Simple equation, don’t you think? Yet amazingly you hear that most traders, especially new traders, lose considerable amounts of money. Some, you might say, even lose the shirt off their back. Why? Well who knows the exact reasons? The fact remains, these traders lose more than they win. Now, you don’t want to be one of these traders, do you?
Listen, I don’t want to scare you away from Forex trading altogether. Forex is a fantastic vehicle for generating an income or generating large amounts of cash “on call”. And, like any investment involving your money, there are risks involved. The key to trading Forex (foreign currency exchange) is to minimise these risks.
So how do I minimise my risk? Good question. Well, you can start by educating yourself on the FX market, doing your homework on FX techniques and equity management, and regularly practising what you learn. Then refine, and keep refining these techniques until you consistently make more money than you lose. A huge bonus with trading Forex (compared to say, trading traditional stocks) is that it can be practised online in a demo account, in real time. The demo account simulates real market activity, only you don’t get to keep the profits (or wear the losses). What a marvellous way to learn! And once you master these FX trading techniques you can apply them to a live account, trading with real money, making real profits.
As a Forex trader there are many tools you need in your toolkit – your bag of tricks. One of my favourites is applying good equity management. Live to trade another day! Simple but true, isn’t it? Another way of saying this, is don’t blow all your money on losing trades, or worse still, losing all your money on one trade. Don’t laugh, this does happen. Trading on emotion, and/or trading without a good education, can be hazardous to your bank balance. By staying focused, remaining disciplined and knowing when to trade or not to trade can contribute to your overall success or failure. For example, when is enough, enough? You suffer two, three, four, five, six or more losing trades in a row in one trading session? When should you have stopped trading? Come on, be honest! Or would you still be trading saying, “My luck/the market has to change soon?” What was it I said earlier, “Live to trade another day!”
Remember, all traders lose money! No one has a perfect 100% winning record. The difference between success and failure as a Forex trader is simply winning more than you lose. I’ll repeat this – trading Forex successfully means you WIN more than you lose. To improve the odds in your favour, take action today. Get a good education and learn how to become the successful Forex trader you deserve to be. Forex profits are there for the taking. ARE YOU GETTING YOUR SHARE?
Thank you, good luck and here's to your Forex success!
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