Tag: risk

In order to win, you need to be willing to lose

Be willing to lose

Sometimes small changes lead to big results…

And this is the kind of those “small” things that can have a great impact in your trading results.

Here is a little story

You go to the mall to buy a T-shirt… Once you get to your favorite store and see a few t-shirts, you decide to take the one in blue…

Once you get to the cashier, you tell him:

I want to take this t-shirt home but I don’t want to pay you for it…

Doesn’t make sense, does it?

That’s exactly what happens when you open a trade and you are not willing to lose.

forex, investing, risk

Continue reading

You cant miss this trade opportunity today (or tomorrow, its in the GBPUSD)

Yesterday I was doing a lie webinar at FxStreet and one of the assistants reminded me of something, which could be the essence of trading, he said something like this:

Trading is about finding the right opportunity, with the lowest amount of risk.

He is totally right!

About Risk and Trade Opportunities

We have hundreds of currency pairs, thousands of opportunities each day. So our job as traders is to fin the right one or the right ones to trade each day.

Now, we need to understand something though.

There will alway be risk. It is something we need to live with as traders. There is no such thing as a risk free trade.

So embrace risk, learn to live with it… I guarantee that once you feel comfortable with it, comfortable about the fact that each trade has the possibility to go against you, you ‘ll begin to see more and clearer trade opportunities. As I said, I guarantee it.

Why?

GBPUSD Analysis, opportunities, risk

Continue reading

Video: Risk, trade and capital management

Having an objective and sound system is very important to our success in the Forex market, but it isnt as important as other aspects of trading such as trade, capital and risk management. See why on this forex video.

Feel free to comment.

capital management, forex video, risk

How to decide whether or not to move your SL level

Should I move my stop loss or just leave it where I initially placed it? This is the dilemma. While we are on a trade and the market moves on our favor, this question always arises.

And let me tell you something, there is no right or wrong answer, but the way we approach the market will tell us which one is better for each one of us.

To find the answer to this question, I want you to imagine these scenarios:

Favorable scenarios

  • You open a trade, the market moves on your favor, you decide to move your stop loss level, the market reverses and hits your new stop loss level and it continues against you, this is, if you didn’t move your stop loss level, the market

risk, stop loss, trade management

Continue reading