Important trading rules

 


1. Risk Management



  • Never risk more than 1–2% of your account per trade.
  • Always use a Stop Loss.
  • Keep a Risk/Reward ratio of at least 1:2 (risk 50 pips to gain 100 pips).






📌 2. Rely on Analysis



  • Combine Technical Analysis + Fundamental Analysis.
  • Identify the main trend before entering.
  • Avoid trading against the trend unless you have a strong setup.






📌 3. Trading Psychology



  • Avoid greed and fear, the two biggest reasons for losses.
  • Don’t do revenge trading after a loss.
  • Stick to your plan even if the market moves against you temporarily.






📌 4. Clear Strategy



  • Have a defined entry and exit strategy (tested with backtesting).
  • Don’t change strategies every day—consistency is key.
  • Test on a demo account before going live.






📌 5. Trading Time



  • Best times: London & New York sessions (high liquidity).
  • Avoid trading during major news events unless you are experienced (e.g., FOMC, NFP).






📌 6. Leverage Management



  • Use the lowest leverage possible (1:10 or 1:20).
  • Avoid high leverage (1:500, 1:1000) because it can cause quick margin calls.






📌 7. Review & Learn



  • Keep a Trading Journal: record why you entered and exited each trade.
  • Review your performance weekly to improve.
  • Stay updated with global markets and economic events.





🔑 Formula for success in Forex:

👉 Discipline + Risk Management + A Clear Trading Plan


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