eToro – Forex Trading Forum

[Tropezienne]

1. DO NOT EVER RISK TOO MUCH OF YOUR ACCOUNT ON ANY ONE TRADE.

2. DO NOT EVER RISK TOO MUCH OF YOUR ACCOUNT ON ANY ONE TRADE.

3. DO NOT EVER RISK TOO MUCH OF YOUR ACCOUNT ON ANY ONE TRADE.

No system, strategy or signal will be right 100% of the time.

Have a plan. Set a maximum amount to risk on any one trade. How much risk – 1.5%, 5%, 10%, silly% - is open to debate. Personal circumstance plays a role. I’ve read of traders who never trade more that 0.5% of their account – but if you can only invest 100$ at a time with your broker and if the minimum trade is 50$ – then there you go risking 50% ….

Stick to your maximum risk at all times. This is one of the first steps towards developing a solid and disciplined working plan for your eventual trading strategy.

As a beginner, trade ‘for fun’ only and do not switch to a real account too soon. Experiment with the Stop Loss feature on the eToro platforms.

A “Stop Loss” order will automatically close a position at a price decided by you. This simple action will minimize your losses should the market move in the opposite direction to that which you anticipated.

from Julie – a fellow newbie.

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