Trade with money you can afford to lose
Trading FX markets is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are 'involved with your money' the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need to survive should never be traded.

Identify the state of the market
What is the market doing? Is it trending upwards, downwards, is it in a trading range or etc? Is the trend strong or weak? Getting a clear picture of the market situation is laying the groundwork for a successful trade. THE TREND IS YOUR FRIEND; this basically means that if you're in the right direction with a strong trend you will make successful trades. Do not buck the trend. When the market is bullish, go long. On the reverse, if the market is bearish, you short. Never go against the trend.

Plan your Trade & Trade your plan
Determine what Time frame you are trading on. You must have a trading plan to succeed. A trading plan should consist of a position, why you enter, stop loss point, profit taking level, plus a sound money management strategy. A good plan will remove all the emotions from your trades. Trade is like playing chess, Winner is who plays with a plan and thinks before each moves.

Time your Trade
Timing your move means knowing what's expected and taking into account all considerations before trading. Technical analysis can help you identify when and at what price a move may occur.

Know when to cut Loss
If a trade goes against you, close it and let go. Do not hold on to a bad trade hoping that the price will go up. Most likely, you end up losing more money. Before you enter a trade, decide your stop loss level. It depends on your risk profile as of how much you should set for the stop loss. Stop loss should be selected carefully, stop loss level is as important as entry level but it shouldn’t be selected so tight without any technical reason.

Hit your stop:
First stop loss is the cheapest stop on a losing position. Do not change your stop loss because you will lose more. Do not follow ‘hang into’ a losing position that has gone trough your stop loss level. It might work a few times but one day you’ll be hammered if you continue the same. 

If in doubt, stay out:
If you're unsure about a trade and find you're hesitating, stay on the sidelines. Sometimes, doing nothing is the best thing to do.
DO NOT TRADE BASED ON A TIP FROM A FRIEND OR BROKER. Trade only when you have done your own research and analysis. Be an informed, sharp and active trader.

Accept losses, they are a part of the game
Prepare yourself mentally and emotionally for the losses, this is a part of trade. But do not try to cover it with another transaction. Do not fight with the trend or the market.

Trade like a guerilla warrior
You must learn to adapt quickly changes. Be ready for sudden and unexpected things to happen.

Be Emotionless
Two biggest emotions in trading: greed and fear. Do not let greed and fear influence your trade. Trading is a mechanical process and it's not for the emotional ones.
As Dr. Alexander Elder said in his book trading for a Living, if you sit in front of a successful trader and observe how he trades, you might not be able to tell whether he is making or losing money. That's how emotionally stable a successful trader is.

Buy high>Sell higher … Sell low>Buy lower
Objective is not to buy at the lowest level and sell at the highest level. You can enter the market anytime you are sure that you know the trend and then follow the trend.

Do not make a winning position loss
Use trailing stop losses. You might profit less, but you won’t loss.

Think fundamental and trade technical
Make sure that you always have a fundamental reason behind your investment Ideas. If you’re technical and fundamental ideas both went to the same direction, then enter the market.

Trade logical transaction sizes
Margin trading allows the FX Trader a very large amount of leverage, trading at full margin capacity can make for some very large profits or losses on an account. Scaling your trades so that you may re-enter the market or make transactions on other currencies is generally wiser. In short, don't trade amounts that can potentially wipe you out.
FOCUS ON CAPITAL PRESERVATION. Do not trade more than 10% of your deposit in a single transaction.

Market expectation
Market expectation relates to what most people are expecting as far as upcoming news is concerned. If people are expecting an interest rate to rise and it does, then there usually will not be much of a movement because the information will already have been 'discounted' by the market, alternatively if the adverse happens, markets will usually react violently.

Keep a Trading Journal
When you buy a currency or any item, write down the reasons why you buy, and your feelings at that time. You do the same when you sell. Analyze and write down the mistakes you've made, as well as things that you've done right. By referring to your trading journal, you learn from your past mistakes. Improve on your mistakes, keep learning and improving your skills.

Do Not Overtrade
Ideally you should have maximum 3-5 positions at a time. Not more. If you have too many positions, you tend to be out of control and make emotional decisions when there is a change in market. Do not trade for the sake of trading.

Never add to a losing position
A losing position could be added in 2 ways: 1) cash deposit. 2) Opening another transaction. Both cases will cause more loss. At the first scenario you’ll lose your entire cash. At the second scenario, you’ll lose your entire trades.

Never leave your positions, watch the market and follow your positions
Incase of having open position do not leave it open without watching the market and trend. Follow trend, follow the market and follow your position. There might be need of immediate action.

Be honest with yourself
Accept your mistakes. Do not blame the market or anyone else. You are the one who decides when to enter the market and when to exit.