Money Management

Always remember to place a protective stop loss order immediately after entering the Forex market. Having a real protective stop loss order, the market should not allow a significant loss in trading.

In general, you should never risk more than 5% of your trading capital in any trade.

The best way to do this type of day trading is by setting a weekly goal. If you set a goal such as at least 100 pips per week, which is well below the average weekly earnings, it becomes easy to achieve this very reasonable on a consistent basis.

As you start to experience in achieving its profit goals of the week, you will inevitably increase your earnings targets every week. Trading more to earn more points in order to increase the profit is not the right way.

The best thing to manage your trading capital and risk is to based upon you studies. When you start trading a one mini contract, withdraw some percentage of your profit to reward yourself and leave the rest of your trading account. The percentages vary depending on your needs in trading. Since you're awarding yourself, you can also build your own capital to the point where you have enough margin to add one of your contract to your trades. Remember, just because you have the margin to trade more, you should not allow yourself to break the 5% capital risk rule.