4) Forex Charts With Multiple Timeframes - This is irregardless of the forex trading system that you use. By using technical analysis to trade, you will be spending a larger percentage of your time looking at the charts. Although there are different types of charts, but the data is almost the same with different visuals.

There are some charts that are very different and need to be analyzed. For myself, I like to use candlesticks charts. The timeframe of the chart you are using is very important. For example, if you are using a daily chart and it provides you a trading signal to trade, make sure you are also using a lower timeframe like hourly or 4 hourly to make sure they are going the same direction. A forex trading tip here is, use a longer timeframe to look for market direction and lower timeframe to enter and exit the forex market.

5) Success Rate Calculation - Besides having a successful forex strategy, we will also need to have precautions and plans because you will need to know if you have made the correct decisions. You should make an effort to calculate your winning and losing trades from time to time. It will be good to analyze the last 10 of your trades to make sure that you are still doing the correct stuffs. If you are still a beginner and have not traded much, look back at past data and see if you would have profited or lost if you done those trades. This will be a good guide on whether you are on the right track.

6) Money Management - I have mentioned this umpteen times and stress how important this can be, but still many people can’t manage it well. While it seems it’s not as simple as it may be, it’s all about how you look at the way you are trading. The first mindset you should have is not about winning but preserving your capital and try not to lose. There will never be short of trading opportunities and instead you have gained something from the trade, and that is experience. If you have already applied stuffs that you have learnt on trading, then do not be afraid to lose little money. You can’t avoid losing in trading, but what you can do is to make it small and preserve capital for future chances. From the losses, you will also learn a lesson and avoid that mistake in the future.

Another tip about money management is to know how to use leverage properly. You are advised not to risk more than 2% of your equity on your trading account. For example you have $1000 trading capital, you should not risk more than $20 for a trade. Do not be greedy to try to profit a lot from a single trade even you are very confident on a specific trade, nothing is 100% guaranteed. Using too much leverage which you can’t afford to lose will mean devastating to your account.