Risking 50% of your account equity is foolhardy no matter how sure you feel about the outcome of your trades. If 2 consecutive losses can take you out of the game you were never really in the game to begin with. 

A common method of controlling your risk is to only place a small percentage of your account equity on each trade. 1 to 3 percent is what is typically recommended. This gives you the ability to ride out those rough periods in trading when the Forex market and your trading system don’t quite see eye to eye. 

Your trading system will dictate what percentage of your equity that you risk per trade. How much you risk per trade should always be studied closely. If the amount is too small your account equity will grow much slower than it should. If the amount is too large…well we all know what can happen in that case.

Several forex brokers have education centers built right into them that explains, some forex terminology and forex indicators, this does not mean that they are the best broker out there or that a broker with no education center out there is a horrible broker, every broker has different pros and cons. The most important thing is to find a broker you are happy with and start demo trading try different systems, indicators, trade at different times of day set different limits and work very hard to get that demo money to grow.

So you’ve been trading your demo accounts and it is going great looks like your a forex wizard, your demo account is growing at incredible rate and you can’t wait to get your real money account off the ground and running.  Here’s the best advice I can give you SLOW DOWN !!! You can have great days, weeks even months, but just when you think “I have got this mastered” the forex market can turn and teach you a lesson.  Always input your stop losses and stick with a system you are comfortable with and don’t leverage too much of your account.

So what you are really looking for is experience in the forex marketplace before you get into buying a robot or investing a large amount of capitol, you need to know if you can trade successfully and a demo account with any broker is one of the best ways to find out.

Trade only with risk capital — you should only trade Forex with money that you can afford to lose.  This means that if the money is lost that it will not affect your lifestyle in any way.  Trading with money that you cannot afford to lose is also known as trading with “scared money”.  When trading with scared money beginning traders find themselves afraid to take losses.  Since losses are a natural part of Forex trading this means that they will eventually be afraid to take the trades that they are supposed to. 

Maintain your trading discipline — this tip goes hand-in-hand with having the patience necessary to follow your trading system to the letter.  Second-guessing yourselfor your trading system can easily have a negative effect on your trading performance. 

Don’t  search for the holy Grail of trading — there is no such thing as a perfect trading system which has 100% winning trades.  With this in mind understand that it is a waste of time and energy to seek out such a Forex trading system.  The most successful and profitable Forex traders in the world do not have trading systems with 100% winning trades.  That in and of itself should tell you something. 

The Forex trading tips that we have just reviewed have truly withstood the test of time.  It’s a good idea to review these from time to time to remind yourself to stay on track.  By staying on track and maintaining your trading discipline you will be well on your way to successful Forex trading.

Always control your risk — we all understand that there is no such thing as reward without risk.  It is important that you exercise strict risk control on each and every Forex trade that you make.  Improper risk control is one of the single biggest reasons that certain Forex traders fail. 

Never add to a losing trade — this is in a crucial part of controlling your risk.  When you have a trade that is in a loss do not move your predetermined stop loss.  Remember the fact that your stop loss is predetermined means that it is the size it is for a reason.  Adding to losing trades is a sure way to turn manageable losses into catastrophic losses. 

Exercise patience — remember that Rome was not built in a day and it is unlikely that your Forex trading fortune will be either.  Only take trades as dictated by your Forex trading system and do not attempt to “jump the gun” or “shoot from the hip”.  Remember that you are in this for the long term and that successful trading is a marathon and NOT a sprint.