Million $ challenge Rules

These are an abbreviated set of rules that I apply to all my forex trading. They are slightly different in that we are dealing with much smaller stakes/starting amount than I normally trade. For example on my main forex account, the maximum I will risk on a trade is 2.5% of my trading bank.

Forex Rules

The most important thing that we need to do with our forex account ? Is to not lose the money that is in it! The preservation of our capital is our number one goal. To do that we have to follow the following forex rules.

	Never stake more than 5% of your forex account on any trade*
	Follow your system. Have a checklist of indicators/signals that are part of your forex strategy. Make sure all boxes are ticked before entering a trade.
	Plan your profit -1st & 2nd stage- Before placing a trade.
	Plan your stop loss (get out) before making a trade.
	Divide your stake in half & place 2 trades.
	Part of my system is to open 2 trades. Close/take profit at the 1st target area. Move the stop loss on the 2nd trade to entry or better & let the balance run to the 2nd target. This way you bank some of your profits & have a chance at catching the big moves as well.
	Accept you will have losses. Losses are part of forex
	Stop trading if you have more than 2 losses in one trading day.
	Never chase price. This is a big problem for many people. A candle starts to race in a direction and you dive in only to find it immediately reverses the other way.
	Keep a record of all trades (including screenshots) I use jing. Get your free copy here if you don't have screenshot software http://jingproject.com/ Alternatively if you use firefox there is a free screenshot plug in.
	Never trade if you dont feel 100%
	Never break any of the above forex rules & you will have a chance to make money in forex.
	Keep learning. Keep up to date with the news for the currencies you trade.

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