Limit Your Exposure

You should also never risk too much of your capital on a single trade. Forex trading is impossible without money. If you risk too much of it on individual trades, you will be rapidly wiped out. It is highly advisable that you only risk 1% to 2% of your available funds on any individual trade. Any single trade that you contemplate should be inconsequential to the total amount of capital you have at risk. If you are concerned about the size of the trade, that is a sure sign you are in over your head, and you should reduce your position immediately.