forex for dummies

Not trading or standing aside is a position.
When in doubt , stay out. If you are not clear or cannot predict correctly where the market will move,don't trade. Saving present capital is and absolutely better choice than risking and losing money.

Learn to use protective stops. Respect them and don't move.
Hoping that market will turn in your direction is a very delusive hope. By moving a stop loss further a trader increases his chances to end up with much bigger loss.

"Keep it simple, stupid" — applies to indicators, signals and trading strategies.
If you get too much information,it will create a controversial picture of where to trade and when not to. To avoid lots of confusion create a simple but working method of trading forex.

Think about risk/reward before entering each trade.
How much money can you lose in this trade? How much can you gain? Now, make a decision if the trade is worth entering.

Never add positions to a losing trade. Do add positions when the trade has proven to be profitable.
Don't allow a couple of losing trades in a row become a snowball of losing trades. When it is obviously not a good day, turn the monitor off.Trying to get revenge can often make things worse.

Let your profits run.
Let your position be open for as long as the market wishes to reward you. Of course, for this traders need a good exit strategy, otherwise they risk to give all profits back.

Cut your losses short.
It's better to finish unprofitable trade quickly than wait for the situation to get worse. Don't put a stop loss too far, it's your money you risk.

Trade currency pairs in respect to their active market hours.
Learn about overlapping market hours: when two markets are open and highest volume of trades is conducted. For example, Australian and Japanese trading sessions are overlapped from 8pm to 1 am EST. At that time trader can successfully trade AUD/JPY currency pair.

That's all..and good luck!!