Money management

1. Always keep in your head that forex trading is risky. Trade only with money you can lose. Never give all your money to your trading account. You will be scary of lose, you will make bad decision and you lose all your money ... easy.

2. Maximum risk for one trade is around 2 % of your account. Never give more money to one trade ... NEVER ... even if you think that it is "sure bet" maximum is 2 %. It is crucial for successful forex trader.

3. Always use "stop loss" order. Never let one unsuccessful trade to ruin your account. Just take small loss and get out of the trade. It is part of trading ... unsuccessful trade mean nothing ... it is not your mistake ... even if you do everything right you will have many unsuccessful trades.

4. Your R:R ratio must be minimally 1:1 ... never take trade where reward is smaller than risk ... NEVER ... much better is R:R between 1:1,5 - 1:2,5. You don't have to trade trades where R:R is 1:10 ... in fact FXDD broker made research and showed, that trader who take R:R below 1:1 are in 95% unprofitable, trading with R:R cca 1:1 are in average around break even. And 60% of traders who take higher R:R are profitable. I don't know how much, but there was a curve and it showed, that there is no difference (in long term) between R:R 1:2 and 1:10