Basic rules

There are six basic rules to remember before you start to involve in any financial trading, there are:

1.  Know your strength! Which means you know how to use indicators to help identify if the currencies pair is in over bought or oversold stage.(It's a basic thing that will help you to decide your entry and exit position.)
2. Understand your opponent! Knowing the currency pairs that you are trading is very important. For example, AUD/USD (Aussie/ Us Dollar), Aussie is a commodity dollar like NZD (New Zealand Dollar). It is greatly related to commodities.Any increase or reduce in demand of commodities will have an impact on it. You can't expect a change of policy in Singapore to have impact on Aussie, right?
3. Know your terrain! Without knowing whether it's a trend or non-trend market condition can be deadly. By understanding it, you'll know where to position your army and when and where to retreat! (It's not difficult to identify, really! Can visit http://forexoceanview.blogspot.com/
4.  Calculation of risk! Before any entry, do some calculation on anticipated damage you can adsorb! (Which means where is your stop loss level!) If the entry after calculated proved too much of a risk, then think thrice before you declare war! (Calculate where the support & resistance are, and how far are the price is away from it.)
5.  Discipline! Have you ever seen an ill-discipline army win any war? It's the same thing in forex war-game. By following the rules mentioned above is discipline! Never hesitate to retreat if the damage had reached your calculated level. By holding your position and in hope of miracle will create more damage. That's why they discipline is very important.
6. Logistic! It's a very simple rule to understand. It's about how much you want to invest as capital! So say a standard account for AUD/ USD is $2500.00 for one lot & mini account is $250.00/ lot. How much are you willing to use as capital for investment, and not to forget to add the percentage of risk you are willing take. Secondly, you need to learn how to manage your profits. (Always remember, you are not suppose to risk your initial capital. As long as there's still capital in your account, you'll be able to go back to forex field and declare WAR!)