is an abbreviated name for foreign exchange. The trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For many years, the market was dominated by large institutions such as banks and brokerage firms. However, the market has experienced a major change over the past several years, as a growing number of private investors and traders just like you have started to actively participate and trade. The purpose of this article is to reveal trading strategies that withstand the test of time.
Have An Open Mind: According to Mark Twain, It's not what we don't know that hurts us; it's what we know for sure that just ain't so.
Good Money Management Alone Is Not Enough: According to Monroe Trout, Good Money Management alone isn't going to increase your edge at all. If your system isn't any good, you're still going to lose money, no matter how effective your money management rules are. But if you have an approach that makes money, then money management can make the difference between success and failure.
Do Not Play Catch Up: According to Richard Dennis, I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.
Trading System: According to Howard Abell, The trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A system is a disciplined method for organizing dynamic, ever-changing market phenomena.
Trade Small: According to Mark Ritchie, I think it's generally a good idea that when you put on a trade,
it should be so small that it seems almost a waste of your time. Always trade at a level that seems too small.
Be Greedy When Others Are Fearful: According to Warren Buffet, Be greedy when others are fearful.
Courage: According to Bill Lipschutz, It is not enough to simply have the insight to see something apart from the rest of the crowd, you also need to have the courage to act on it and to stay with it. It's very difficult to be different from the rest of the crowd the majority of the time, which by definition is what you are doing if you are a successful trader.
Limit Your Losses: According to Linda Bradford Raschke, The market will decide how much profit to give you. Only you can decide how much to limit your loss.
Good Trades: According to Van K. Tharp, Good Trades Seldom go too far against us.
Always Changing: According to Jack D. Schwager, The markets are always changing, and they are always the same.
The Strategy: According to Sun-Tzu, All men can see those tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.
Sit On Your Hands: According to Bill Lipschutz, If most traders would learn to sit on their hands 50 per cent of the time, they would make a lot more money.
Psychological Makeup: According to Leo Melamed, You learn to distinguish the good traders from the bad, the successful techniques from the unsuccessful, and the good habits from the faulty. You also learn to distinguish the lover from the fighter, the winners from the losers, the serious from the frivolous, the cerebral from the superficial, and the friend from the foe. But above all, you learn that the psychological makeup of the trader is the single most critical element of success.
Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
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