Many forex traders start trading live before understanding and learning good money management rules. Develop a few good money management rules and practices them on your demo account before starting live trading. Developing your money management rules mean how much of your money, you are willing to risk on one trade. It also means determining how many contracts per trade your risk tolerance allows?
The choice of the right currency pair in forex trading is very important. Many traders make the mistake of shaping opinion around only one currency, ignoring the other currency in the pair.
It is of utmost importance for individual/retail traders to find the best currency pair to trade. As a retail trader, you will only have $1,000 to $10,000 in your trading account. For you, opportunity cost is a real cost as an individual trader. If you commit your funds to anyone currency pair, those funds cannot be used in other possibly more profitable trades in other currency pairs.
