Tips

1. Develop a Trading Plan

   Every good trader has a plan to identify when to enter a trade and when to exit, it’s important to stick to your plan and leave emotion out of the equation.

2. Develop a Risk Management System

   This should be part of your plan. Make sure you have stop and limit levels in your plan and that you stick to them.

3. Know the market and the currencies you are trading

   In foreign exchange trading, there are winners and losers. Knowing the market characteristics and the currencies you are trading will shift the odds in your favour.

Ask yourself:

• What are the fundamental factors driving the currency?
• When are the economic statistics released?
• What are the underlying time zone characteristics?