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What is the one and most important rule in FOREX to make one successful.
The entire rules can be summarized thus: Never lose money/capital or alternatively reduce losses to the lowest minimum
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 risk 4%, should I feel guilty? :-)
In business they say anything is profitable if you can bank roll it till it breaks even.
Same applies to Forex.
Same old ish just a different market :-)
Have a strategy that works, one that has been tested in a multitude of conditions. The strategy needs to be stress tested to find fatal flaws.
Risk comes second since it is tailored around the strategy. You can control risk all you want but if you do not have a strategy that is sound, it is pointless.
In addition to RM (e.g. ATR SL), MM, TM:
You cannot trade similarly flat & trend! Be able to distinguish them for the purpose to switch-on the appropriate TS.
Rate of Exchage reacts the last on economic falls - 0.5-2 years later then it occurs... (first reacts Treauries)... therefore do not wait quick reaction on the world analytics/news... (Know the driver of the market at the moment not to be misleading by the rumor!)
Do not trade low-liquid markets (but forex will never show you the real liquidity)
Know the Background
See Who is Rushing (B or S)
Trade Imbalance at Levels
N.B. confirmation with volume (but forex will never show you the real volume)
Time-management is as well of importance as RM, MM, TM
... think like a Pro (& sometimes like a Market-Maker) -- it means that smart-money are being present in the both opposite sides of the trade!
Do not trade when there is nobody in the market. Join to the smart-money.
What is the one and most important rule in FOREX to make one successful.