The Ten Commandments Profitable Forex Trading

Every business have pros and cons. The forex market is not exceptional. The laws outlined here are the laws that guide me daily in my trading, I believe many professional and successful traders have similar rules. This is intended to guide you in forming your own laws.

1. Leverage maximum 1:100. Leverage is a two edged sword, it can be very helpful and can also spell woe for the simple minded trader. Many brokers induce their client with huge leverage so as to make the trader expose more than is necessary to trading, only to have their account wiped out when they have a draw down.

2.Maximum of 2% Risk per trade. Thou should not use more than 2% of your account equity in a single trade, no matter the opportunity provided by the market.

3. Thou should always use stop loss. Determine where your stop will be placed before entering any trade. When you do these don't move it if the market draws near it. Accept the stop as a wise decision and look out for another opportunity.

4.Trade what you see not what you hear. There is so much rumor about upcoming trend every single minutes by different signal providers and many market analyst.

These unfounded and many a times wrong assumption is responsible for the huge loss of many inexperienced traders. If you have opt in for many free or paid news and trade alert you will be very confused with the different suggestions of these "gurus", so my stand is this, trade what you see on your platform and not the rumors.

5. Never Enter a trade except indicators gives at least 70% confirmation. Many times your emotion want to get on the way of making wise decision. You assume the indicator will later confirm your decisions to be disappointed.

6. Never enter another trade except the first one is in profit. This will help to keep you calm thereby resulting in wiser decision. You will maximize profit if you enter another trade if you are already in profit in your first trade.

7. Never to underfund. Many broker want you to keep losing every little money you have by allowing you to start trading standard account with $200 or les. Under funding is one of the cause of emotional depletion and loss. Minimum for standard should be $1000, $500 for micro.

8. Never to rely on Expert Advisor. Don't be deceived by all the testimonial you read or hear about the different EA online. You will never become a successful and profitable trader using expert advisor.

9. Never trade under pressure. If you have issues, relational or financial try solve them first and ensure peace of mind. Don't try to meet a deadline. Rent, projects and others. Take forex as investment.Trade only with a portion of your investment funds.

10. Never over trade. You won't all the money out there by staying glue to your platform 24hours. Set goals before you begin any trading day, once the goal is reached give yourself a well deserved break and rest. Life is not all about money. Don't lose more important things in your quest to become rich quickly.