| Learn an Indicator |
| Indicators were created to give traders better insights about the current market. As a beginner trader, the idea of using an indicator may seem very difficult, but this isn’t true -- don’t be afraid to learn how to apply indicators to your trading system. We offer education materials that will teach you how to apply and read indicators. Forex Indicator Lesson Essential Indicators Video Lesson |
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| Orders | ||||||||
Before you enter a trade, have a realistic idea of where you’d like to place your stop loss and take profit orders. To do this, you should have a general idea of how much money you can make per pip. Here’s a chart to help you out:
This chart applies to all currency pairs that contain USD as the quote currency. We highly recommend that you trade with different amounts on your demo account to fully understand the opportunities available and the amount of money that you will win or lose, according to where you place your orders. | ||||||||
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| Trade with the Trend |
| When trading Forex, a trader should always trade with the trend. When in a bullish market, go LONG or stay neutral. When in a bearish market, go SHORT or stay neutral. Also, don’t be afraid to buy a new high or sell a new low.  |
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| Realize the Risk |
 Most professional traders prefer to open a position that is 2% to 5% of their trading balance. If you have an account of $5,000, your safest bet would be to trade 2% of that, or $100. With leverage, that equates to having a buying power of 5,000 units of currency. If you’re not happy with the results you’ll get by trading 5,000 units of currency, you should start trading with more money in your account. |
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