Forex trading rules for beginers II

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Forex trading rules for beginers II

25.07.2006 15:14 Tuesday

Use stop loss to reduce risk

In Forex trading, Forex trader must be able to afford taking loss, using the stop loss will prevent any further loss, the affordable loss depends on the account available margin situation. If there is a stop loss, Forex traders should not feel upset because he or she has prevented the loss from getting worse.

Act according to own ability

It depends on the margin in the account to decide the trading volume. Generally, all combine trading position should not surpass 10% the account margin based on this rule. It is not wise to over trade, is very easy to have the loss out of control.


The account margin must be sufficient

The lesser the trading margin, the risk will become bigger, therefore must avoid letting the account margin left only suffice 50 undulations levels, such account amount does not allow any mistake to happen, but, even a well-experienced Forex trader could also make mistakes.




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