Forex Money Management

In general my forex money management rules are Never risk more than 5% (maximum) on any trade.
When I started with a smaller account of $2000 I risked 5% and then reduced this to 3% as my account grew to $10.000. I have since reduced this again and now 2% is my limit.
If you take two $ trades or correlated* trades at the same time then 5% is the maximum exposure you should have for both trades.

Only risk 2.5% maximum if its a counter trend trade.

ALWAYS plan and place a stop loss.

Always plan your exits BEFORE you enter the trade. If 2 trade strategy, plan 1st target & move stop to entry on 2nd – then depends on your philosophy as to whether you set a secondary target or just let it run

Do not take trades with a less than 1: 2 risk reward ratio ie If your stop is 30 pips,make sure that the trade has a good chance of making 60 pips. Therefore you need to make sure that no major emas are in the way. A double top or bottom.

If you lose 2 trades in a row, reduce your risk to 2.5%

If you lose 3 in a row STOP for the day & analyse where you went wrong. Start again at 1.5% or go to a demo, BUT trading by the rules.

After 3 wins in a row go back to 2.5%.

Once you get back to a 60%+ win ratio, go back to 5% maximum