Seven Rules of Trading

A number of successful, full time forex traders have offered seven rules that all traders should read through. These rules come from the mistakes of others so that you can learn from them.  Just like gambling, you should never risk more than you can afford to loose.  All traders will loose, that is a fact of life, just do not sacrifice something important.

When you have a simple trade, be sure never to risk over two percent of your margin. For a mini account you can go to five percent.  Another important rule is to always remember to use a stop loss order. If you don’t know where or how to limit an order, then you should not be trading.  Rule number four is to not enter a trade unless you know your exit point.

If you demo trade first, you will be successful with paper trading before you ever get online and risk you money with a real time account.  The next rule is short but is just as important as the others.  If you equity has taken a dive, sit and take a breather to collect yourself. Don’t trade to try to gain back what you just lost, it never works that way. Last of all, never let your emotions tell you how or when to trade.