Sunday, April 20, 2008

Another article on forex trading broker

Hidden Secrets Of Forex

1. There is always a risk in Forex. That's the truth. There's a risk in anything.

Gambles go to casinos & Forex traders go towards online trading. Anybody that tells you, it?s a 100% Guarantee, is lying! Before you begin trading, make sure you put in some time and effort into studying the market + careful analysis. Any gamble is fun, except when you lose.

2. DON?T & I repeat DON?T ever put real money into a Forex account before
trading on a demo account.

The reason over 85% of newbie?s fail in the Forex market is due to quickly investing in a get rich quick Forex scheme. Make sure you get a demo account, play around with it, and perfect your skills upon it. Remember, it doesn?t cost you anything. So why not give it a try first? I guarantee you?ll be better off if you go with a demo account first

3. Never ever risk over 3% of the total trading account size. Ever!

Remember the guy that said never say never? he was wrong. I can confidently say, Never ever risk over 3% of the total trading account size. This is a key in separating the
Successful traders from the unsuccessful ones. I know its fun to put in more money, try to
make more; become rich? everyone loves that stuff. It?s not worth it. You may win a
few trades here and there. But overall, you WILL lose.

Raja Ramachandran


Set Yourself A Set Of Forex Trading Rules And Stick To Them

One of the biggest problems for the new Forex trader (and quite a few experienced traders) is that they are no real rules to Forex trading. Now in some ways that's one of the beauties of forex trading and it's nice to have the freedom to trade when you want to, to enter and exit positions whenever you feel like it, to increase or decrease an existing position and simply not to trade at all if you don't feel like it.

But within this freedom there also lies considerable danger.

No matter what we do in life there is no doubt that we do much better if we have a clear objective in mind and a roadmap to get us there. However, even though having a road to follow is essential, it is also important that we have a set of rules to follow to keep us on that road and to stop us from taking a wrong turning and ending up heading off course or driving up a dead end road.

In Forex trading there's no doubt at all that traders who follow a strict set of rules meet with far greater success than those who simply 'wing it'. Also, if you speak to traders who do follow a set of rules they'll tell you that, nine times out ten, when they have a bad day it's because they don't follow the rules and, when they have a good day, it's because they stick to them like glue.

The problem is that, since Forex trading doesn't really have any rules, you have to create a set of rules for yourself.

Now exactly what rules you will lay down for yourself will depend very much on your own trading plan and your rules will need to be reviewed whenever you update your plan - which you should do on a regular basis. So what sort of rules are we looking at?

Well, you might for example decide that you will never enter a trade without ensuring that you have a stop loss order in place. You might also decide that you will only enter a trade if certain analytical conditions are met. In other words, you will not enter a trade simply because you have a feeling about it, but will only do so if the numbers tell you that you should do so. In addition, you might decide when you are in a profitable trade you will move your stop when your profit reaches a pre-determined level in order to protect your position.

These are just a few ideas and your own list will need to meet your own particular trading strategy. However, whatever shape your list takes and however long or short it is, it is vitally important that you draw up a list, having thought about it very carefully, and that you then stick to it and also review it at regular intervals. is the ideal place to learn Forex trading and provides information on a wide range of topics including currency exchange rates and the benefits of testing the water through mini Forex trading.


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