1. Since you are trading currency pairs instead of a single currency, you want to be knowledgeable about the strength of both currencies and how they relate to each other. Good information on one currency without good information on the other currency can decrease your profits or worse yet, turn a profit into a loss.
2. Knowledge is the key. Maximize your probability of profit by knowing more than the other traders. Never stop learning. This website can help you do that.
3. Forex traders make money on volatility. Make volatility work in your favor. News and events create volatility. Learn to anticipate it and use it to your advantage.
4. Rely on the raw news rather than someone's spin on the news. Realize that reporters can have their own agenda and biases.
5. Learn when to take profits and when to let it ride. Scalpers who just take small profits get hurt by the bid/ask spread and leave a lot of profits on the table. raders who stay too long at the party can see their profits vanish.
6. There is great power in leverage but it must be used wisely. Wisdom comes with experience. Don't use high leverage until you have gained sufficient experience, wisdom, and success.
7. Formulate a simple, formal written strategy that you will adhere to. Analyse your losses so that you can modify your strategy slowly, when needed, as you gain experience with it. A clear written strategy helps you learn what works for you and what doesn't.
8. Let the trade come to you. Don't trade just to trade. Wait for the right time to execute it.
9. Restrict your trading to the right times, when things are in your favor. Trade during peak hours when volatility is high. Hedge Funds have an advantage in off-peak hours, so don't let your money feed their profits.
10. Plan your trade and trade your plan.
11. The trend is your friend - trade with it.
12. Control your emotions or they will control you.
13. Don't risk more than you can afford to lose. Fear of a loss can cause you to make mistakes.
14. Let your profits ride, but limit your losses.
15. When a trade turns against you, accept your mistake and move on. If you are stubborn and stick with a losing position, it can lead to big losses.

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