Forex trading for the beginner

Decide on a forex trading system that suits your personality.
Which forex currencies will you follow? Focus on a couple of major FX currencies pairs and get a feel for the price action, read up on the fundamentals, know the interest rate differentials, study the charts etc
Paper trade for a while before you hit the real market. Many online brokerage accounts allow paper trading which will also help you get used to the trading platform.
After a while, start real trading on a small scale – paper trading cannot simulate the feeling of having your own money in the forex market.
Analyse all your trades – keep a record or journal and ask yourself why you entered a trade and where you got out. Few beginners do this, but it is an invaluable process for your forex education.
Always have a stop loss level in mind before you enter a trade and be disciplined enough to use it. Many trading platforms allow you to specify a stop which is executed automatically. Some spread betting firms will charge a slightly larger spread to guarantee this stop. Be careful not to make the stop too tight – you may be stopped out only to see the market turnaround and go in your intended direction.
Avoid over trading, as commissions will eat into your return.
Set a time frame for your trade. Only get into a trade if your system confirms entry. Don’t trade because you feel like ‘getting some action’ – that is the fast way to the poor house!
Run your winners and limit your losses.
Don’t get over-emotional about your forex trading. Let the system dictate your entry and exit points.
Practice sound money management – don’t put more than 2% of your wealth in any single trade. Think about managing risk rather than the potential rewards. If your stop is hit how much will you lose?