The title of this article about winning while trading in the forex is really a “no-brainer” simply because nobody trades to lose and if they do, there is some strategic initiative behind it, some other “win” that motivates a losing trade. Taking this into consideration means also that when you get started trading the forex, there are a few keys to being successful or at least not losing as much as you possibly can. There are really two rules to getting started and then a few suggestions from personal experience and knowing what some of my own trading colleagues have done.
The first rule of trading is to never trade more than you’re willing to lose on a single trade. If you’re trading all you have and it goes south, you may be out the money you’ve got into the investment or into your principal or capital. There is a percentage of your principal that you should not trade more of on a given trade. This may be 1%, this may be 15%, but whatever it is for you, should be within your comfort zone. If you are trading with a $10,000 account, your 1% number would be $100. This means that you don’t trade more than $100 in any given trade. That if you lose that trade or the trade doesn’t go how you want, you get stopped out at that $100 mark.
The other rule isn’t as much a rule, but a strong encouragement as a means of producing the most success possible in forex and that is to start with demo account. Not only starting with the demo account, but keeping that demo open always trying some new strategies or leveraging some automated trades, perhaps through a forex expert advisor or some other program.
The last suggestion I have is to get a strategy and follow it, attempting to keep the emotion out of the trading decisions as much as possible. Whether you are a technical trader attempting to read the forex indicators or whether you are news trader or something in between, having a strategy and sticking to it will help you insure success.