(1)  Don't always follow the crowd.  Often, by the time "the crowd" has reacted, the price move is almost over.  The largest profits are made by the forex traders who identify and catch the price move early, before the crowd.   

(2)  If you end up the wrong way in a position, try to avoid the temptation of quickly reversing the position to "get back" a loss.  Reversing a forex position is sometimes the right move, but simply make that move for the right reasons, not because you let your emotions get in the way of sound judgment.

(3)  Be decisive when "pulling the trigger" on a trade.  If you are confident in your fx trading strategy, you should not be overly cautious or indecisive when making trading decisions because waiting too long could cause you to miss out on a good profit opportunity.

(4)  Let your profits run, but don't let greed get in the way.  Once you've already made a nice profit on a trade, consider taking either some or all of the money off the table and move on to the next trade.  It's natural to hope that one trade will end up as your "winning lottery ticket" and make you rich, but that is simply not realistic.  Don't hold the position too long and end up giving all your well-deserved profits back to the market.

(5)  Use appropriate stop-loss orders at all times to cut your losses and never, ever sit back and let your losses run.  Almost every trader at some point makes the mistake of letting his or her losses run in hopes that the market will eventually turn around in his or her favor but, more often than not, it simply leads to an even greater loss.  You win some, you lose some.  Simply learn to cut your losses, take your occasional lumps and move on to the next trade.  And if you made a mistake, learn from it and don't do it again.  To avoid letting your losses run, get into the habit of determining an acceptable profit target as well as an acceptable risk tolerance level for each and every forex trade before entering the market.  Then simply place a stop-loss order at the appropriate price - but not so tight (close to the market) that the stop could quickly take you out of the position before the market has a chance to move in your favor.  Using a stop is always the smart move.

(6)  Trying to pick tops and bottoms is another common fx trading mistake.  If you're going to trade tops and bottoms, at least wait until the price action actually confirms that a top or a bottom has been formed before you take a position in the market.  Trying to pin-point tops and bottoms in the foreign exchange market is very risky, but exercising a little patience and waiting for a proven top or bottom to form can increase your odds of profiting and somewhat reduce your risk.

(7)  Last, but not least, always do your homework and stay current on global events.  You never know what's going to set off a particular currency on any given day.  We have taken the time to put a large amount of information on our fx website to inform and educate our clients, and we hope you will take a little time to check out the rest of our website and take advantage of the information and technology available through CFOS/FX.