5 Trading Rules Every Beginner Must Follow

Want to survive in the market longer than a few trades? Master these 5 beginner trading rules.

1. Define Your Maximum Risk Per Trade

Always decide your loss amount before you enter the trade.

✅ Risk only 1% to 2% of your total capital per trade.

✅ For example, if your capital is $1000, don't lose more than $10–$20 in one trade.

This small control saves you from blowing your account.

2. Stop Loss Should Follow Logic, Not Emotion

Don’t place stop losses randomly. Let structure define them.

✅ Use price action zones: demand/supply, candle traps.

✅ SL should be placed below/above invalidation levels, not tight round numbers.

A smart SL protects you. A random SL destroys you.

3. Avoid Overleveraging

More margin = more risk = faster loss.

✅ Start with low leverage (1x to 3x).

🚫 Never use 10x+ leverage as a beginner.

Remember: Compounding profits > gambling with size.

4. Size Trades Based on SL Distance, Not Greed

Don’t randomly choose lot size. Size it based on your stop-loss.

✅ Use a Position Size Calculator.

✅ If SL is big, reduce lot size.

If SL is small, increase size within risk limit.

This ensures constant risk exposure per trade.

5. Don’t Revenge Trade or Overtrade

Losses hurt, but don’t chase your loss with another impulsive trade.

✅ Take a break after a loss. Breathe.

✅ Review your mistake. Wait for clean setup again.

🚫 Overtrading increases risk. Stay disciplined.

Final Thoughts:

Trading is not about being right all the time — it’s about risk control, mindset, and consistency.

Start with small capital. Build confidence. Respect risk.

📌 Trade like an institution, not like a gambler.

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