Forex trading is fast becoming one of the easiest ways to earn large amounts of money on your investment. Then again, it can also be the easiest way to lose all of your money in a short period of time. That is, if you do not know what you are doing. The fact is that even seasoned traders make mistakes and only through the understanding of basic principles and the application of sound strategies can you be assured of earning money in the long run.

One of the most basic things that you have to understand about Forex trading is that there will always be losing streaks along with the winning ones. Having this fact in mind will keep you going during those times that you do not get a good deal. The best way to handle Forex trading is to have a reliable trading system coupled with a rigid money management system.

There are many different strategies employed in Forex trading today. What you should do is either adopt one of them or come up with your own. No matter which path you choose to take, the important thing is that your trading system has been proven or can be proven to be reliable. How would you know that your trading system is reliable?

It is quite simple, really. A reliable trading system is one which gives you more winning trades than losing ones. More than this, your winning trades should be – in general – of greater value than your losing trades. You do not need to be a rocket scientist to figure this one out. More wins with greater value equals profits. No matter how you come up with your trading system, the bottom line is that you get consistent results.

Once you have come up with your trading strategy, try it out first. You can do this by using a demo account before trading live. Using a demo account is advantageous as you will be doing exactly the same thing as live trading – without real money. This way, you can test your strategy and pick out the flaws f there are any.

If, after you have tested your strategy, you are confident that you are getting consistent results, you could go live. Your strategy should not stop there, though. Once you engage in live trading, you must take care to instill strict discipline when it comes to money management. Do not deviate from your strategy once it is put in place. This is perhaps the foremost reason for traders to suddenly lose everything. Always remember that you cannot win all the time and that losses are part of trading. If you have a strategy in place, do not scramble to recoup your losses outside the boundaries of your strategy. The trend is that winning will come soon after your losses.

One rule you should stick to is never trading with more than 2% of your account at risk on a single trade. Whether you win or lose, this percentage is going to get you the long term results that you are aiming for.

Have you always wanted to be a professional Forex trader? Here are some of the best Forex trading strategies used by professionals that you can use:

Avoid Short Time Frame Charts

To make real profits you need to avoid focusing on short time frame charts-you should invest your attention at higher time frame charts. The cool thing with higher time charts is that they contain more accurate and meaningful data that helps you in understanding more about the market. In addition to this, it’s easier to analyze the market when you use a higher time chart.

Precision Trading

This is where you trade at the right market. Here you need to sit and wait patiently for the right trading condition to come up. The best way of going about it is looking for established trends in the market and execute your trade at the right time.


This is a strategy that helps you in reducing the risk of making loses. To hedge you only need to initiate a long and short position using a single pair.


This is a practice where you make a very short term trade for just a few pips. For ideal results you should use scalping in conjunction with a news release or any supportive condition.

When using this strategy you should be cautious of the trading time so that you don’t end up making huge loses. As rule of thumb you should remember that a trade lasts anywhere between a few seconds and a few hours.

Think Big

The Forex market undergoes many changes every week and as a professional trader you need to take advantages of these moves and make huge amounts of money. To save time you should aim at making a sizeable amount of profit and hold it for a few days and weeks. This calls for you to enter larger positions. As rule of thumb you should avoid entering into many small trading positions that require you to dodge in and out of the market every day.


These are some of the tips used by professional Forex traders. When trading you should be cautious and always protect your investment. This calls for you to place a stop-loss to every trade that you open. It’s also good that you avoid being greedy by placing a leverage that is too high. As rule of thumb you should risk an amount that you can comfortably lose.