5 pieces of advice for Forex traders from Utusk
1. Never invest the money, you can't afford to lose.
In general I prefer holding positions for a day to a few weeks.
2. Don't use more than 5% of your deposit for trading simultaneously.
I think that using 5% of the deposit is the right sum for trading at one moment. Even if the market will move against your predictions, you won't lose your funds. After some unprofitable trades you will have enough money to continue Forex trading and moving forward.
3. Never trade just for the sake of trading.
There's often a time on the market when the trading situation is unclear. Currency pairs move around chaotically and without a clear trend. It's very important not to just trade for the sake of trading during such a time. Sometimes this isn't easy but you should learn to be patient.
4. Set right stop-loss and take-profit.
The level of stop-loss and take-profit must be clearly determined by your Forex trading system. In my trading system SL and TP are the same. The main thing is: SET STOP-LOSS. There are some situations when a trader can't fix the losses. So, stop-loss is the only way to save your deposit.
5. Keep self-control.
That's the main advice for all traders at all markets, not only at Forex. Emotions bore mistakes. Follow your trading strategy and never deviate from it. After an unprofitable trade don't try to play back immediately, that will only make the situation worse.