FOREX Money Management - The Key To Long Term Profits
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
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Showing posts with label forex experience. Show all posts
Showing posts with label forex experience. Show all posts
FOREX Money Management - The Key To Long Term Profits
Tuesday, March 24, 2009 forex experience, Forex Information, FOREX Money Management, Forex Quote, Forex Scalping
Online FOREX Trading Tips For Big Profits
Thursday, March 19, 2009 Forex Day Trading, Forex Education, forex experience, Online FOREX Trading
Online FOREX Trading Tips For Big Profits
by Yusoff Allian
Fortunes can be made (and lost) on the FOREX market, but patience and a little bit of common sense can help you succeed where almost everyone else fails. The simple FOREX trading tips outlined below will help get you on the path to big profits in the FOREX market while at the same time reducing your losses. And you *will* suffer losses - it's a fact of life in the FOREX market. What separates the successful FOREX investor from the burnout is the successful FOREX investor understands this and plans for it, while those that don't quickly lose their shirt.
FOREX Tip #1 - Start with at least $1000 ready to trade. Although you can open micro accounts for as little as $200 you really won't be able to weather any turbulence in the market with so little investment capital. Start your online FOREX trading career with a minimum of $1000 in a micro account, and once you've made $10,000 roll it into a mini account and see your profits really pick up.
FOREX Tip #2 - Use leverage wisely. The ability to control large sums of currency with small amounts of cash is one of the major advantages of FOREX trading, but if not used correctly you can quickly blow through all of your investment capital. Make smaller trades to start with, and keep enough cash in your account so that you can withstand the occasional margin call.
FOREXT Tip #3 - Use a winning FOREX trading system. Seems like a common sense thing to say, but jumping in and spending thousands of dollars on the first trading system you find online can leave you penniless and none the wiser. You're far better off creating your own system (it's really not that difficult) and applying it to your trades. You'll learn how to recognize trends, when to get in and exit, and you'll be able to understand why a trade works one day and why it didn't the next. Using this knowledge you can modify your FOREX trading system accordingly - if you had simply purchased a system online you'd be stuck with what they gave you.
FOREXT Tip #4 - Manage your risk. You make money on the FOREX market based on two events - when you buy and when you sell. Discipline is key when determining when to get out of a trade, so set up stop losses at reasonable positions in line with your trading system and *always* follow your system. There may be times you're tempted to get out early, but don't deviate from your system. If you set your stops wisely you'll manage your losses over the long run and end up turning a decent profit.
FOREXT Tip #5 - Practice, practice, practice! If you're just getting started in the FOREX trading world you may be seeing dollar signs dancing around your eyes, and yes it is possible to make some really nice profits by trading currencies. However, as with any kind of investing, if you jump in without really knowing what you're doing you'll quickly lose your money. Most online FOREX brokers offer demo accounts that let you trade with fake money using real data - take advantage of this and fine-tune your FOREX trading skills. Get comfortable with your trading system and work on your discipline, and only move up to real money trading when you're consistently making winning trades in your demo account.
by Yusoff Allian
Fortunes can be made (and lost) on the FOREX market, but patience and a little bit of common sense can help you succeed where almost everyone else fails. The simple FOREX trading tips outlined below will help get you on the path to big profits in the FOREX market while at the same time reducing your losses. And you *will* suffer losses - it's a fact of life in the FOREX market. What separates the successful FOREX investor from the burnout is the successful FOREX investor understands this and plans for it, while those that don't quickly lose their shirt.
FOREX Tip #1 - Start with at least $1000 ready to trade. Although you can open micro accounts for as little as $200 you really won't be able to weather any turbulence in the market with so little investment capital. Start your online FOREX trading career with a minimum of $1000 in a micro account, and once you've made $10,000 roll it into a mini account and see your profits really pick up.
FOREX Tip #2 - Use leverage wisely. The ability to control large sums of currency with small amounts of cash is one of the major advantages of FOREX trading, but if not used correctly you can quickly blow through all of your investment capital. Make smaller trades to start with, and keep enough cash in your account so that you can withstand the occasional margin call.
FOREXT Tip #3 - Use a winning FOREX trading system. Seems like a common sense thing to say, but jumping in and spending thousands of dollars on the first trading system you find online can leave you penniless and none the wiser. You're far better off creating your own system (it's really not that difficult) and applying it to your trades. You'll learn how to recognize trends, when to get in and exit, and you'll be able to understand why a trade works one day and why it didn't the next. Using this knowledge you can modify your FOREX trading system accordingly - if you had simply purchased a system online you'd be stuck with what they gave you.
FOREXT Tip #4 - Manage your risk. You make money on the FOREX market based on two events - when you buy and when you sell. Discipline is key when determining when to get out of a trade, so set up stop losses at reasonable positions in line with your trading system and *always* follow your system. There may be times you're tempted to get out early, but don't deviate from your system. If you set your stops wisely you'll manage your losses over the long run and end up turning a decent profit.
FOREXT Tip #5 - Practice, practice, practice! If you're just getting started in the FOREX trading world you may be seeing dollar signs dancing around your eyes, and yes it is possible to make some really nice profits by trading currencies. However, as with any kind of investing, if you jump in without really knowing what you're doing you'll quickly lose your money. Most online FOREX brokers offer demo accounts that let you trade with fake money using real data - take advantage of this and fine-tune your FOREX trading skills. Get comfortable with your trading system and work on your discipline, and only move up to real money trading when you're consistently making winning trades in your demo account.
Forex Trading System - Beware of This When Choosing One!
Sunday, March 8, 2009 forex experience, Forex Signals, Forex Trading Strategies, Forex Trading System
Forex Trading System - Beware of This When Choosing One!
by kelly Price
There are a lot of forex trading systems for sale and most are junk. You can find out if a system is likely to make you money by looking at one key factor which is the subject of this article.
Let me ask a question first:
Would you take driving lessons from someone who hadn't past their test?
Of course you wouldn't!
With forex trading systems however traders buy systems that have never been traded and then wonder why they lose. If you are looking for a forex trading system online they will all give you a track record that's profitable. However the way to discard 95% or more of them is - to look for the disclaimer below or similar one - read it carefully:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
What this means is that a vendor can publish or make up any track record he likes knowing the closing prices and simply put this disclaimer on it. Most traders never question it - buy the system lose and then wonder why they didn't experience the same gains as the track record.
If you are looking for a forex trading system then always be cautious when you see the above disclaimer - you have to ask yourself the question:
If the vendor has not had the confidence to trade it why should you?
This is a very valid point and you need to use common sense.
In forex trading to many people are blinded by greed and see forex as an easy way to riches but of course with the rewards on offer its not that simple. You can make a lot of money but you need to get the right forex education.
The Route to Currency Trading Success
Forex trading requires you to do your homework - no one is going to make you rich only you can do that, so seek out sensible down to earth advice and learn it yourself and you can build your own forex trading system - which we will cover in our next article.
by kelly Price
There are a lot of forex trading systems for sale and most are junk. You can find out if a system is likely to make you money by looking at one key factor which is the subject of this article.
Let me ask a question first:
Would you take driving lessons from someone who hadn't past their test?
Of course you wouldn't!
With forex trading systems however traders buy systems that have never been traded and then wonder why they lose. If you are looking for a forex trading system online they will all give you a track record that's profitable. However the way to discard 95% or more of them is - to look for the disclaimer below or similar one - read it carefully:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
What this means is that a vendor can publish or make up any track record he likes knowing the closing prices and simply put this disclaimer on it. Most traders never question it - buy the system lose and then wonder why they didn't experience the same gains as the track record.
If you are looking for a forex trading system then always be cautious when you see the above disclaimer - you have to ask yourself the question:
If the vendor has not had the confidence to trade it why should you?
This is a very valid point and you need to use common sense.
In forex trading to many people are blinded by greed and see forex as an easy way to riches but of course with the rewards on offer its not that simple. You can make a lot of money but you need to get the right forex education.
The Route to Currency Trading Success
Forex trading requires you to do your homework - no one is going to make you rich only you can do that, so seek out sensible down to earth advice and learn it yourself and you can build your own forex trading system - which we will cover in our next article.
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
Monday, March 2, 2009 forex experience, Forex Information, forex signals services, forex trading, FOREX trading platform, Forex Trading Strategies
Forex Trading - 6 Character Traits That Cause 95% Of Traders To Lose
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
by kelly Price
Forex trading is all about having the right method but also the right attitude. Here we will look at 10 character traits that the losing 95% of traders have and if you want to enjoy currency trading success you need to avoid them.
Here they are in no particular order of importance.
1. I am not responsible
A symbol of losers - they think success will come with no effort on their behalf and blame everyone else for their failure from the tip they got from friend, newswire or broker, to the market being against them.
These people make up a surprising amount of the losing majority and they fail to see that no one can give them success but themselves. Instead of seeing this they do the following.
2. I Like to take expert advice
If you do be very careful as most of the people who put themselves out as experts on the net are anything but - their marketing companies and have never traded in their lives.
Again a vast amount of traders buy systems with unbelievable track records and then are surprised when they fail in real time (they never look at the disclaimer that says the track record is a simulation and not real). If something looks to good to be true it probably is and this is very true in forex trading.
If you follow an expert and have not done your homework on the logic they base their views on, then you are unlikely to have the confidence to follow their method with discipline when it hits a losing period.
If you don't follow a method with discipline then you have no method at all.
3. I don't like being wrong
Well in forex trading your going to be wrong a lot of the time, as only you can be wrong and the market price is always right - no matter what you or I think. Most traders hate taking a loss and looking stupid but the markets do that to everyone and even the best traders lose at times.
If you try and argue with the price and justify your position, you will run up losses and lose and your emotions will take over.
4. I deserve to win I am smart
I have met some very clever people in forex trading and the majority of them lose - if you think that being smart helps you then it won't.
In forex trading you get paid for being right with your trading signal that's it and it's a fact that the best forex trading systems are simple.
They work far better than complicated ones as they have fewer elements to break.
Clever people tend to over elaborate their trading and think the more they put in the more they get out but this does not apply in forex trading.
If you want to make money keep it simple and remember forex trading is probably 20% method and 80% mindset.
5. I am not a patient person
If you are an anxious or nervous person then you are unlikely to win at forex trading. You need patience to wait for the right opportunities and you need patience to hold positions through short term volatility to bigger profits.
If you are an anxious trader you will probably let your emotions get the better of you trade too much, engage in revenge trading etc and lose.
There of course other losing traits but the above are very common ones and hold anyone of them and you will lose.
Forex trading is not hard to learn anyone can do it but most fail because they don't realize that correct mindset is the key to success. To be successful at forex trading you need to rely on yourself, have a deep understanding of why your method works, so you can have the confidence to apply it with discipline.
If you understand the above you can avoid these common losing traits and get a mindset for forex trading success.
Forex Trading Secrets - Can You Really Rely On The Books?
Tuesday, February 24, 2009 forex experience, forex market, Forex Trading Secrets
Forex Trading Secrets - Can You Really Rely On The Books?
by Simon Aridej
As more and more people are considering investments as a way to take care of their futures, the forex market is booming. There is much material on the market, both in print and on the Internet, about the latest investment trend. Most of it boasts to offer forex trading secrets that are unique and can help the individual to succeed. Experience should tell consumers to be wary of such boasts, and yet individuals buy it like it is going out of fashion!
The question is, just how useful are the forex trading secrets that various publications offer?
The answer is dependent on the source of the forex trading secrets and the credibility behind their boasts. There are a number of sales letters on the Internet that offer to give a beginner forex trading secrets but those secrets can actually simply be an overview of how to trade on the forex market.
The problem is that nobody can distinguish between a book genuinely offering forex trading secrets from one that gives an overview of the concept until it is too late. A sales letter is designed to market an ebook without revealing the content and that is exactly what it does! It is not until you pay that you can distinguish the genuine forex trading secret books from those that masquerade as genuine!
Although there are fewer actual published books available on forex trading secrets than there are ebooks available on the Internet, a good number of them are worth investing in if you are looking for specific help in order to trade successfully. Forex trading secrets books such as Forex Revolution: An Insider's Guide To The World Of Foreign Exchange Trading by Peter Rosenstreich, can provide an amazing insight into forex trading secrets and is endorsed by the UK's Financial Times. This gives it far more credibility than an ebook on forex trading secrets could ever hope to achieve.
If you are looking for a cheaper option to learn the forex trading secrets and have a few hours to spare then there is always the option of trawling through the Internet articles and websites dedicated to the forex market and forex trading secrets. It can take quite some time to find useful tips, but the little gems that are present in articles that take up web space can revolutionize your forex experience. Just a few helpful secrets could increase your profits, as long as they are accurate and credible!
by Simon Aridej
As more and more people are considering investments as a way to take care of their futures, the forex market is booming. There is much material on the market, both in print and on the Internet, about the latest investment trend. Most of it boasts to offer forex trading secrets that are unique and can help the individual to succeed. Experience should tell consumers to be wary of such boasts, and yet individuals buy it like it is going out of fashion!
The question is, just how useful are the forex trading secrets that various publications offer?
The answer is dependent on the source of the forex trading secrets and the credibility behind their boasts. There are a number of sales letters on the Internet that offer to give a beginner forex trading secrets but those secrets can actually simply be an overview of how to trade on the forex market.
The problem is that nobody can distinguish between a book genuinely offering forex trading secrets from one that gives an overview of the concept until it is too late. A sales letter is designed to market an ebook without revealing the content and that is exactly what it does! It is not until you pay that you can distinguish the genuine forex trading secret books from those that masquerade as genuine!
Although there are fewer actual published books available on forex trading secrets than there are ebooks available on the Internet, a good number of them are worth investing in if you are looking for specific help in order to trade successfully. Forex trading secrets books such as Forex Revolution: An Insider's Guide To The World Of Foreign Exchange Trading by Peter Rosenstreich, can provide an amazing insight into forex trading secrets and is endorsed by the UK's Financial Times. This gives it far more credibility than an ebook on forex trading secrets could ever hope to achieve.
If you are looking for a cheaper option to learn the forex trading secrets and have a few hours to spare then there is always the option of trawling through the Internet articles and websites dedicated to the forex market and forex trading secrets. It can take quite some time to find useful tips, but the little gems that are present in articles that take up web space can revolutionize your forex experience. Just a few helpful secrets could increase your profits, as long as they are accurate and credible!
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