10 Golden rules of forex trading

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Forex markets can be volatile and uncertain at the best of times, and inexperienced traders can easily end up chasing their losses. Yet it is precisely this volatility that gives you the potential for major profits. These 10 rules of Forex trading may give you the best chance of landing on the winning side. Please remember, however, that trading carries a high level of risk to your capital and profit is not guaranteed.

The 10 Golden Rules Of Forex Trading:

1) Avoid Forex trading software that claims to guarantee returns. No Forex software can assure you of winning trades.
2) Always use a demo trading account. We have all heard that practice makes perfect, and it is true.
3) Forex trading can be highly stressful- avoid emotional trading. Whenever real money is changing hands, the risk of loss is ever-present.
4) Invest in a solid Forex education. Knowledge is power-we all know that. Forex tools will improve your trading performance.
5) You can learn to trade Forex successfully. Learn from reliable Forex strategist or mentors, you tubers, your success is far greater.
6) Manage your Forex capital wisely. Forex markets change hourly, session or daily characterized by high volatility . Use stop loss, entry and exits always.
7) Manage your investment-per-trade wisely. This is a crucial aspect of Forex trading. Never invest more than 2% of your account on one trade.
8) Use common sense. Strong currency against a weak currency. Major news. Use common sense when judging the effect of current/upcoming events.
9) Ensure you use risk management strategies at all times. Limit your amount you trade per position. Using knowledge, signals and technical strategies.
10) Be especially cautious about overextending yourself with leverage. Leverage is a two sided coin- can magnify profits and losses.

By following these 10 golden rules to Forex trading, you should find yourself in a much better position over the long term. Your focus should always be on trading currency pairs that you understand, in a way that does not expose you to too much risk. Read up about market conditions likely to impact upon the currencies you’re trading, limit your leverage to an affordable amount, and use a demo trading account to understand the market dynamics.