 |
 |
 |
           |
 |
 |
 |
|
 |
 |
|
|
|
 |
Two Timeless Rules in FOREX Investing
RULE #1) ~ Cut your losers; let your winners ride. One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in FOREX land, and you should always know one fact: YOU WILL HAVE LOSING TRADES. Every FOREX trader does. The key to being a consistent, predictable, reliable trader is to, at the end of the day, add up more wins than losses. And, when you KNOW(based off your trading rules), without a doubt, that YES, indeed you are, in a losing trade, don't keep losing money (lowering your stop loss) just to *prove you are right* or your rules are wrong (however you want to look at it). Let's face it - you can't turn a sow's ear into a silk purse. You can't change the spots of a leopard and you can't turn chicken poop into chicken salad. The best trades are usually "right" immediately (the techniques, rules, methods and strategies you can learn in our resources list will be your best indicator for just what a "right" trade really is). Remember, people have been trading the markets for a hundred and sixty years. The smart traders know there's going to be another trade. Cut your loses short and compound those winning positions. RULE #2) ~ Thou Shall Not Trade the FOREX Without the Placing of a Stop Loss Order. When you place a STOP order, right along with your ENTRY order, via your online trade station, you've just automatically prevented a potential loss from "running" too far. Before initiating any trade, if you haven't already figured out at what point you would be wrong and would want to cut your loses or, at the very least, reevaluate your position from the sidelines, then you shouldn't be putting on the trade in the first place. Show us a FOREX trader who doesn't use stop loss orders and we'll show you someone who loses a lot of money. Omar Vargas
MORE RESOURCES:
Currency-Trading - Google News |
|
|
|
RELATED ARTICLES
Day Trading Success- The Key Is Survival Most new traders tend to focus just about all their time and energy on finding nearly perfect "setups", but trade setups, even very good ones, are *not* the key to successful trading. It's the *way* you trade your setups that keeps your losses smaller than your gains. Online Stock Trading: Freedom of Trade I remember the first time I started to trade online. It was just before the tech bubble of the late 1990's and the internet was still something new for most people. Forex Signal Services What are Forex signals? Forex signals are paid services offered by some brokers and independent Forex annalists. Companies that offer forex signals monitor and analyze the market for you, providing you with their data via desktop alerts, email or even SMS and pager alerts. 6 Critical Factors For Successful Trading Success in any profession can be broken down into a number of critical factors. Trading is no different. Forex Signal, Forex Signals Advice There are lot's of Forex signals providers out there. New Forex traders might be thinking of looking for a reliable Forex signals provider. A Look at Forex Market Makers The investor in the currency market takes for granted that a pair of currencies can be bought or sold at a moment's notice. Once an order is placed with a broker, the trade is executed within seconds. Disgruntled The following situation happens quite often to many traders. Look it over and see if it has been happening to you:You have been faithfully following your trading plan and the rules you've set for trading. Forex Options Market Overview The forex options market started as an over-the-counter (OTC) financial vehicle for large banks, financial institutions and large international corporations to hedge against foreign currency exposure. Like the forex spot market, the forex options market is considered an "interbank" market. Assessing the Opportunities Presented by the New Iraqi Currency Could it be possible that you are staring right into the most spectacular financial opportunity of the century? Operation: Iraqi Freedom will undoubtedly be a war marked in history for loss and tragedy, American victory, and the rise of a nation with a new democratic government. But could it also be a war historically remembered for the financial opportunity it created for the sharp investors who keenly recognized an ephemeral chance at the right time?The War on Iraq ended with a nation placed on the footstool of many new operations. Trade Exit - How To Cut Losses And Let Profits Run Cut your losses short and let your profits run. This is the essence of your trade exit rules. Forex Scams: How to Spot Them A Mile Away In recent years, investors have witnessed increased number of investment opportunities and offerings. While the complexity and success of these investment products vary, technological innovation has made the Forex market one of the fastest growth areas. Forex Market Overview "FX" is an abbreviation of "forex" or "foreign exchange." Foreign exchange is the largest and most liquid market in the world trading approximately $2 trillion every day (that's over 30 times the daily volume of NASDAQ and NYSE combined). Day Trading the Index Futures - How to Judge Good Entries QUESTION: If the SP futures fall through support and go straight down for another two points, and I want to get short, should I a.)enter immediately, b. Getting a Forex Trading Education Many Americans are interested in getting involved in forex trading. Before doing this, you should get a forex trading education. FOREX Trading Philosophy Keen on starting FOREX trading? Why would you not be? Many beginning FOREX traders are captivated by the allure of easy money. FOREX websites offer 'risk-free' trading, 'high returns' and 'low investment' - these claims have a grain of truth in them, but the reality of FOREX is a bit more complex. Where to Get Forex Training For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. Internet and Computer Systems in the FOREX Business With every passing year the interest in electronic trading is bigger, more especially trading shares and currency through Internet. A new profession came forward - this of the currency dealer. Adaptation to the Realities of the Market Do you think adaptation to the realities of the market is the most important thing?Many times in the past I've written about the need to adapt, the need to be able to change your behavior relative to the market because the markets are ever changing. I've stated that mechanical systems may be workable, but for only a short time relative to the life of markets. 10 Steps To Professional Day Trading Everyone trades a little differently. The trading method outlined below is MY personal approach to trading. Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career. You know the old joke:"How do you make a million in the stock market? Start with two million?"There is no way around it, risk and stock market fees are a part of trading that you can`t avoid. But, you can manage your risk.
|
 |