I wanted to talk to you about foreign currency investing strategies. This is a global market that provides a very nice opportunity to individuals all over the world. This market has grown to over three trillion dollars a day in trades making it the world's largest market. This amount of money attracts a lot of get rich quick people. Do not become of of these people because they end up losing all their money because they don't have the slightest clue on how to invest in this market. I'm going to share with you a little about what I've learned that has helped me in this market.
I think the most fundamental skill that people have a hard time implementing is cutting your losses. You're going to have bad trades, just like the rest of us. The difference between profitable and unprofitable traders is how you deal with it. I used to think cutting my losses was stupid because the currency will typically go back up. It might. It could take a year to go back up. Are you willing to leave that much money in the market for a year, when you could cut your losses, get some of the money back and reinvest it in another profitable trade?
You have a 24hr market here, but it isn't always profitable at all times. I find the low volume times quite unstable. The reason is that there isn't enough trading going on for a stable supply and demand. If you look at the high volume time, there is a lot of trading going on and it seems almost chaotic. Even though it is extremely busy, there is an equilibrium of supply and demand, making it very stable.
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