FX online trading, up until not too long ago, trading forex online was like gambling in a casino. Now, by following a few new rules and having discipline, you can an turn a profit in with a minimal amount of experience.
But if you start trading with your guy and emotion, you're better off taking your money to the Blackjack table.
Traders who follow a few rules are most likely to come out winning. First people who think they have come up with a theory but has not been proven in a market setting are likely to learn a costly lesson — the volatile forex market is immune to and new trading theory.
The second lesson for people who take FX online trading seriously is to never invest money in a Live Trading Account until you've tested the market with a Demo account. Like test-driving a car before you buy it, a Demo account allows you to hone your skills in the marketplace, risk-free. A fun-fact to keep in mind is that 90 percent of new forex traders fail in their first 2-3 months of trading, so why not make this learning curve with theoretical money instead of your hard-earned cash?
Third, go with the market trend. Trade with the trend and you're bound to succeed. It's the only true tried-and-tested strategy out there, and what's more, it's common sense. Essentially, you don’t' want to be selling when the market is going up; and you don't want to buy buying when the market is going down.
Fourth, always look at the bigger picture. The big, long-term charts give you better perspective of price trends through time, which will help you see a trend quicker. When trading using hourly charts, always have daily and weekly charts on hand to help you see a long term trend.
Fifth, never trade more than 5 percent of your total trading account. FX online trading "separates the men from the boys" so to speak, in that the people who succeed are the ones who can weather unfavorable market conditions. For this reason, never throw all your money at a trend you're sure is on the horizon.
Next, NEVER trade with emotion. There isn't an experienced trader in the world (with two pennies to rub together) that will tell you different. It's the cardinal rule — don't trade and react to the market with emotion. Overreacting to a market swing won't necessarily wipe you out, but it greatly increases risk and you're not likely to make money in the long term.
Finally, choose a time frame you're most comfortable with. FX online trading should be done with enough time for you to analyze the market and predict trends. Too short or too long for you and you won't able to clearly see where the market is going. So for new traders, it's best to trade at different time frames to discover which one is right for you.