Forex-trade Too Often, Lose Too Often!

by Kent Douglas

The thrill and excitement of rush caused by a trades successful few can be intoxicating you leave and wanting more-a lot Still, more! the heart of strategy investment any centers around putting of odds the success in your overtrading and favor in the Forex undermine can market even the best strategies. of Forex is a market volatile very and most investors wise be would to follow the Jimmy of advice Rogers, a famous trader successful and who is quoted "One saying, as of the best anyone that rules can learn...is to do nothing."

One of the that mistakes biggest an investor can to is make allow fear or govern to greed the decision-making process. causes Fear investors to close early too positions or to stop altogether. positions opening While fear potential the limits for profit, greed the up opens door to huge losses. staggering and Chasing profits fear to due causes investors to position a keep longer than they or have should to spread themselves thin. too Inevitably, market volatility in swing will the wrong direction investor an and can lose everything!

Risk Management

Any time an a opens investor position there will risk. be The market is while right always even the best are investors of only right part time. the of Each and should position every have a stop/loss to attached order it. Stop limit will orders risk and protect from investor the riding a losing long. too trend Plus, when is order the in place and there to, adhered is no reason to all at trade unless the been has stop triggered so they help also will reduce the tendency trade. over to

Especially for investors the to new Forex, stops can often triggered be in the early Now going. while an investor stop the wants to be effective loss, limit and it is important not it that be triggered too profit or early opportunities will be An lost. effective investment strategy some take may time to "dial don't so in" be surprised if are stops the initially set too close (or tight to the opening are and price) triggered prematurely.

It is very a that possible trading account will negative a have balance in the going. early However, with patience placement better and of stops, an strategy investment effective will begin to and out win be profitable. the of One worst mistakes that make investors beginning is to try up "make and for" a loss out getting by there and investing If immediately. your stops are properly, set not however, this additional be may investment little more than to chance another lose more money.

No Forex investment work will strategy every single time market the because is simply too too and big volatile for anyone with predict to 100% accuracy. often too Investing in the Forex, almost is however, certainly a recipe while disaster for being patient, setting and stops, effective continually testing your ultimately will strategy bring you the seek. you profits

back to articles