Money management rules (How to avoid losing your first/next Forex account)

Hi Sarah,

Could you please share what kind of scalping system do you use.
Thanks in advance
RH

good
think one needs this, confidence is capital

This site is great, thanks to the 3:1 explanation.

Forex 10 major rules by Osama Bin Ishrat :

1. Look risk before trade and don't look on profit or number of pips .
2. Keep in mind your risk level that how much money you are going to loose per trade.
3. For long trade always use ,:3 or 1:4 means low lose and high profit .
4. Use trailing stop if you are use to or place S/L at break even when you're in profit.
5. S/L should take place on each trade. this is the point where a lot of peeps loose their account in a while.
6. For beginners risk should be 1-2% per trade.
7. Do not increase lot size in start , always increase volume when your deposit is double. Example:If your deposit is 300$ you should start trade with one point = 0.01
If your deposit reaches 600$ you can increase lot size = 0.02 and so on...
8. Study chart patters if you can or use indicators but prefer to use chart patters as they give more probability than indicators . How ever indicators can also give good result some times .
9. Never do trade when you're confused about chart pattern i.e whether it is head and shoulder or double bottom. Wait for a right pattern then start trade.
10. Never use risk reward ratio 1:1 , 2:1, 3:1 and so on. Means don't trade on low profit and high loss other wise it will emptied your account in few days .

Thanks if you thought it is efficient for any one or beginners .
Osama Bin Ishrat
Pakistan

Never use risk reward ratio 1:1 , 2:1, 3:1 and so on. Means don't trade on low profit and high loss other wise it will emptied your account in few days .

Great information, thanks much

for me the best money management is maximum of 1% tolerable risk per trade...

I think risk to reward ratio should depends on your trading strategy! I used 1:1, trade once in a day on EurUsd.