FOREX Rules

Here are some simple rules for beginners in FOREX trading.

FOREX traders should use the free demo account to study FOREX trading

Beginners must patiently study. Beginner FOREX traders may first test the demo account where they can study process, develop individual FOREX trading strategy. If their capability of making profit enhances day by day, this indicate that a beginner FOREX trader might draw up the real FOREX trading account. 

Use stop loss to reduce risk

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.

The account margin must be sufficient

The lesser the trading margin, the bigger the risk, therefore beginners must avoid letting the account margin be too little. Such account amount does not allow any mistake to happen. Even a well-experienced FOREX trader can make mistakes.

Record the trading details

The beginner should record all the trading details, whether there is certain news or other reasons that influence profit and loss. FOREX traders can not remember the history of every trade, therefore recording is helpful in enhancing FOREX trading skills.

Do not enter the FOREX market after making loss

Do not eagerly open a new reverse market position in order to recoup from loss. This will only make the situation worse. Do not play with the FOREX market by guessing.