April 28th, 2010
Forex Classroom
Today I want to share some vital information that is going to make a huge difference to your trading
(if you do it), and it is the truth about what it takes to succeed in Forex. And we want you to succeed. So please take 5 minutes to read this important note.
So what is the difference between those who succeed in Forex trading long term and those who don’t?
Here is the cold hard truth…
- They haven’t developed the skills that actually pay you in Forex.
- They may have the good intent, the passion , the commitment and money to put into an account
- But… unless they have the skill they won’t make long term profits.
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February 23rd, 2010
Forex Classroom
I have been studying, trading and working for years with thousands of traders from all parts of the world, in live trading rooms, seminars, broking houses and trading floors.
I am confident these are the best trading tips ever because no matter who the trader is or what market they trade, or what country they live in, for the super successful, their answers are always the same!
#1. Money Management
As a trader you are frankly doomed from day #1 if you don’t commit to understanding money management and being able to manage your risk. It’s the #1 aspect of trading that is challenging to master but once you get into a rhythm of simply chipping away with low risk and high return probability, all you need then is persistence and you will learn a skill that 98% of traders never master. Don’t think about it, don’t acknowledge it, DO IT EVERYDAY you trade. You must commit to the risk on every trade and know what the outcome maybe if the trade moves against you. You must only be risking around 2% of your account size when you first start learning to trade and over time the market will present opportunities when the time is right to risk a little more. This will come with your experience and when your account can handle it. You must also preserve your capital at every opportunity. This does not mean getting out of a trade early or bringing you stop to break even after 5 ticks, this means being realistic and having a set of trading rules that stipulates that if your account is drawn down say 20%, you must immediately stop trading the account, re access and then continue once you have decided the time is right. Never as a general rule continue to trade a real live money account once drawn down below 20% of its starting value. At 2% risk that would mean you have taken at worst 10 losing trades in a row. I am sure you would agree that you would be hard pressed to do that if you tried, but you can easily risk 20% of your trading capital in one trade if you are trading with too much money or without a proper stop loss. Commit to learning money management and your trading account will thank you for it over time.
