Posts Tagged ‘Losses’

Never take your revenge on Forex

Thursday, May 19th, 2011

Successful Forex trading doesn’t consist of how much money you are making, or if you can beat your last record. It doesn’t  consist on how much you trade on the volume that you trade or your account balance. Forex trading is all about making the right trades, following a simple trading plan, sticking to the rules that you made earlier (in your trading strategy), Forex is all about discipline.

Do not forget, the more money you have in your account balance, the more likely you are to sabotage yourself and to lose everything, especially when you get upset on your not so good trades. It is absolutely normal to by wrong, but be careful that your ego might come in to play and emotions then take control. You will get angry and you will want to get your revenge on the Forex market. In most of the cases, revenge trading is not good and will end up even worse.

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Posted in Miscellaneous Forex |

Basic Things About the Stop Loss Order

Tuesday, May 10th, 2011

One of the most difficult things in Forex Trading is stop loss management. A stop loss order is an order that stops you out of the market with the intention of minimizing your losses when the Forex market is moving against your position.

There is no golden rule to where a SL (stop loss) order should be set, it all depends on your trading strategy.

If your trading strategy is based more on day-trading, your could set your stop loss just below or above the daily high or lows. Therefore if the market moves out of the trend that you are trading and moves a lot in the opposite direction, your account is protected because your trade/trades are closed.

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Posted in Miscellaneous Forex |

Risk Management

Saturday, April 30th, 2011

Risk Management can make the difference between your survival and your “death” in Forex trading. You can have the best trading system in the world and still lose money without a proper risk management. The risk management is a combination of several ideas so that you can control the risk of your trades. It can limit your trading volume, can force you to make headging, can force you to trade only during some specific hours of a trading day, etc. And most important to know when to accept the losses.

Why is Risk Management Important?

Risk management is one of the key concept of Forex trading. It is a very simple concept to understand by traders, but is extremely difficult to apply. Forex brokers love to talk about the benefits of the leverage, and forget to talk about the down sides. This is making traders believe that they need to take big risks and target huge profits. It seems very easy for thous who have done it on a demo account, but once real money are at stake emotions comes in to play and things change totally. This is the part where a good risk management is very important.

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Posted in Risk Management |

Forex Scams

Sunday, February 21st, 2010

Popular Forex Scams

Forex scams can have many forms. Some of them can seem very convincing and legal. They all have in common the fact the traders are looking for that magic formula that can make them profits. Unfortunately, there are no easy answers. Below is a short list of the most common forex scams.

1. Signals sellers

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Posted in Did you know? |