To trade forex you need a trading capital, which is not necessary as big as if you were to trade stocks but still you need something. So, to start, allocate the funds for your forex trading.

Since you have the capital now, open an account with the broker of your choice (don’t forget the conformability with the platform is essential).

Now, while you’re money is being transferred to your new account and the account being set up, find you’re most comfortable place, sit down and start writing the three main money management rules as follows:

- You never enter a position that risks more than 2.5% of your trading capital
Write it down and let it sink in– you must take this as it was hardwired to your brain. This rule is essential for you if you want to be part of the 5% of forex traders that make money.

- Set your annual goals of how much you want to earn. Aim for a goal of 15%-20%
I know you heard of people making that much in a week, and trust me they did, one– week out of 52 weeks a year, and closed annually with way under that – 15% to -20% (Note: that is negative 15% to 20%), most of them -50% to 60% and a good portion even lost it all. They are called scams.
Now, there will be months and years that you’ll beat your own expectations, but also months and years that you’ll lose. So earning 15% - 20% a year it’s pretty damn good if you ask me and also you’d be doing better than most money managers out there.

-Promise not to break the two above rules
Since you have the two above rules ‘written in stone’ now write in bigger letters that you’ll commit no matter how good the market feels you will never break rule #1, and no matter how greedy and wishful you feel you won’t brake rule #2.

So write these Money Management rules like this:

  1. I will never risk more than 2.5% of my forex trading capital on one trade
  2. I am expecting to have a decent 15% - 20% annual return
  3. No matter what, I will never break Money Management rule #1 and #2.

Print them on a nice paper and place it where you can see– next to your trading station,  so you always remember them when trading.