Use your personality as a guide to determine who you are as a trader. You might like the thought of quick successful trades putting money in your pocket often, which would make you a scalper. Do you like a consistent flow of profits from well thought decisions in the short run? You are a day trader. If you prefer the possible returns from a well formulated, time invested plan then you are a swing trader. Know yourself and trade the market accordingly.
If you are new to the trading world, it is best to start with small amounts. Doing this will reduce the risk of losing a lot of money, allowing you to act calmly and reach some long term goals. Putting a lot of money into trading can lead to putting a lot of emotion into trading, which can lead to making the wrong decisions.
Remember that loyalty is a good thing, but that is not always a good option when trading with the forex market. If you are trading and XRP you see that you are steadily losing money on a trade then the best thing to do would be to change positions. Forex trading on your own with no broker to help you can be trick. This is because you will not always have the inside scoop on things as the larger business people do. If do find you need to call for help, it can also end up costing you fees.
Even though forex trading is done in pairs, it is important to understand the strengths and weaknesses of single currencies. If a currency is dropping against another specific currency, look into why it is dropping. Currencies might be weak against one other currency but strong in a different market, or they can be weak across the board. Knowing the single currency strengths will better help you pick currency pairs.
There are a few things that heavily affect the trading market. These things include interest, inflation rates and exchange rates. These things should be paid attention to, as they can affect global trading of currency. The exchange rate can affect you directly too, because it affects the returns on your investments. Be sure to learn about everything that can affect the outcome of your trading.
Know your forex broker before you open an account with him. Start trading with smaller amounts; compare his charts to graphs from other sources to make sure he gives you correct, unmodified information. Learn the forex broker's dirty tricks before you start trading so you won't lose money by falling for these practices.