We were chatting with some currency exchange traders about one of the Problems inspiring them while their trades were ongoing and found a standard issue – watching winning trades become losing trades.

As we’ve discussed before, if you are not handling your foreign exchange trades, from entry point to exit point, you are going to see this happen to you – and it’ll likely occur often .

Here’s the base of the issue :

A trade is entered along with a preliminary stop loss. What most traders do is try to get ALL their profit at once, but they don’t actually have a ‘target’ -

When the trade initially gets moneymaking, many traders will ’screengaze’ – they get targeted on how much they have made or are making at that moment. What they don’t do is plan for exiting the trade – they overstay in the trade and often watch their profits evaporate when the market turns against them ( and then compound that mistake by staying in EVEN LONGER to ‘get back’ those lose profits ). This is a losing offer in foreign exchange trading.

in short , they let greed make them lose sight of the point of the trade.

what’s the point of a trade? To maximize gain and minimize risk – it IS that easy.

Maximizing gain doesn’t mean you exit a trade at the comprehensive ‘Top’ – it means that for the duration the trade is on, you have a set of rules that establish where you may exit for profit – and it isn’t where you suspect it is! More on that in a bit

Minimizing risk means more than only setting that 1st stop loss – you MUST manage your stop losses throughout the period of a trade.

When currency exchange traders enter a trade they must protect their capital first and think profit 2nd. When their position starts trending up, they can take the right action to protect their capital AND their profits.

In fact, most successful currency exchange traders presume they’ll lose on each trade. They perform this psychological trick to make sure their risk plan is always top of mind! Once a trade turns in their favor ( much to their surprise ), the 1st steps they take is get themselves into a break-even trade situation ; followed by assertive stop loss management to maximize their profits on the trade.

They think risk first, profit 2nd.

Watch this video to see how it’s done :

http://www.yourforexangle.com/y/?i=1042601&u=4&l=f2

One of the questions I am frequently asked is what constitutes a good trading methodology. In this post, I’ll show you what most techniques look like ( and why they are bad ) and show you a simple way to evaluate a trading method.

If you take a detailed look at the majority of the so-called forex trading strategies and systems on the market, they constantly share identical lacks :

- They are incomplete. Too many courses teach hours of ‘in theory’ – but spend small to no time teaching a step-by-step plan to help trade.

- they don’t include risk management. This is the number one mistake most traders make – not handling risk in their trades. If the system or method you are considering doesn’t teach risk management consistent with their technique, you would do well to run away from it.

- They focus strictly on fundamental research. Methods that focus only on fundamental analysis are incredibly time consuming and subjective and require much deeper understanding of more complex economic and financial issues. If you don’t understand them, you will not succeed with such methods.

- They need you to’day trade’. Lots of the methods and systems I’ve seen require you to be in front of your personal computer nearly 24/7 to be in a position to ‘react’. Reality should tell you how most unlikely this is.

what is a’good’ method?

based mostly on the methods and systems I’ve seen over the last many years, I’ve created a simple 4-part measurement that I use to determine if a trading method is good for me :

- the strategy must be complete and teach the setup conditions, entry rules, initial stop rules and exit system rules while leaving no decision to chance.

- the strategy must teach and include express guiding principles for risk management and money management as per its methodology.

- The technique must utilise technical research, but it may not be a completely mechanical or mechanical system.

- the method must be practical in terms of time expended applying it : I favor strategies that only require 20-40 minutes a day.

The steps above have helped enormously in removing the ‘pretenders’ among trading techniques and focusing only on the ‘contenders’. Methods which provide thorough clarification of the simple way to apply, protect and trade the methods are the sole types you must use in your trading.

If you’re still losing money trading Forex, then you need to
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In it, he reveals the REAL REASON most traders just like you
keep on losing… and then shows you, step-by-step, how you
can FIX any trading method you’re currently using.

Once you see what it is, you might think it’s a little
“weird”, but after I saw it I was surprised more struggling
Forex traders haven’t been told about this.

Here’s a hint:

* It’s all about how to “–A– -I–”.

Once you figure it out, you’ll be surprised you ever traded
without this technique.

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Good Trading,

Josée