Failure To Cut Losses Or Take Profits
When a trader can’t pull the trigger to get into or out of a trade it is because
they don’t fully understand what it take to be a successful trader. A trader is
gong to lose but he needs to win more than he loses and have the wins larger then
the losses. The object is to have [...]
Currency Trading Insurance
Here are some examples of Currency Trading Insurances:
1. Use a stop Loss
2. Only trading a small set % or your account 1%, 2%, 3%, 5% on any one trade
3. Only trading a total amount of your account at any one time. 5%, 10% … your choice
4. Keeping the Margin level % above 1000%
(you chose the level of [...]
Drawdown’s Against Profits and Confidence
(2 of 2)
….Yesterday afternoon, I closed down the platform, walked away from the computer and went for a walk with my little girl while my wife was still at work. I returned about 4 p.m., put daughter down for a nap, and then meditated upon the wins and losses and tried to determine what had [...]
Know When to Hold ‘em Know When to Fold ‘em (22 of 26)
This entry is part 22 of 26 in the series The Disciplined Forex TraderWe hear all the time that a trade should be scaled out of by one half when you reach a profit target then set your stop loss to break even on the remaining portion of the trade and let it run to [...]
October 6th, 2008Cool Trading Tools
IBFX-Trade Analyzer
We came across this very helpful tool. It will only work if you have a live account with Interbankfx. We are not promoting IBFX but if you use this brokerage firm this is a cool tool. Just for your information and enjoyment.
What is IBFX-Trade Analyzer?
Many traders measure their results based solely [...]
Setting Stops To Close
We feel that there is only one thing worse than not using a stop loss and that is setting the stop to close to the entry price. We really get frustrated when we set our stop the market moves against us, stops us out then moves in the direction we had originally planned. There is [...]
August 8th, 2008The Importance of Losing when Trading
In real estate the three most important things to an investor are location, location, location. In trading the three most important things are: money management, timing your exits and timing your entries; in that order. More important than how much you make on a trade is how little you lose on the losses. When you [...]
August 6th, 2008Not Using A Stop Loss Mind Set
When a trader sets a stop loss they have pre determined how much they are willing to loose on a trade. They are exercising good money management. Hopefully looking at this one trade as one of many and only part of their trading system.
When a trader does not set a stop loss, the [...]
January 7th, 2008How to Hit a Homerun (20 of 26)
This entry is part 20 of 26 in the series The Disciplined Forex TraderBy learning how to hit singles you will be able to hit a home run once in a while. I don’t know of any trader who gets into a trade expecting to hit a home run every time. You should never [...]
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