Forex trading is probably one of the hardest ways to make consistent profit from the internet. There are forex trading tips, solutions, automated software and a strategy filling the search engines by the thousands and it is difficult to know whether you can rely on the information or not. My advice to you is take your time and test out the forex trading tips you find with a demo account.(try; capital spreads)
If you are in a real rush to dive head first into forex trading then you need to think twice, one of the most important aspects of forex trading is patience. I am not going to promise you overnight wealth with the forex trading tips I am about to reveal to you in this article or even if they will work for you at all. What I am going to say is that they work consistently for me and you should test them on a demo account first.
I trade using 5 minute time frames and two exponential moving averages a 10 and 20 Nbr periods. I look for three things on my chart to enter a trade; the crossover of the moving averages to indicate a change in direction, to suppress previous price action and make a new high or low and to look for a target or new resistance or support at least 20 pips away.
This previous statement may sound complex or if you have some experience in forex trading it may sound a little simple. This method is very simple and easy to use throughout the day on the forex market. The forex trading tips I would like to offer with this method are what makes it great; use your stop loss to your advantage and not just as a losing point, once you are in profit start to lock in that profit by first of all moving your stop loss up to your entry level. Try to keep 30 pips away from the current price and lock in 10 pips at a time.
Also you can take out 80% of your profits once 10-20 pips up and leave 20% running, this will turn your trade into a risk free trade with profits in the bank. Make sure you keep moving your stop loss up to new support levels to lock in those profits.