So you have been thinking about Forex trading, well before you get started you need some rules and guidelines to help you become a successful trader. The other question you need to ask yourself is do you really want this? What are the reasons that you have decided to trade forex? If you write this down and continually look at these reasons, you will increase your chances of becoming a successful trader.

At the CFD FX REPORT we are big believers in these principles and we make sure that we are continually developing our members on getting better traders. If you are looking for a great Best Forex Broker that can help you implement these rules then please feel free to contact us

The 30 Rules to Follow to Forex Trading Success:

1. You should never over-trade - Don't trade for trades sake, you will lose otherwise

2. Make sure that you never risk more than 10% of your trading capital in a single trade, protecting your capital is very important. There will be more trade opportunities

3. Ensure that you never trade without careful stops and use trailing stops

4. Don't cancel a stop-loss after setting the trade- other than get out

5. Never average down on a suffering trade

6. When you get into a profit never let it run into a loss.

7. Never buy or sell just because the price is low or high, as what is high and low

8. Never try to think tops or bottoms- otherwise go to the casino and pick black or red

9. You should never limit a profiting trade, instead move your stops to guarantee a profit- ideal trading is as soon as you get into a good profit at aleast ensure a break even

10. You should never close a position toget out of the marketplace because you have lost patience or get in because you are anxious from waiting.

11. Please never hedge a losing position.

12. Never change your position or close a trade without a great reason.

13. Never follow a blind man's advice, everyone has trading certainties. Use systematically approach

14. Make sure that you never enter a trade if you are unsure of the trend. Never buck a trend. Remember the rule TREND IS YOUR FRIEND

15. Try to avoid scalping for little profits and taking large losses if you scalp you need tight stops

16. Avoid trading after long periods of failure - take a break, re look at your goals.

17. If you have a great run don't keep raising your trade size, otherwise you will blow yourself up. Remember great runs will come to an end, and sometimes great runs turn into bad runs.

18. Avoid getting in misguided or getting in right and out wrong, making a big mistake.

19. Always identify firm support/resistance levels.

20. Always lock in a profit at predetermined increments on profiting trades.

21. EVERY trade must have stop losses

22. Always distribute your risk equally among different markets.

23. Don't be a one trick pony, make money from both sides of the marketplace

24. Always reduce trading after the first loss; never increase, it is ideal if you use equal trade sizes, do not double up and try and get your money back.

25. Always cut your losses short and let your profits run - remember learning to take a loss is the first step to trading success.

26. When in doubt, get out. Do not get in when in doubt - back yourself if it doesn't feel right don't do it. Follow your gut sometimes as most of the time it is right.

27. Only trade active markets- illiquid markets will leave you thirsty- remember small markets are easy to get in, but remember you always have to get out. This is why forex trading is so popular.

28. Only pyramid trades that have a firm trend and should be accomplished once the price has crossed support/resistance.

29. Profits from a successful trade should be saved for future trade security deposits or put somewhere else, spread the risk.

30. Make sure you follow your rules

Extra Trading Tools:

If you are short term and trade goes bad, cut it, don't become a long term trader, other than you buying and hoping, not even buying and holding. Have a trading strategy before entering the market. Know before the trade is executed where you will take profits/loss.

Understand why a win/loss occurred and how you could of made the trade better. Consistency is the key to trading success, without it you have nothing. Your assessment is the only care, do not let outside factors affect the way you trade. Not everyone can be a trader, deem yourself worthy if given this opportunity. Most importantly have fun and stick to your rules and hopefully by following these rules they will increase your chances to becoming a successful Best Forex Broker

I hope this helps you achieve your goals. Happy Trading

This article focuses on building up solid forex profits using proven long term trading strategies. If you look at any forex chart, you will see long-term term trends that last for months or years. These moves can and do yield serious profit - present we will outline a simple method to get them.

Breakouts- Trading on Confirmation of Break Outs

By far the best way of catching the serious moves is to use a forex trading strategy based around breakouts. A breakout is simply a move on a forex chart where a new high or low is made and resistance or support is broken.

It's a fact that most leading moves start from new highs or lows. Right this an sit it next to your computer so that you don't forget it.

While it might appear that you are not buying or selling at the greatest level, you are in terms of the odds of the trend continuing. Most forex traders make the mistake of waiting for the breakout to come back and get in at a better price but these traders never get on board. The grounds for this is if a breakout occurs, then you have a new strong trend and a pullback is not very likely to occur. So you will the boat and therefore profits.

Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.

The only point to keep in mind is a support or resistance which is ruined, should be valid and that means at least 3 points in at least 2 different times frames. The more tests and the greater the spacing between the tests the more valid the level is.

Confirmation- Don't Guess it, Confirm It

Of course not every breakout keeps and some reverse, these are false and can cause losses. You therefore need to confirm each move. All you need to do to achieve this is to put a few momentum indicators in your forex trading system to confirm your dealing signal.

These indicators give you an estimation of the strength and velocity of price and there are many to choose from. We don't have time to discuss them here (simply look up our other articles) but two of the greatest are - the stochastic and Relative Strength Index RSI

Stops and Targets

Stop points are easy with breakouts - Simply behind the breakout point.

If you have a serious trend then you need to be careful but you can milk it, so don't move your stop to soon and keep it outside of normal volatility. If it is a huge move, trailing stops should be held a long-term way back and the 40 day moving average is a good level to use.

You have to keep in mind that when the trend does eventually turn you are going to give some profit back. You don't know when the trend is going to end, so don't predict it.

It's ok to give a little bit back, as that's the nature of trading forex. Keep in mind if you got 50% of all leading trend you would be very rich. When you are long-term term trend following you have accept giving a bit back and taking dips in open equity as the trend develops - this is noise and does not affect the long term trend.

The above is a simple way to trade forex and catch the high odds moves that yield the serious profit. If you are learning forex dealing and want a simple method that is robust and will help you get every major move, then you should base your dealing on the above method.

Now that you have all the winning strategies, you now need to have a winning broker, recently the CFD FX REPORT has reviewed these brokers and have come up with Best Forex Broker

Any trader serious about gaining extra knowledge and becoming a better trader should continue to educate themselves as great place for Free education lessons is the CFD FX REPORT they offer as host of great education lessons. You can also join there forum and chat to traders around the world, or visit there broker section and see who the expert recommend. This site is a must for anyone serious about trading.

About the Author:

The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.

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