Forex tip trading can be one of several things. The first is that you received a tip which is simply a piece of information about the direction the Forex market is headed. Financial tips such as easily come from friends or family members who feel they have some knowledge or special information which they can use to profit in the Forex market. Usually it’s best to stay away from Forex tips for your trading needs simply because the quality of the information varies so greatly. If, however, the tip comes from someone who has consistently made money and been successful in Forex trading then that is a tip you might want to pay attention to.
The other type of Forex tip trading is also known as Forex rule trading. This simply means that as a trader you follow a set of rules that have been laid out to help you be successful. Here is a list of some of the most useful Forex tips:
Always have a trading plan. One of the most common mistakes made by new Forex traders is jumping into Forex trading without proper preparation. Like any smart business person you need to have a business plan before you go into business.
Don’t trade with money that you can afford to lose. Only use a risk capital also know as speculation capital when trading in the Forex market. Don’t forget that Forex trading is speculation and that speculation is risky and must be approached with caution.
Don’t be tempted to get rich quick. Quite possibly the worst mistake that a new Forex trader can make is to try to compress the time frame for success. When approached properly Forex trading can to make you very successful and can even make you wealthy. When approached haphazardly Forex trading can be an incredible cash magician and make any amount of money disappear.
Those are just a few examples of Forex tip trading with a few of the time tested tips that are used by successful traders.
