Don't Trade Without A Stop Loss

By Ahmad Hassam

The market is always ebbing and flowing. Its like the waves in an ocean. The market goes in one direction. It has a correction. Then it continues back in its trend direction. It has another correction and so on. Even in sideways or choppy market, there are ups and down in the price action.

It is like the continuous ebb and flow of the tides. You must learn to ebb and flow with the tides in the market. Setting stops on the key levels of price support are crucial. These key support levels represent significant market realities occurring with enough trade volume to warrant a stop loss level.

How do you reduce the possibility of getting stopped out of a perfectly good trend by the normal ebb and flow of the market? The market will continuously fluctuate. The answer lies in the current price, volume and volatility of the market.

The stops need to protect you from risk but they also need to allow the market freedom to fluctuate. You will need to ensure that your trading system and approach take these factors into consideration so as to allow your stops to ebb and flow with the markets.

If you know how to listen to the market, the market will tell you where to set your stop loss. To choose a random exit that does not include the crucial information the market is giving you at any time is ignoring what the market is telling you.

You need to learn how to identify the correct stop loss based on the market dynamics. Then learn to adjust your trade size to manage your dollar loss. Never ever use an arbitrary dollar amount like, I will get out of the trade when it goes against me $200.

The value of having the stop loss in place prior to entering the market is that you can unemotionally determine the best exits possible for the different types of risk like the trade risk, the market risk, the liquidity risk, the margin risk, overnight risk and the volatility risk. A stop loss protects you from these risks.

The position of your initial stop should be based on the rule of 2% risk on your trading account. For some advanced traders it is sometimes beneficial to risk more than 2% of their trading account on a single trade. However, the amount these traders risk must be carefully calculated depending on their proven historical performance statistics.

One of the greatest challenges for any trader is to finally come to the point where he/she firmly believes that a sound money and risk management program is vital. Placing stop loss correctly is an important part of the money and risk management program. Remember the saying that there should be some method to your madness. Learn the yin and yang of trading. - 23210

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This 1500 Pips A Day Forex Signal Service from heaven! Learn These Candlestick Patterns!

Online Forex Trade For Easy Money - Start Trading Forex Now

By John Eather

Are you familiar with the stock market and do you know about all the ins and outs of trading stocks? Are you now getting a bit board of the whole thing, you might feel that it is time for a new look? You could find yourself online searching the internet tirelessly, day in and day out, or you might think to ask around trying to find out how you neighbor does it, or you could just get smart and pick up the new trend, follow what the rest of the world is doing and start doing online Forex trade.

Originally Forex trading was used in larger companies and between huge businesses and organizations that could afford the Foreign Exchange, however, these days, easily accessible training systems, the internet, and Forex charts are obtainable for everyone to see and to use.

Initially online Forex trade might intimidate you and you might feel a tiny bit overwhelmed by the tons of information available to you on blogs and the rest the World Wide Web. The reason for this is that so many people have been using the foreign exchange as a trading tool for many years and they now feel the need to offer their expertise, services and even their advice to assist others out there who have just started Forex trading online.

Your internet connection is the perfect way of Forex trading; this is because you are offered options to be kept in the loop at all times, where ever you are. This option also allows you to download a streaming live feed of the goings on of the online Forex trade world. You can get a real time online chart of your Forex online trading. So now online Forex trade can be done at your office, your home, or even on your family vacation.

You will need to know what a pip is, and what trends and trend patterns are. You must learn using an online forex trade system when would be the best time to trade and when not to, according to market and exchange rate deviations. You can find plenty of resources online that will give you some tips and strategies.

A great purchase you can make is to have the latest updates sent directly to your phone or email in real time. In this way you are immediately able to make a decision and not lose out if the trend changes again soon. - 23210

About the Author:

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How To Trade Forex Like Nothing

By Scott McDonald

Discovering how to trade forex markets was a challenge to figure out. After I stumbled upon this method, my trades started to take off like I couldn't believe. This made the cost of the method well worth while since the gains paid the cost off in a matter of a week! No methods I have seen can get results that good in that short of a period of time.

Learning how to trade forex was a long time consuming process that seemed to never end. The learning phase seemed to transition to a profit phase once this method was incorporated into my trading. As I have said, within the first week the profits started to show. It was astonishing how easy I could add this to my current trading skills.

Applying the new how to trade forex skills showed that success can be accomplished with a little time and dedication. In a matter of weeks a beginner trader can start to turn profits out of this method. With a little time and dedication, you may be on your way to a very rewarding path. This one method I added to my trading made my profits double!

Once you learn how to trade forex with this new method, it can be incorporated easily and you will find that you're many steps ahead of the rest. In my experiences of trading, I haven't seen any that can come close to this method of trading. Making money with other methods has been regular, but this one is far superior to the rest. It is no wonder why they have kept it hidden for so long!

Many traders never learn how to trade forex with proper methods and find them self in an endless learning curve. Learning forex does not have to be all of you time, it should only be a part of it. Practicing with a live account can be good also, you will learn quick with money involved. How will a trader improve at trading if they are not live trading much? Using this one method with my trading has been the best move I have ever done in forex! - 23210

About the Author:

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Which Investment Strategy Is Right For Me?

By Joshua M. Redinger

Getting started investing in the stock market can be quite daunting. There are so many questions to consider. Which stocks should I buy? Should I buy stocks or bonds, or something else? Which investment strategy is right for me?

Choosing an investment strategy is a very personal decision. No expert can tell you what you are comfortable with. Only you can decide that. When deciding what strategy to use for your investments, above all else it comes down to your personal preferences. Other people can make recommendations, but it is up to you to decide what you would like to invest in.

The most important consideration for deciding on your style of investing is how you feel about risk. If you won't be able to sleep at night worrying that your high-risk investments might be worthless in the morning, then high-risk investments are definitely not for you. On the other hand, if you will be frustrated to receive only a small return on your investments, you will probably have to take some more risk to have a chance at earning the type of return you're looking for.

There are a wide variety of investment opportunities available with different levels of risk, so you need to decide how much risk you are comfortable with. Then you can choose an investment that offers the potential to make the return you desire without being so risky that you are constantly worrying about it. One good way to minimize risk is by purchasing stock in an assortment of companies or buy investing in a mutual fund.

Of course, if the entire stock market drops, your portfolio is going to decrease in value no matter where you invest. In that case, you need to remember to hang in there and not panic because the stock market has never yet failed to recover. If you wait it out, there's a good chance that when the market recovers you will end up earning a profit on your mutual fund investment.

Investments that are considered safe include government bonds, such as municipal bonds, and CDs that you can get from your bank. Unfortunately, these types of investments usually don't perform well. To increase your chances of making a good return on your investment, you may want to consider a higher-risk investment such as a growth mutual fund.

Although you are always taking a chance when you invest in the stock market, overall the US stock market has always done well over time. The trick is choosing individual stocks or mutual funds that are likely to do well. If you do your research before investing and stick with investments that fit with your investment personality, you can increase your chances of doing well in the stock market. - 23210

About the Author:

Are you searching for a good investment strategy that works for you? Before you waste your time searching for a good strategy, check out BeforeYouInvest.com's beginners guide to investing before you do anything else. BeforeYouInvest.com reviews everything from typical investment strategies to the best online investing tools so take a look.

A Few Fx Trading Secrets

By John Eather

By using fx trading secrets you can enter the forex market a step ahead then other beginners and be a success from the beginning. Basically you are skipping the learning steps as you have already been provided this information from the forex trading secrets. The forex market is based off of foreign currency pairs and is open 24 hours a day, 365 days a year. It never stops so no matter where you are in the world or whatever time zone you are in you can trade in the forex market.

You may be able to learn these fx trading secrets in time but why spend time learning when you can find them yourself and make use of them immediately. Even if you are doing well using forex trading most inexperienced traders do not follow a good trading system.

You will develop your system based on the trends that occur in the market. By being able to analyze these trends you can maximize the profits from forex trading.

To take advantage of trends you will need to watch the 4-hour trading chart. Most trades will last a short time from 1 to 15 minutes. What you want to do with the 4-hour chart is to see the long trends and then make trades based on those trends that are short in time. Once you have mastered this you can even begin to make longer trades that last for four hours.

To make the most from your trades you want to start small. If you notice the currency pair doing well then you can add on at specific times. By starting small you are minimizing the risk that is involved with making a trade. There is always a risk as there is always the possible of the currency pair dropping, even if it is following an upward trend. To maximize profits you can start small and then do add-ons as the trend continues. - 23210

About the Author:

Learn more about fx trading secrets. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you.