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Logic Over Emotions
Trading, investing, gambling. They are all really one and the same thing. You make decisions and you either make or lose money as a result.
As you start your new career in forex you must make a personal oath to yourself to place your trades according to your logic. You must always have a reason to place a trade.
Never, ever, trade based on emotions or gut feeling. Whilst you may still often be correct, trading this way is notoriously inaccurate and many traders have lost a lot of money by letting their emotions get the better of them.
Discipline
You must exercise great discipline in your trading. The human mind is prone to errors, laziness and lapses of concentration. Getting the right discipline is critical if you want to learn forex trading.
Follow your plan above of always having a reason to trade and do not waver from this plan for even a single moment.
Risk Management
Knowing how to trade online profitably requires good money management. Never risk your entire balance on a single trade.
Sometimes the market goes against you, no matter how well prepared you are, and you will lose money on some trades. The important thing is to make sure that you didn't risk everything on a single trade by limiting the size of the order.
Another way to do this is to use stops for every order that you place. A stop is a way of telling your broker: "close out my trade if the market moves against me by e.g. 15%".
A stop is just another word for a safety net so that if you get it wrong then you can "live to fight another day".
Category: Forex TradingLearn Forex Trading - Beginner's Guide On How To Trade Online Profitably was written by:Author:Eric GlenwoodAdded: Fri, 29 Aug 2008 13:13:34 -0400 This Article Has Been Read 84 times View all Eric Glenwood's articlesAbout the Author: Eric Glenwood is a freelance contributor and editor of the Beauty and Fitness information portal which reports on the latest Beauty, Fitness and Relaxation Therapies promoting natural detoxification and healing benefits. To learn more about Massage Cupping or Chinese Cupping visit http://www.chiactivate.com |
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