Trading forex in a highly leveraged account promises great earning potential but at the same time great risks. In order to safeguard your capital you need to have a forex management system in place.

Here are 10 proven and tested rules that, if followed, will keep your capital safe and be a springboard to a profitable forex trading career:

  1. Never risk more than 10% of your capital on any one trade.
  2. Use stop loss orders. Never enter a trade without also placing a stop loss and never remove or modify your stop loss.
  3. Don’t overtrade. This means that you shouldn’t trade just for the sake of it. Make sure that every trade you take is for a good reason and not just because it’s been a while since the last trade and your eager to enter the market.
  4. Don’t trade against the trend. Find out what the current trend is (up or down) and trade with it.
  5. If in doubt, get out of the trade and if don’t take a trade if your in doubt.
  6. Never let a profitable trade turn into a loss. Have a plan on how you will place your trailing stops and stick to your plan.
  7. Don’t close your trades to take a quick profit. Know your exit targets before you enter the trade and don’t exit the trade until it is reached. Taking a quick profit will work against you in the long term.
  8. Never exit a trade because you have lost patience.
  9. Don’t favor going long to going short, or vice versa. Go with the trend.
  10. Never sell because a new high is reached buy because a new low is reached.(szgvycinhm)
Source:www.forexflood.com

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