Here are some tips I got from being a forex trader for some time, some from my own experience and some being a wise listener:

1. Never, ever under any circumstance add to a losing position.... Nothing needs to be added; to do otherwise is illogical and will absolutely lead to ruin... Count on it and count on it again!

2. Trade like a mercenary guerrilla. We must fight on the winning side and be willing to change sides immediately when one side has gained the upper hand.

3. Capital comes in two varieties: Mental and Actual. Of the two types of capital, the mental is the more important and expensive of the two. Holding to losing positions costs measurable sums of actual capital, but it costs immeasurable sums of mental capital.

4. The objective is not to buy low and sell high, but to buy high and to sell higher. We can never know what price is "low." Nor can we know what price is "high." We can, however, have a modest, reasonable chance at knowing what the trend is and acting upon that trend.

5. In bull markets we can only be long or neutral, and in bear markets we can only be short or neutral. That may seem self-evident; it is not, however.

6. "Forex markets can remain illogical longer than we can remain solvent," according to our good friend, Dr. A. Gary Shilling. Illogic often reigns and markets are enormously inefficient despite what the academics believe.

7. Sell markets that show the greatest weakness, and buy those that show the greatest strength. Metaphorically, when bearish we need to throw our rocks into the wettest paper sacks, for they break most readily. In bull markets, we need to ride upon the strongest winds... they shall carry us higher than lesser ones.

These are not all the tips, but they are enough for now, forex can be demanding.

Are you looking into breaking into the field of professional foreign exchange trading? Or are you already a forex trader doing it regularly? Either way, go on reading, you might get a thing or two out of this article.

Traders are a special kind of human being. They “hitch-hike” the markets to earn a living everyday. We have a look into the insight of a day in the life of a forex trader.

Any professional trader has the potential to make massive returns from their initial investment or on the less positive side any trader can make massive losses. It is not a game of chance (like most think). Trading is a skill of emotional control and calm decision making. Traders have a profound understanding of market characteristics and their behavior as a response of economic influences.

Traders are a 3^rd player in a 2 player’s game. The foreign exchange market is buyers and sellers, who each need or want certain currency. The traders see how the rates change according to the supply and demand, and act upon it - buying when they think it’ll go up (going long) and selling when they think it’ll go down (going short).

When the rates fluctuate - there are only three directions they can go: rise, fall or stay the same. Currency prices only stay the same if the currency value is not floated and fixed to a certain value.

The advanced forex trader waits for a new trade or rather waits for the right time to open a new trade by looking for the right indicators and signs to signal an entry into the foreign exchange market.