Stop, Stop, Stop!

When trading the financial markets always use a stop loss to protect your trading account capital.  This is especially important when trading the Forex (Fx) markets, when there can be sudden big moves due to fundamental news announcements.

It is often said that ‘the best stop is a great entry’, meaning that as soon as you enter the market, price moves in the direction of the trade and never goes near your stop.  This takes time and practice to achieve but is a laudable target to aim for.

I also remember being at an International Traders Conference a few years back and trading live with some top traders and as the novice traders inevitably asked the question ‘Where would you put your stop?’, you could see the expert’s eyes glaze over!

So to answer that novice’s question and put it to bed, here goes …… Continue reading

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Key Steps to Forex Trading Success

The following are my thoughts on what I believe are the overall key steps to Forex trading success:

  • Realistic expectations:
    • There is no quick and easy ‘Golden Button’ to trading riches.
    • Set realistic time-scales to achieve consistent profitability.
    • Temper your expected earning potential in the first few years.
    • Set realistic targets.
  • Determination, Patience & Discipline:
    • Determination to succeed and not giving up at the first, second or third hurdle.
      • Stick-ability.
    • Learn to ability to be Patient and wait for high probability trades to come to you rather than try and force the market when it is not yet ready.
    • Develop the Discipline to adhere to your Trading Plan to the letter. Continue reading
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