Tuesday, September 2, 2014

Trading Forex Keep It Simple

Forex Trading By The Books

I'm going to give you some advice on forex trading by the books. This business can be pretty intimidating, but it really isn't. You just need to keep it simple and apply the advice daily.

I seem to make more profitable trades than trades that lose, but I noticed I'm losing money, why?

Never look at trades as winners and losers. This is a game where you are hear to make money. Look at things as money. If you made $100 on two trades and end up losing $200 on one trade, you're down money. You're losing. You have "won" more trades than you have "lost", but you're losing money and that's all that counts.

You need to understand that profit can be anywhere between one penny to infinite amount of dollars. Losses can be anywhere between one penny and all the money you've invested. It's definitely not smart to think in wins and losses. What you want to do is maximize your profitable trades and minimize the losing trades. Losing trades are easy to limit and that's simply done by cutting losses. The best thing you can do is decide before you make a trade, how much you're willing to lose before you sell. Profits are a little harder since that comes with experience. Just don't too greedy and you should be fine.

Do I need software?

You don't need it, but I recommend. Think of it like construction. You can do all your work with a hammer, but a nail gun makes you more efficient. You can do two or three times more work in the same amount of time. This makes you more profitable.

Trading binary options tips and strategies to trade successfully.