

Two Timeless Rules in FOREX Investing
Adrian Pablo
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).
All traders have to face it - you can't turn a donkey into a ferrari. You can't change the strips of a zebra 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 my website 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 Placing 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 me a FOREX trader who doesn't use stop loss orders and I'll show you someone who loses a lot of money.
About the Author
Adrian Pablo; Forex trader and freelance writer.
Nov 20 - Forex Trading Signals Update: Volatility Has Dropped, Look to Range Trading Strategies Nov 17 - Forex Trading Signals Update: Momentum Strategies Outperform, But Range Maintains Upper Hand Nov 13 - Forex Trading Signals Update: Market ...
Read moreNote: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement . Please read our privacy policy and legal disclaimer . Trading foreign exchange on margin carries a high level of risk and ...
Read moreNote: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement . Please read our privacy policy and legal disclaimer . Trading foreign exchange on margin carries a high level of risk and ...
Read moreUSA, PA, New Freedom, Nov. 14th, 2008 - Forex Autopilot launches it’s Forex Robot trading tool that’s raising a lot of eyebrows. A new Forex expert advisor that’s literally making intra-day trading extremely easy for even the novice and ...
Read moreSAO PAULO, Nov 14 (Reuters) - Brazil's central bank sold about $689 million in dollar swap contracts on Friday as part of an ongoing effort to add liquidity to the foreign exchange market and meet demand for the U.S. currency. The bank sold all 14 ...
Read moreHONG KONG: The Hong Kong Monetary Authority said Wednesday it pumped 600 million US dollars into the forex market to defend the local currency's peg to the greenback. The de facto central bank said it bought 4.65 billion Hong Kong dollars worth of US ...
Read moreThe new and upgraded Forex software trading systems are more sophisticated than they have ever been and are helping currency investors accumulate profits at a higher rate than ever before. The top private investors in the Foreign Exchange Markets are ...
Read moreLONDON, Nov 19 (Reuters) - The dollar inched up against a basket of major currencies and the yen strengthened broadly on Wednesday as deepening unease about the world economy put stock markets back under downward pressure. Asian and European stock ...
Read moreLONDON, Nov 19 (Reuters) - The yen strengthened broadly while the dollar steadied on Wednesday as deepening unease about the world economy put stock markets back under downward pressure. Growing concern over the U.S. auto industry, which is seeking ...
Read moreMUMBAI: The rupee ended lower against the dollar on Monday on demand from some importers, besides the fall in domestic share indices prompting many banks to buy the greenback. Liquidity remained comfortable, as overnight rates traded mostly in the 6 ...
Read more