Know your risk ratio versus your earnings ratio. The analysis of risk and profits is extremely important for any FOREX trader. Minimum risk you should use is 2:1. If you are trading GBP / USD and you want to gain 50 pips, you should not risk more than 25 pips.

Have a suitable capital. If I lose 50% of my starting capital in a 6 months period, can I still be a trader? Only if the answer is ‘yes’ you can start trading. Your trading freedom must not be influenced by your fear to lose.

Is this a Trend or Neutral? Learn how to analyze the FOREX market. In a market trend, follow the trend, in a neutral market, buy low and sell high, since you are using stop loss, and you control your risk.

Understand how the market thinks. Everybody should accept that any information is already included in the price of a currency pair. You must know the indicators to come, and you need to know what is already anticipated by the market. The vast majority of the publications of the market is already anticipated and prices by the market.

Know why you are in a trade. Keep a journal of your trades and record exactly why you went into each trade. Do not be impulsive and follow your strategy, that way you will learn what strategies work for you long term and which do not work.

Study. Learn new ideas, keep up to date, and do not trade on the ideas of others, you should always know why you are in a FOREX trade.