Forex

The higher the leverage you use, the   harder   it's going to be for you to make money. The more leverage you use the more value each pip has. Since the pips are worth more, you have to risk fewer pips per trade to avoid risking your account's wellbeing. Here's the problem. When you risk fewer pips, you'll get stop too close to the market's current price. Then any market "hiccup" will take you out with a loss. If you had lower leverage, you would have had more room for the trade, and it may have very likely become a winner. Many new forex traders are trying to trade with these really tight stops (10 to 15 pips). That's way too close.   Decrease your leverage   and give your trades some room to breathe. You'll probably find that you have more winning trades. Another reason why you shouldn't trade with tight stops is that it becomes a known target for Forex Brokers and will be triggered if possible to take your money however small your trade....

While   foreign currency trading   offers its rewards, especially when you are able to trade in major currencies like the US dollars and Euro, caution against advertisements and brokers that offer instant riches   must be observed.   There is move to regulate foreign   currency traders. Unfortunately, not all in the industry are registered. Not entirely illegal, many unregistered brokers populate the financial markets. Extra precaution is suggested for individuals and companies when they deal with   forex brokers.   The United States has passed a federal law, the   Commodity Futures   Modernization Act of 2000 that gives authority to the commission to investigate suspicions of frauds in the transactions.   Frauds in Forex trading have telltale signs and you must be aware of these. Be wary of schemes that offer quick riches. An experienced Forex brokers will tell you   currency trading   is not a risk free business and onl...

1. NEVER OVER TRADE I have found that an amazingly high percentage of traders are forced out of positions because of over trading. Over trading tends to put traders on thin ice, and can eat into valuable trading equity. Experience has taught me to always have at least 100 percent additional capital available to protect a position. In other words, when establishing a position, risk only ½ of your available capital to avoid over extension or a potential margin call. Remember, the un-predictability of the markets is stressful in its own right-don’t add to the stress with something you can control. 2. DON’T TRADE TOO MANY MARKETS AT THE SAME TIME Just as you shouldn’t over extend your capital, be cautious also not to over extend your attention span. Computerization has allowed us to now watch more markets than was once possible. Regardless of this technology, however, greed can often cause us to take more than our mental energies will allow. Even the most sophisticated system c...