FOREX MAKETING / FOREX TRADING / FOREX ANALYSIS

Do you know that a good forex trading system can turn into
a losing system if you do not have good money management? On the contrary, a
good money management rule can turn an average trading strategy into a winning
one. Let's look at some forex tips on how to double or even triple your gains
when making money online.

1. Reduce trading frequency and
don't overtrade

Many novice traders just got too impatient to
wait for quality trades. Therefore, they trade too much and the worst is they
take any kind of low probability trades. I have mentioned that forex trading is
all about probabilities no matter what kind of forex strategy you use.

Though I also said that good trading opportunities will come easily,
you must still observe the rule of taking only quality rather than quantity
forex trades. There are traders who only trade 3 or 4 times a month and it is
already enough for them to make a living in the forex market.


2. Diversify your forex trades

Diversification does not only
have to apply to stocks, you can use it in forex trading too. If you have a
small account and you think that you will only need to concentrate on one
currency pair e.g. EUR/USD to make a living as a forex trader, then you are
missing out something.

To become successful in trading and
become a full time trader, you will need to trade more than one currency pair
because while one pair does not gives you forex signals, the other pairs may
have trading opportunities.

3. Forex money management is
about calculated risk and probability.

The fact that many
traders try to avoid risk in forex trading is totally wrong! How can there be no
risk in the forex market? The solution should be how you are going to handle
risk and not how to avoid it. Some forex trading tips here is that you should
have a good risk to reward ratio as a money management rule.


Imagine that you risk 200 pips just to get the 20 pips profits, then you will
have to get 10 trades right to breakeven if you have lost one! This is not the
correct way of trading. Instead, if you risk 30 pips, then target 60 pips or
more as profits, so that one winning trade is already enough to cover if you
have 2 lost trades. And good risk to reward can lead you to achieve triple times
your forex profits!