• Knowing FX trading rules will help you succeed at Forex trading$ Symbol and bar chart image by rolffimages from Fotolia.com
  
  According to Investopedia, the Forex (FX) market is the largest and most liquid market in the world with a daily traded value exceeding $1.9 trillion. Today, traders from all over the world can buy and sell currency in the comfort of their homes. That's why the Forex market is also the hottest market with the biggest number of traders. Knowing FX trading rules can help a lot when you first start your career as a forex trader.
  
  

Never Risk More Than 2 Percent on a Single Trade

• According to Investopedia, if you set a rule not to lose more than 2 percent on each single trade, it takes 10 consecutive losing trades to lose 20 percent of your trading account. Therefore, you have a higher chance of surviving in the Forex market. In trading, being able to survive long enough to experience the market in real time can affect your rate of success. No matter how experienced you are, you still need to adhere to this rule to make a success in the Forex market.
  
  

Use Trailing Stops to Protect Profits

• The Forex market is a very fast market. A trade which is a winner can easily turn into a loser in a matter of minutes. Therefore, you should use trailing stops to protect your profits. Trailing stops are stop loss orders that are set at a specific percentage below the market price--in the case of a long position--and vise versa. With proper trailing stop techniques, you can protect your profits and limit your loss. In addition, you can trade more than one lot to increase your earnings.
  
  

Be Disciplined

• Set up a trading plan and stick with it. Do not let your emotions overwhelm you. Be realistic when you draw up your plan. No matter how perfect your plan may be on paper, if you cannot trade it profitably in real conditions, with your own money, then you may have to revise it.
  
  

Rely on Both Technical and Fundamental Analysis

• Use both methods to study the market and make trading decisions.Fundamental analysis use economic and political news to forecast the trends of currencies in the future. Technical analysis uses past price movements to forecast future price actions. Fundamentals can be used to predict the direction of the currency for a long time frame. Technicals can be used for short time frame and for timing trades.
  
  

Enter the Market at the Right Time

• In the Forex market, being right but entering the market early means being wrong. Having the right entry at the right time can differentiate between a winner and a loser. To be successful at Forex trading, in addition to rightly analyzing the current trend, you have to pick the right entry point to enter the market.