Forex Trading Tips

Become a PRO Trader

Forex/FX trading is an abbreviation used to describe foreign exchange trading, a highly popular method of trading based on continuous shifts in currency values.

  • 01

    Be prepared and do your due diligence

    To give yourself the best chance of success when trading, it pays to ensure that you're on top of the factors that can have an effect on exchange rates, including the type of events that have proved important in the past and modern trends. 

    There is no guarantee that having this knowledge will result in profits, but it should help to prevent you making unnecessary errors which may cost you.

  • 02

    Make sure you're aware of your trading level

    Forex markets very often change swiftly so it’s imperative to be aware of the movement of your open positions. ETX Capital also allows you to employ a number of different stop-loss facilities, with which you can set a predetermined limit to the amount that you can lose (for more information on the stops we offer, please take a look at our What is Spread Betting page on our UK site). 

    By offering trading apps on Android, iPhone and iPad, ETX gives you the ability to always have control of your trades, wherever you go.

  • 03

    Control your risk

    Forex trading offers the potential to make large profits, but equally the potential is there to incur big losses should the markets move in the opposite way that you expected.

    Some of the stop loss facilities provided by ETX allow you to limit possible losses. For longer-term positions, ETX Capital offer premium guaranteed stops, which stay in place even outside of normal trading hours and come into play even during a surge in the market. Another effective method of controlling your risk is to sit down and work out exactly how much you are willing to risk before making any investments.

  • 04

    Be wary: Emotions can affect your trading

    It's very easily to let negative results affect your normal trading style. When you've just taken a big hit, it's human nature to want to recover those losses, which could lead to you taking unnecessary risks.

    In such moments it's very often the best tactic to take a break and give yourself time for your emotions to settle down. Once calmer, you'll be in a much better position to analyse what went wrong and come back fresh and ready to get back to trading.

  • 05

    Consider the overall picture

    When you've got multiple-trades in place it can be easy to concentrate on looking after the minutiae of each individual market, rather than stepping back to consider the bigger picture.

    Keep an eye on your collective funds and decide how much of a percentage profit you hope to make with them. This will allow you to better decide which trades to make and avoid high-risk tactics.

    Such strategic thinking will also help you to picture broader market movements and long-term trends, rather than focusing on fluctuations happening in the here and now.

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