by Forex Day Trader Gregor Anton – http://www.ForexCurrencyDayTrader.com

Last week I had some very successful trades. I wish they all would be positive, but lets face it, this isn’t a get rich quick scheme. You will have losses. How you manage your money and minimize risk, and minimize losses will play a key role in becoming a successful Forex Trader.

Rather than looking at how to get the most pips and make more good trades, lets focus on minimizing your Trading Losses:

* No Trade = A Good Trade – I’ve been there too, it’s tempting to jump in and make a trade. Patience is key. Create a demo account and practice your hunches there. Only trade when you’re 100% sure all your trading conditions are met.

* Don’t Babysit Your Trade – Follow your trading plan, system, and strategy, and don’t change it mid-stream. Know your entry and exit condition and don’t babysit that trade. Everyone loves watching that green positive number get bigger and bigger, but don’t stress yourself out and watch it fluctuate or worse, go into negative red numbers. Follow your plan, set your stop losses and take profits. Set your alerts. Walk away or do something else.

* Don’t Get Greedy – No matter how many pips and profit you make, you’ll always want to make more. Sometimes less is more and that extra 10 pips can cost you the 200 you just made earlier. Emotional and impulse Trading is Gambling.

* Save Your Emotions – This is a tough one for many people. Even with the best of trading plans, systems, and strategies. And in my experience, especially with Forex Robots, Signals, and Alerts. Let your profits run, cut your losses, and be sure to stick to your system and strategy. Relax, you’ll trader better!

* Measure Profit in Pips – Focusing on pips rather than profit in dollars is far better. $’s make it emotional, pips keep it strategic. If you’re not comfortable trading bigger lot sizes, don’t.

* The Trend is Your Fairweather Friend – And you thought it was your friend… It will change and according to some the Forex Market is Trending only 20% of the time.

* Set Goals – Know exactly how many pips you are targeting. How many good or bad trades you’re going to stop at. Everyone has bad days… I go for a walk, eat some Ritter Sport chocolate, grab a Mocha at Waves Coffee, or change my scenery in some way that gets me away from Forex. Bottom line, have a plan! …and follow it.

* Set Conditions – When are you going to enter/exit a trade? What is your Stop Loss / Take Profit? What are the market conditions? Market hours? Will you Trade around news times?

* Economic Calendar – News can really impact the Forex market. This “noise” can really impact your open trades. You need to stay on top of Forex News by checking the Economic Calendar at least daily and determine if you’re going to trade around news times or not.

* Manage Your Money – Only Risk 5% at most. Combined. If you have multiple trades, the sum should be 5% or less. Any more and you’re asking for a heap of trouble and the word gambling comes to mind. Be very careful. The more you risk, the sooner you can go broke and the longer it takes you to rebuild your account.

* Know Your Risk / Reward – How many pips are you willing to risk to make your pips? Are you going to risk 100 pips to make 10? Clearly you want to risk less than you are bound to make.

* Take a Forex Trading Course – Education is key. Education can be expensive, the alternative is far more costly. That one tip or strategy you learn can be the distinction that’ll change everything. There are many great trading courses out there, and there are many scams and hack-job courses too. Visit my site to find out who I swear by.

* Take a Forex Trading Course – Education is key. Education can be expensive, the alternative is far more costly. That one tip or strategy you learn can be the distinction that’ll change everything. There are many great trading courses out there, and there are many scams and hack-job courses too. Visit my site to find out who I swear by.

* Walking Away is the most important part of your day – We’ve all been there, a great trading day, week, or hour. x amount of successful trades, you’ve met your target and you’re excited. Do yourself a favour. Walk away and end on a high note. The markets are quick to turn and in our over-excitement the simplest mistake can cost you all your profits. Just walk away and continue on another day!

Learn more about Trading the Forex Market. Stop by Gregor Anton’s site where you can find out all about Minimizing Forex Trading Losses.

categories: Forex Day Trading, Minimizing Forex Losses, Forex Online Trading, Forex Tips, Currency Trading, Currency Exchange, Forex Market, Forex System