Thursday 3 January 2013

How to make profit in Forex Trading

Being profitable in Forex requires a lot of work, dedication, practice, more than a good discipline, sharp knowledge of money management and understanding of the psychology of the currency market.

To profit in Forex sticking to a set of rules is not enough. Good money management is also needed.

Knowledge of how much to trade per each open position and where and when to stop; is what separates successful trader from bankrupt trader.

Many beginner traders over-leverage themselves being attracted by big and promising leverages offered by Forex brokers. The truth is that a big leverage is not only about a big win, but also when it comes to be so – a big loss.

Opening a new trading position must be first of all about how much money may be lost and then what would be the profits. Good money management implies that trader is expecting to win at least twice as much as he could lose on each trade.  [Via]

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