IF ONLY TRADING WAS THAT EASY
If only trading was that easy to make money – the entire universe will be all millionaires!!! Obviously is not true – FOREX Trading is a Zero Sum game – one win and other lose – the Broker makes the most money as he facilitate the both traders to trade and he doesn’t take any risk.
WHY TRADING IS SO DIFFICULT AND NEED CAREFUL EXECUTION?
Wisdom in trading can only be derived from experience and that is trading the real market with real money. There are number of things to consider before you push the button to BUY or SELL.
- Psychology of Trading
- The ability to hold your emotions and never ever breaking any rules in trading
- Money Management
- Never expose too much; never use leverage unnecessarily unless you are aware of the risk – as it is a double edge sword
- Understanding both Technical & Fundamental Analysis
- Be aware of both Technical and fundamental approach to trading
- Both are equally important and one can never work without the other
- Timing of Trading
- Be aware of news
- Be aware Time Volatility
- Be aware Central Banks announcement – i.e FOMC
- Learn to close the trade at the end of each day
- Be clear of you SL & TP & HOLD Positions
- Don’t leave your position open
- Have a Trading Plan
- Don’t trade without a Plan
- Be aware of Risk & Reward
- Learn to Cut Loss without any emotions
- If the market is not in your favor – cut loss and re-oraganise
EXAMPLE OF A PLANNED CHART
WISHFUL THINKING IF YOU ARE DREAMING OF 30-100% EACH MONTH RETURNS.
So, now that you know if not realistic for 30-100% return each month – yes there are months we do make 30% or so but that’s just once in awhile when opportunity comes but we believe 2-5% return each month cautiously is a realistic return.
LEARN MORE WITH FINWAZE FOR FREE – CALL SHARON @ 09199104104 FOR FREE 3 DAYS CLASS – You will learn Philippines Stocks/Shares and Global Currencies and also how you leverage the banks in the Philippine to make money.
High Risk Investment Warning:
Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.