Forex trading is risky, exciting and potentially, very profitable. You don’t want to go into the foreign currency market without having a solid plan. The pitfalls and stumbling blocks in forex trading are ever present. In this article, you will find tips on how to succeed in the market.

Stop “taking a shot” or “testing the waters” just to see what happens. That is gambling not trading. Your trades should be based on an analysis of the trends and the market state, not on your hunches. Build this into your trading plan. Require that you have a firm reason before making any trade.

In trading, you need to know when to cut your losses. You need to pull out with losses early to avoid them growing worse by leaving them in longer. This is real money you have on the line, so be smart about when you should place a …