Currency trading rules for a beginner.

Statistics show that no more than 15% of all participants in this free financial market achieve a stable profit in retail Forex. Yet, some currency traders earn over a million dollars a year.

This begs the question: "What is it that these 'few' lucky ones' know and do that's so special?" Nothing special. They simply strictly adhere to a set of internal trading rules.

And they adhere to them not just occasionally, but constantly, meaning every minute they spend in front of their trading system. Below are some of the rules from this set. They are useful for novice traders to follow, allowing them to develop their own trading principles over time.

1. Use investment capital for currency speculation that you can afford to lose.

It's not without reason that one of the key conditions for success in retail Forex is considered to be a state of internal independence. A trader should be exposed to a minimum of external factors during trading. First and foremost, they should be free from the fear of losing their investment. The foreign exchange market is not a place to invest "fearful" money.

2. Be honest with yourself.

A professional hoping for serious success must be objective about themselves. Only then can they reliably control their emotions. A successful currency trader is extremely focused and unemotional.

3. Start small.

A novice currency trader, having tested their trading skills on a demo account, should begin trading on the live Forex market with small trading volumes (no more than two Forex lots for a given pair at a time). It's important to understand the mechanics of trading before trading with serious money.

4. Don't overdo it.

A beginner in forex trading should keep three times more funds in their trading account than is required to open a specific position. If necessary, do not hesitate to reduce the position size to comply with this rule.

5. Don't rely on quick profits.

Those taking their first steps in Forex should avoid trading with inflated expectations. Overly relying on the market to constantly move in the "right" direction can lead to violations of basic trading rules.

6. Don't change your mind mid-trading.

A competent trader determines their actions before entering the market and doesn't change their original plan based on random exchange rate fluctuations.

7. Take breaks from trading.

Daily trading can cloud your vision and dull your thinking. A well-timed break helps a trader look at both the current state of the Forex market and their own trading actions from a different perspective and with a fresh perspective.

8. Don't follow the crowd.

A successful trader prefers independence. For example, when most Forex participants rush to open long positions , he opens short ones. The fact is that the crowd is usually wrong.

9. Block imposed opinions.

An experienced currency speculator does not succumb to others' influence and does not change their opinion under the pressure of someone else's authority. They believe in their own strength and do not follow the lead of others.

10. Stop if you are unsure.

A novice trader should not trade constantly. It even makes sense for them not to hold a position throughout the trading day. It is important to remember that holding a position daily and all day is too expensive for a beginner. In addition, the rules of trading imply self-discipline, a clear mind, a strong character, and determination.