The most important rule in FX is?

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What is the one and most important rule in FOREX to make one successful.
 
Control your risk.

Risk depends on your initial stop loss, lot size, and the value of the symbol. It does not depend on margin and leverage. No SL means you have infinite risk. Never risk more than a small percentage of your trading funds, certainly less than 2% per trade, 6% total.

  1. You place the stop where it needs to be — where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.

  2. AccountBalance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the spread, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)

  3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
              MODE_TICKVALUE is not reliable on non-fx instruments with many brokers - MQL4 programming forum (2017.10.10)
              Is there an universal solution for Tick value? - Currency Pairs - General - MQL5 programming forum (2018.02.11)
              Lot value calculation off by a factor of 100 - MQL5 programming forum (2019.07.19)

  4. You must normalize lots properly and check against min and max.

  5. You must also check FreeMargin to avoid stop out

Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5 or 0.1 Lots maximum.

 
the open orders of the amount is the key factor
 
Don't be greedy
 
First rule: ensure you have capital. (Look for prop firm for example)
Second rule: know what are you doing 
Third rule: hours of backtest


 
I think the first rule of Forex trading is to apply a good risk management strategy. You should only look to risk 1-3% of your account on each trade. This should include setting a stop loss and calculating your lot size carefully.
 

I don't think there are specific rules for a successful trader

There are factors, and people chose the way they use it, and it become their own "rule", and as a human, we can break the rules as well as impvove our rules

Some factors I can tell:

- Risk management like Dean has mentioned

- Trading style or trading setup that suits to you

- Trading time or market time that you can trade

- Discipline ability

These factors can create variables rules, the one that work for me might not work for you, just need to find the right factors that you can use, than build your own rule.

Happy trading!

 

Hi,

I just want to reconfirm that the most important factor is risk management without any doubt.

How you implement risk management is up to your strategy i.e. 

  1. carefully limiting lot size when trading
  2. stop loss either hard or soft
  3. limiting the number of trades open at any one time

This should all be in your TRADING PLAN and then you have something written down and can refer / adapt it as you go

Good luck

 
Do NOT risk what you can`t afford to lose.
 
To not hope in others help.
 
Being timely because it is all about time and setting stop losses as the second rule.
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