he Forex market has Most people trade on hope and
changed through the years, fear, rather than facts. Rather
growing in volume and than basing their trades on what
expanding across multiple time the charts and the indicators
zones. actually say, these people trade
Brokerage houses have changed, on what they want them to say.
too, going online with They hang onto a losing trade and
sophisticated software and follow the graph down, hoping the
powerful servers.
currency pair will turn around.
Economic indicators and Or they exit a trade too soon,
technical analysis have become fearing the trend won’t last, and
more sophisticated, too, until are satisfied with pennies that
the Forex market of today bears even the best Forex money
little resemblance to what it management cannot balance against
used to be.
their losses.
But there’s one thing that
Other people lose through
hasn’t changed: most traders greed, by trying to pick the
lose.
highs and lows too nicely to
Despite all the advances in maximize their profits to the
the Forex marketplace, the ratio penny. Rather than waiting to
of winners to losers remains low. place a trade when the indicators
Experts agree that the most confirm the market’s movement,
hopeful number that can be they jump in too soon and are
advanced is a measly 10%, which disappointed when the anticipated
means that 90% of all traders on break-out never occurs.
any particular day will lose.
Remember, there is no magic
Experts also agree that the software or fool-proof trading
reason most traders lose is scheme. If you cannot control
because they allow their emotions your emotions, then you cannot
to cloud their judgment.
become a winner despite yourself.
But there are things you can do different than paper trading! But
to improve your chances of being this is no time to change your
one of the winners, and the most plan. To minimize the effects of
powerful is to follow these rules emotion, set a small, realistic
of Forex trading: initial goal and trade until you
Prepare a trading plan, using achieve your goal more often than
good Forex money management not. Use small sums in micro or
skills and the trading strategy mini accounts. Only when you are
of your choice—then trade your comfortable risking your cash and
plan. Don’t alter your plan or sometimes losing it should you
fudge your criteria if you don’t attempt to trade with larger sums
see a good trade for a few days; of money.
wait for the market to fulfill
Study your trading record and
your requirements before risking try to figure out what went wrong
your money. Remember the law of when you lost. To put it simply,
averages: sooner or later, the learn from your mistakes. That
market will come around.
alone will put you ahead of the
Use stops, and trailing stops crowd!
when possible, to control losses
and protect your profits.
Remember to set your stops far
enough away from the entry price
so that you aren’t closed out by type="text/javascript">
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