Forex Trading Rules

High percent of investors lose money in forex trading, only few percent makes money. Given the high casualty rate, it is all the more important for investors to approach forex trading in the correct manner.

Few Forex Trading Rules that should be kept in mind while trading...

1. Never over-trade.
2. Never risk more than 10% of your trading capital in a single trade.
3. Never trade without protective stops.
4. Never cancel a stop-loss after placing a trade.
5. Never average a loss.
6. Never let a profit run into a loss.
7. Never buy or sell just because the price is low or high.
8. Never try to guess tops or bottoms.
9. Never try to regain all your loses in one trade.
10. Never trade with money you cant afford to lose
11. Never limit a profiting trade, instead move your stops to guarantee a profit.
12. Never get out of the market because you have lost patience or get in because you are anxious from waiting.
13. Never hedge a losing position.
14. Never change your position or close a trade without a good reason.
15. Never get greedy and hope that you will make more if you git the target.
16. Never follow a blind man’s advice.
17. Never let your losses get to you psychologically
18. Never enter a trade if you are unsure of the trend. Never buck a trend.
19. Never meet a margin call. If you have a margin call it means something went wrong with your trade.
20. Avoid scalping for small profits and taking large losses.
21. Avoid trading after long periods of success or failure.
22. Avoiding going in and out of the market too often.
23. Avoid getting in wrong or getting in right and out wrong, making a double mistake.
24. Always identify strong support/resistance levels.
25. Always lock in a profit at predetermined increments on profiting trades.
26. Always use protective stops on open trades.
27. Always remeber that the market is never too high to buy or to low to sell.
28. Always distribute your risk equally among different markets.
29. Always be willing to make money from both sides of the market.
30. Always reduce trading after the first loss; never increase.
31. Always cut your losses short and let your profits run.
32. When in doubt, get out. Do not get in when in doubt.
33. Only trade active markets.
34. Only trade markets you are sufficiently capitalized for.
35. Only pyramid trades that have a strong trend and should be accomplished once the price has crossed support/resistance.
36. Profits from a successful trade should be kept for future trade margins.