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Welcome to Forex Trading Guide
Article
One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won`t stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven`t applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule. What happens if you don`t set a maximum loss? Let`s look at an example. If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable to experience three losses in a row. This would reduce my Forex trading capital to $700. What do you think those 95% of traders say at this time? They would reason, “Well, I`ve already had three losses in a row. So I`m really due for a win now.” They would decide they`re going to bet $300 on the next trade because they think they have a higher chance of winning. If that trader did bet $300 dollars on the next trade because they thought they were going to win, their capital could be reduced to $400 dollars. Their chances of making money now are very slim. They would need to make 150% on their next trade just to break even. If they had set their maximum loss, and stuck to that decision, they would not be in this position. Here`s a perfect illustration why most people lose money in the Forex trading market. Let`s start out with another $1,000 float, and begin our Forex trading with $250. After only three losses in a row, we`ve lost $750, and our capital has been reduced to $250. Effectively, we must make 300% return on the next trade and that will allow us to break even. In both of these cases, the reason for failure was because the trader risked too much, and didn`t apply good money management. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits. With your money management rules in place, in your Forex trading system, you will always be able to do this. About The Author David Jenyns is recognized as the leading expert when it comes to designing profitable stock trading systems. Discover the "secret formula" of trading that anyone can use to consistently generate BIG profits from the market by downloading your FREE copy of David's new Ultimate Stock Trading Systems course. Click Here To Download ==> Stock Trading Systems
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Sarkozy giving a thumbs up to the euro and an EU backing for Greece gave us a better bid tone before we started the market this morning," said Dean Popplewell, chief currency strategist, at OANDA in Toronto. "But with the lack of North American data ...
Read moreU.S. dollar down, markets eye Greece - Reuters UK
... analysts are saying: "The dollar is by default finding some support as risk aversion seems to be the dominant factor today," said Dean Popplewell, a chief currency strategist at Oanda Corp. "People are certainly still worried about the contagion ...
Read moreDollar rises versus euro and pound, falls against yen - Yahoo Finance
NEW YORK (CNNMoney.com) -- The dollar recovered losses versus the euro and rose against the pound, but fell versus the yen in quiet trading Tuesday and as equities declined. What prices are doing: The dollar gained 0.6% against the euro to $1.3549 ...
Read moreDollar mixed in quiet trading - CNN Money
... from high-yield currencies, as concerns over Greece's debt problems linger despite the country's plans to reduce its deficit, said Dean Popplewell, chief currency strategist at Oanda Corp. "There are a lot of variables in Europe that are ...
Read moreDollar firms against rivals - Yahoo Finance
NEW YORK (Reuters) - The euro rose slightly against the U.S. dollar on Monday as concerns about Greece's indebtedness eased, while U.S. equities ended little changed after last week's rally. U.S. Treasuries fell as investors prepared to absorb $74 ...
Read moreU.S. dollar down, markets eye Greece - Reuters UK
... from high-yield currencies, as concerns over Greece's debt problems linger despite the country's plans to reduce its deficit, said Dean Popplewell, chief currency strategist at Oanda Corp. "There are a lot of variables in Europe that are ...
Read moreDollar rises sharply - CNN Money
... an EU backing for Greece gave us a better bid tone before we started the market this morning," said Dean Popplewell, chief currency strategist, at OANDA in Toronto. "But with the lack of North American data especially after last Friday's ...
Read moreFOREX-Euro slightly higher vs U.S. dollar in quiet trading - Reuters
... an EU backing for Greece gave us a better bid tone before we started the market this morning," said Dean Popplewell, chief currency strategist, at OANDA in Toronto. "But with the lack of North American data especially after last Friday's ...
Read moreEuro slightly higher versus dollar - Maktoob Business
NEW YORK, March 8 (Reuters) - The euro was slightly up against the dollar on Monday as concerns about Greece's fiscal crisis eased after French President Nicolas Sarkozy said there are plans to support the debt-strapped country, if necessary. Gains ...
Read moreEuro slightly higher vs U.S. dollar in quiet trading - The Guardian
... a thumbs up to the euro and an EU backing for Greece gave us a better bid tone before we started the market this morning," said Dean Popplewell, chief currency strategist, at OANDA in Toronto. "But with the lack of North American data especially ...
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