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Main Rules For Successful Forex Trading

So when you start forex trading, what rules should you follow in order to be very successful? Besides, what are the important guidelines which are going to enable you to build a quite solid foundation for your home forex business? Moreover, what should you consider prior to even thinking of forex trading?

In fact, the following are several key considerations which have to be thought about prior to forex trading.

First of all, the actual size of your trading account with the forex broker. For sure, the larger your account, the more you are able to put on every trade. Well, I will always strongly recommend all forex traders to begin with a small account and then grow it until their level of confidence and competence really increases. Thus the key there is to minimize that amount of money which you put in and also let your very successful trades drive the business.

One more important key is the target which you have set yourself. Without any doubt, the biggest mistake which so many new forex traders, and also not so new, make is that they actually measure their current success based on the actual sum of money that they make. However, that I would suggest is not so good idea. And so your main target has to be increasing your profits by increasing the amount that is placed on a pip and setting a fixed number of pips.

Besides, we will talk about the trader’s appetite to risk or more particularly how much he or she is really prepared to risk on one single trade. In fact, at a very maximum, I personally would never trade more than five per cent of my account in one single trade. For sure, aiming to trade at one per cent definitely makes a lot more sense.

It is also necessary for you to have your successful trading strategy. So the main question which needs to be asked it, if you need to make say one hundred dollars or any other foreign currency per day, it is easier and simpler by searching for a growth of one hundred pips at one dollar a pip or ten pips growth at ten dollars a pip. Moreover, for so many beginners, it certainly seems initially better to go for one dollar pips.

And finally, we will mention the actual size of your stop-loss. Well, I utilize the actual size of my stop-loss to really determine how much I’m going to place per one trade. For instance, if my five per cent of my trading account is fifty dollars and I also have set myself a stop-loss of twenty five pips, then the amount that I will place per pip will be fifty to twenty five.

Before you decide to make a forex investment or start forex trading yourself, better find a nice forex book and read more about forex market – this will save you from lots of troubles and traps.

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