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Three Simple Rules for Beginners of Forex

  • Have a plan for every trade. Before open your trade, have an explicit reason for doing so as well as a projection of what the market is going to do after you enter the trade. Do not place a trade if you just “have this feeling”. Although intuition may work for experienced traders, your "beginners luck" may have expired long time ago.
  • Place a stop loss and do not modify it because you just “have this feeling”. The stop loss takes you automatically out of the market if the price moves against you. This insures your winning trade from becoming a loss.
  • Calculate profit and loss targets. This allows you to set up a reward-to-risk ratio. This ratio is often equals to 3 to 1.