1-Maximize Your Tools      2-Risk Management      3-Two Ways to Trade      4-The Basics of Technical Analysis      5-Applying Technical Analysis      6-Fundamentals Everyone Should Know      7-Psychology of Trading Risk Management There are three basic questions that every trader should answer BEFORE entering a trade. How much do I believe the market will move and where do I want to take my profit? Limit Orders allow traders to exit the market at profit targets. If you are short (sold) a currency pair the system will only allow you to place a Limit Order below the current market price  because this is the profit zone. Similarly if you are long (bought) the currency pair the system will only allow you to place a limit order above the current market price. Limit orders help create a disciplined trading methodology and enable traders to walk away from the computer without constantly monitoring the market. How much am I willing to lose before I exit the position? Stop/Loss orders allow traders to set an exit point for a losing trade. If you are short a currency pair the stop loss order should be placed above the current market price. If you are long the currency pair the stop loss order should be placed below the current market price. Stop/Loss orders help traders control risk by capping losses. Stop/Loss orders are counter-intuitive because you do not want them to be hit, however, you will be happy that you placed them! When logic dictates you can control greed. Where should I place my stop and limit orders? As a general rule of thumb traders should set Stop Orders closer to the opening price than limit orders.  If this rule is followed, a trader needs to be right less than 50% of the time to be profitable. For example, a trader that uses a  30 pip Stop/Loss and 100 pip limit orders needs only to be right 1/3 of the time to make a profit. Where the trader places the stop and limit will depend on how risk-adverse he is. Stop/Loss orders should not be so tight that normal market volatility knocks the position out. Similarly, Limit Orders should reflect realistic expectation of gains given the markets trading activity and the length of time one wants to hold the position. Test Your Skills If you haven’t already you will need to register for a Demo Trading Account and download the Free Software. Click here. 1. Buy three different Euro positions. Place a 20-point stop order, 35-point stop order and a 100-point stop order. 2. Buy three more Euro positions. Place a 20-point limit order, a 70-point limit order and a 200-point limit order. 3. Buy one Yen position and place a 30-point stop order and a 100-point limit order. Now buy one more yen position without a stop or limit order.  Two Ways to Trade >>

Download MSIE Explorer Here

* If you experience any problems, please contact support@goldbergforex.com or
call us at (305) 947-9639.

Trading foreign currencies is a challenging and potentially profitable opportunity for educated and experienced investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. More over, the leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses. To manage exposure, employ risk-reducing strategies such as 'stop-loss' or 'limit' orders. There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. Goldberg Forex is not responsible for communication failures or delays when trading via the Internet. Goldberg Forex employs back up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is always available. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. Goldberg Forex is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Goldberg Forex has taken reasonable measures to ensure the accuracy of the information on the website. The content on this website is subject to change at any time without notice.

Forex trading involves substantial risk of loss and is not suitable for all investors.

Copyright 2002 - Goldberg Forex Group - All Rights Reserved - Privacy Policy
Powered by: WBpro