Newbie Note #1

Who wasn't new at some point in their venture or endeavour. I've been at this game for a few years now. The pitfalls, traps, lessons, and what one trading partner coined it one time "A denizen of thieves". A few snippets I can offer to those who are just getting their feet wet in this market.

• Absolutely, positively DO NOT overleverage your account. This is particularly true if you're a swing trader and you're not scalping pips with very, very tight stop losses.
• The majority of those starting out in FX want to day trade. While this is certainly a thrill and fun. There's a high probability that whatever you profit in the short term, in the long term you'll give back these profits and then some. So if I don't day trade, how can I have fun making money in FX? I'll elaborate on this in another post. I can tell you though when I gave up the day trades, I became profitable. Do I still make day trades? Hell yeah, but I'll limit my trades to 2 a week. Last week I made 1 trade for $104 bucks. To the dismay of my broker, I didn't do another day trade after Monday, just kept the money :)
  
• This leads to one of the biggest mistakes I made as a new trader. Overtrading.
  
• If you're overtrading, more than likely you don't have a trading plan. I'll make some suggestions and possibly show a few spreadsheets later on on how I manage my risk, if you're a little lazy to make a plan.