Tuesday, September 2, 2014

Are You Winning When Trading Forex?

How to Win With Forex Trading

I have been trading for a number of years and do so quite successfully now. However, this was not always the case. In fact, I started with $200,000 on a margin account and within one year lost 75% of my trading capital. I will never forget the lessons I learned then as they have helped me to successfully trade now. I will never forget what I learned and in order to give back a little I want to share a few of my lessons which if applied, I can assure you success in your Forex trading future.
This is how to win with Forex trading.
Here are my 3 Golden rules with a few comments after the principle:

1. Never Trade With Money You Cannot Afford to Lose. I have been there and the reality was that I should not have been using the money I was. The result is trading with "scared money" and the outcome will inevitably be losing all of it or near all of it. Why? Because trading with money you cannot afford to lose will cause you to become fearful and that brings us to the next principle never to be violated.

2. Do Not Trade When Fearful. In order to judge this you need to be familiar with yourself and your own ambitions and personality. I can guarantee you that if you trade Forex with fear then you will go out a loser again and again. The market is tough enough without adding fear into. Fear makes you do irrational things like get rid of a position before you should have, etc.. .

3. Do Not Become Greedy. If you have a winner never allow it to become a loser. I have never seen any trader go broke taking home winners but those who get greedy will lose.

Now that you know what not to do, it is time to show you how to make it in the Forex market.