Key points
Previous  Next

- Don't risk more than 2 to 5% of your capital. Traders who risk more than 10% of their capital per trade are very rare.

- The minimum profit/risk ratio that who should use is 2:1. For example if you have a target of 50 pips, you should not risk more than 25 pips for the stoploss.

- You should buy dips on uptrends and sell peaks on downtrends. The main trading systems used in FOREX are those that follow trends (a popular saying in the market is "the trend is your friend"), or systems that buy or sell on breakouts.