Research is important if you plan on making money on forex trading. You have to know the economy, not to mention trends that could easily make you lose trading decisions. You need to recognize markets. You need to read a number of news clippings. And of course, never dabble on something that you are not familiar with. Are you trading US dollar and Japanese Yen? If so, make sure that you are well versed in both economies.

Losses are normal in trading. However, whatever it is that you do, never be too greedy when you trade. Make sure that you know your own risk tolerance. Most people trade using their emotions. Be sure that you look at the charts and the numbers if you decide to dabble on forex trading.

You have to know your jargons. You need to read trading books in order to understand how the system works. As rule of thumb, if you are going to invest your money into anything, you have to learn the ins and outs of the game.