I want to give some rules that you should always take care of.
as a forex trader since 2003, i made aot of mistakes, and learnt alot. I`m gonna give you the rules that help me alot to make profits in the forex and hope it will help you out to gain in this crazy market.
1. Start your day by reading reports from many providers. I suggest three web sites which it got good daily and weekly reports which its fundemental and technical reports >>>>
http://www.saxobank.com you need to register and its free.
2. Risk with less than 5% of your money.
when you go in a position, the stop loss if its was hitted, the lose should not be huge.
example: if my balance is 10,000$ , the maximum risk should be 500$ which its 5% of the balance, and then when i buy eurusd with voulme one at the price 1.2925 , and the stop loss is 1.2900 , and the stop loss was hitted then i lost only 250$ so i do still can do anouther position but the stop loss should be 25 pips or less.
3. When you want to do two positions and you have 3 pairs that you analysed eurusd + usdchf + audusd , then its better to do a position in audusd and eurusd or usdchf because if you longed and shorted eurusd and usdchf then the possibilty is 50% you win the two positions, 50% you lose them both , but when you go in with eurusd and audusd then 33.3% you gain them both , 33.3% lose them both , 33.3% gain one and lose the other.
4. Make your plans and strategy to use one ratio and don`t make positions with ratio less than 1/3 , about me i always use the ratio 1/3 , when i buy i try to go from a point which i think that the price should not break over 20pips , and when the stop loss is 20pips , the profit should be 60. when the price go with you to the half of profit and technically it broke a resistance or support then you should move your stop loss to the entry point + cash half of your possitions.
5. Don`t trade the news and stay out when there is important data to come out.
6. Try to make your chart simple as you can, i mean don`t make it full of indicators.
7. Learn and understand chart patterns and i suggest this great website: