I recall my early days of forex trading.
Back then I know as much about forex trading as I know about what will happen tomorrow. Long time readers will know, I suffered 3 margin calls!
Let me present 3 tips I gathered from my mistakes.
1) Consider how much can you afford to lose without making a negative impact in your life. Stick to that amount. If you cannot afford to lose any money, don’t trade forex.
2) All trading decisions including scalping should be planned prior to execution. You need to determine your stop loss and take profit values so that you are mentally prepared of your possible loss if any.
3) Be well informed of any major market events or economic releases such as US Non-Farm Payroll or Brexit. This way you won’t be caught unaware and hence stressed.
4) Avoid having trades opened over the weekend unless you have factored a possible forex gap in your plans.
5) Practice proper money management. Lose 3% of your account and you are left with 97 %. Lose 30% of your account and you are left with 70%.