Golden Rules

1. Plan ahead - Make your work plan in advance. Know the position size, the StopLoss Points and the TakeProfit Points (SL and TP) before you start to trade.
2. Play it safe - Do not risk over 2% of your balance. For example, if your personal balance is 1000$ and you enter a 10,000$ deal (10:1 leverage), the maximal SL point will be 20 Pips which equal 20$ (2% of 1000$)
3. One pair at a time - It is better to focus on one pair than try to "conquer" many pairs.
   That way you could allow yourself to consider any new financial data or event cncerning the relevant pair
4. The trend is your friend - Trade in correlation with the trend: Do not buy in a downward trend . and do not sell in an upward trend.
5. Cut your losses - While they are still small. Once you lose, do not keep on buying in the same direction, and hope the market will get your investment back.
6. Stop Loss, Stop Loss, Stop Loss - Never enter a position without giving a Stop Loss order. It is your last line of defense
7. Two indicators or more - Do not enter a position based on only one indicator. Look for other indicators that supports your assumption.

 Positioning stop loss order

The positioning of the SL has a crucial part in the success of a deal, since it will determine the maximal loss. The positioning is based on strategic points along the graph and is not based solely on the maximal amount loss (i.e. 2% of your balance).

How to position SLorder:

1. When opening a Long Position, place the SL in a lower rate than the position entering rate - Place the SL at the last trough point prior to opening the position.
2. When opening a Short Position, place the SL in a higher rate than position entering rate - Place the SL at the last peak point prior to opening the position.
3. Very Important! If the SL is over 2% of your balance, don’t make the deal.
4. The TakeProfit will usually be placed in a point where it will yield a profit at least twice as big as the maximal possible loss. We believe that one should be flexible when placing a TakeProfit. In any case, it is highly recommended to place one in every deal.