Eliminating The Pitfalls of Forex Trading: Advice from Noted Website Owner
August 07, 2012 (PRLEAP.COM) Business NewsMr. Alex Miller, owner and operator of the FOREX directory YourForexDirectory.com, recently gave some guidance to his followers on how to avoid some of the most common pitfalls in FOREX trading. "I call this my 3-E approach, because it is easy-to-remember, but the points are critical to your success in FOREX trading."
ESTABLISH an Appropriate Stop-Loss Level
"One of the most critical areas," according to Miller, "is to properly define the proper level for all stops. It is one of the most critical, and yet also easily-overlooked aspects of your trading strategy. In fact, you might be surprised at the number of FOREX traders who have no stop-losses in place at all. This means that you are taking an unnecessary risk of losing huge amounts of money. Why risk your money when you don't need to? Stop-loss is your parachute — it will enable you to fall softly to the ground if the bottom drops out of your markets, instead of crashing hard."
ELIMINATE Emotions from Your Trading Decisions
"The second pitfall has to do with emotions. Emotions are bad when you are trying to evaluate which position to take, and the 'herd instinct' can pull you down again and again. Most traders are really sensitive to what is happening to their money, which is completely understandable. But don't let the fear (or hype) make the decision for you. When you are doing a
review of AVAFX platform, for example, make decisions based solely on the facts. Don't let the latest news blurb or your buddy's comments sway you. Even worse is responding to rumors and gossip circulating in forums, etc. In fact, doing what the others are not doing, going where they are not going, can sometimes make you some significant coin."
EVALUATE Your Brokers Before You Use Their Services
"Finally, I can't stress this one enough — you need to carefully evaluate an offer from a broker to make use of their services. You need to find sources of information on their ethics, trading philosophy and feedback from past and present customers. Don't be someone who responds just on the basis of the latest slick offer. There are a ton of
FOREX brokers out there. How do you know that your investment objectives will mesh with their approach to trading? Long after their introductory terms have vanished, you will still be dealing with that person — make sure that you pick the best one, the right one, for you."
In addition to technical analysis based trading, the YourForexDirectory.com team publishes blogs, reports and white papers on major currencies including the US Dollar, Euro, Pound Sterling and Japanese Yen, in addition to other common currencies. Our trading systems include Alligator System, Fibonacci retracement system and the 7 days trading system [in which the success rate is more than 80%]. We typically limit risks using stop losses and are competent with candlestick based intraday trading.