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Thursday, October 9, 2008

Learn Currency Trading - 3 Simple Tips Anyone Can Apply to Make Triple Digit Gains

By Kelly Price

If you want to learn currency trading then most of the information online will not help you win, as the majority loses. The information in this article is not commonly accepted wisdom and that's why it works...

Let's look at how to make more money from currency trading

Tip 1 Cut Trading Frequency

How many traders try forex scalping and day trading - a huge amount and how many win long term - none. Why? Because they are trading random moves and cant get the odds on their side and lose.

The first tip is all about trading less and making more - because you are focusing on the high odds trades.

I know traders who only trade a few times a month but make huge gains, because they understand that they should only hit the best opportunities and you should do this to.

Forget day trading and focus on the big longer term trends that make the big profits, these trends last for weeks months or years and you only need to catch a few each year to turbo charge your gains.

Tip 2 Risk More Per Trade

This isn't being rash this is common sense.

Read most so called experts online and they say risk up to 5% only! Well that's fine, if you are trading 100,000 - but most traders are not, there trading an average $1,000 so 5% risk = $50.00, well you are going to get stopped out by random volatility.

These traders, really ought to brush up on an essential bit of forex trading education which is - standard deviation of price and they will see why it doesn't work.

If you are trading a high odds trade - risk more - Up to 20%.

Keep in mind that most traders risk so little, their guaranteed to be stopped out. They try and avoid risk so much, they actually create it.

If you don't want to risk a meaningful amount, you won't make a decent profit.

Tip 3 Trail Stops Slowly

This is really related to the above point - don't trail your stop to close, give the market room to breathe so you stay in the big trends as long as possible. You have to do this and it takes discipline and it's not easy to take open equity dips but have the discipline to do it and you can make huge gains.

The above is really common sense and seeing currency markets for what they are - a risk market where you need to take meaningful risks at the right time to win.

If you try and restrict risk to much you will lose.

Learn to Love Risk!

See risk as opportunity, have the courage of your conviction, trade high odds trades only have the courage of your conviction, trade with discipline and you will be well rewarded and enjoy currency trading success.


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