- Always use Stop Loss Orders. If you don’t use them, it will kill you financially. We recommend stops of 30 pips above or below your entry price.
- Don’t loose more than 2%-5% of your total capital in each trade. Adjust your stop orders and leverage if needed.
- Let the profits run, cut the losses. Use a “Trailing Stop”If your broker doesn’t support it, you can do it manually. Set the stop price at 30 pips (or the amount that you have chosen) above/below the maximum/minimum price since your entry. You will have to adjust the stop level continuously, but you will get much better results.
- “The Trend is your Friend!!” Go with the trend never go against the trend.
- Capitalize well. Fund your account with enough money. For standard accounts, at least $5000 (for mini accounts $500).
- Don’t leave trades open overnight. In addition, your Forex broker will charge you “interests” for open positions overnight. Interest is generally chargedat 5:00P.m. EST. Please keep in mind that most brokers will also charge 3 X time the regular interestrate on Wednesdays.
- “The number’s don’t lie” – all available information and its impact on traders, and the market, is already reflected in a currency’s price.
- History repeats itself – over time, certain chart patterns become consistent, predictable and very reliable. The catch is SEEING them.
- “Never start Trading without FIRST using a DEMO Account. A Demo Account allows you to become familiar with trading procedures, such as placing Market, Stop and Limit orders without any risk. All dollar losses or gains in a Demo Account are imaginary but the EXPERIENCE is INVALUABLE!