Forex Analysis
Lack Of Game Plan Numerous traders do not have a game or trading plan. They do not know what to do because they do not have defined strategy or profit goal. A large floating profit will often turn into a large loss because they did not know when to get out. Always be sure to have a TRADING PLAN. Lack Of Money Management Trading in the FOREX markets is not a question of how much the loss will be if you are wrong or how much the profit will be if you are right. It is a question of the odds of being right. We call it the RISK-TO-REWARD RATIO. Good money management means you should know your profit objective; the odds of being right, and control your risks with stops. Failure To Use Stop Lost Order This is related to the first 2 rules: Lack of game plan and lack of money management. Failure to utilize stop loss or limit orders reflects the absence of goals and objectives. Mental stops do not prevent against irrationality, arising when individuals operate on fear and hope. Taking Small Prof