If you want to be an expert Forex trader you must know and remember the following trading principles:
- Do not trade with more than 10 percent of your account balance, this will help you hold your account if the trend is going against your prediction. If you are able to do this you will never lose your trading account balance again.
- Have a Trading Plan and do not over Trade. Some people think that they will make more profit when they spend longer time trading. If you do this you will lose your money, 6 hours a day or even less is ok. 7am to 10am and 7pm to 10pm is the best trading time except you are a news trader.
- Never open more than one trading position per time. This is the reason why some traders lose so much money. Once they see a trade position going in their favour, they tend to open more position of that same currency pair. The more position you open the less equity you will have and this can automatically close some trades in order to manage your equity. One trade per time is ok.
- Do not trade when you are not sure. It is not compulsory that you trade everyday, once there is no clear signal stay out, else you may run into losses.
- Never rely fully on a trade signal from a friend or Signal Website. Always check to see if the signal is correct before you follow it. Also you may get the signal late and take a wrong decision.
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