Forex Trading Guide                       Bookmark This Page

Welcome to Forex Trading Guide

Article

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.

http://www.1-forex.com

Forex trading News

Forex trading

WASHINGTON (Reuters) - Unemployment benefit rolls swelled to a 26-year high in the last week of December, data showed on Thursday, while retailers, including market leader Wal-Mart, reported poor sales as the year-long economic slump deepened. The ...

Jobless rolls at 26-year high, retail sales weak - Reuters UK

TOKYO, Jan 5 (Reuters) - Japan's Nikkei average climbed 2.3 percent on Monday, the first trading day of the year, to hit its highest levels in two months as optimism that better times lie ahead lifted shares in the wake of a Wall Street surge. Honda ...

Nikkei climbs on hopes for better year, weaker yen - Forbes

ZURICH, Switzerland, Jan. 8 /PRNewswire/ -- In close collaboration with PFSoft, Forexone has released the ProTrader private branded trading platform entitled FXInfinity TRADEMONSTER. "PFSoft turned out to be the ideal partner for our development of ...

Swiss FX Broker Forexone Releases New Forex Trading Platform from ... - Newsblaze.com

James Chen , CTA, CMT, is the Chief Technical Strategist for FX Solutions. He is also a registered Commodity Trading Advisor and a Chartered Market Technician. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars ...

James Chen - FXStreet.com

Jan 05 - Forex Trading Signals Well-Positioned for Gains in the New Year Dec 29 - Forex Trading Signals Likely to Outperform in 2009 Dec 22 - Forex Trading Signals Likely to Benefit from Range Trading Conditions Dec 15 - Currency Trading Signals ...

Forex Trading Signals Well-Positioned for Gains in the New Year - DailyFx

Jan 06 - Euro Falters as CPI Suggests ECB Will Cut Rates (Forex Video) Jan 05 - Forex Trading Signals Well-Positioned for Gains in the New Year Jan 06 - Dollar May Reverse Gains on Weakening Service Sector Jan 06 - Euro Zone Inflation to Fall Below 2 ...

Euro Falters as CPI Suggests ECB Will Cut Rates (Forex Video) - DailyFx

Rate drops to new lows overnight as cross-liquidation continues. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling but traders note lots of stops active under the 1.3400 area. Late longs are under pressure and can't ...

EURO USD Forex Trading Tips and Analysis for Day Traders - Top News India

Veteran Turtle Trader, Russell Sands, Will Auto-Trade For You. $6K Minimum. 100% Guaranteed. Automate Your FOREX Trading and Explode Your Profits TODAY! Double Your Money Each and Every Month. FAP Robot Eliminates the Guess Work in FOREX Trading ...

Forex News Trading - Colleyville Courier

Forex scalping is basically where you target lots of small price moves over the course of a particular trading day. It is quite a popular way of trading currencies but the drawback is that you will face a number of potential problems. The first ...

Forex Scalping - Some Potential Problems You May Face - Best Syndication

(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend lines in red; chart patterns in magenta; 50-period simple moving average in light blue.) 1/08/2009 – GBP/USD – Though it is still ...