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 Psychology of Trading Four Principles for Becoming a Better Trader Trade with a DISCIPLINED Plan:  The problem with many traders is that they take shopping more seriously than trading. The average shopper would not spend $400 without serious research and examination of the product he is about to purchase, yet the average trader would make a trade that could easily cost him $400 based on little more than a “feeling” or “hunch.”  Be sure that you have a plan in place BEFORE you start to trade. The plan must include stop and limit levels for the trade, as your analysis should encompass the expected downside as well as the expected upside.  Cut your losses early and Let your Profits Run:  This simple concept is one of the most difficult to implement and is the cause of most traders demise.  Most traders violate their predetermined plan and take their profits before reaching their profit target because they feel uncomfortable sitting on a profitable position. These same people will easily sit on losing positions, allowing the market to move against them for hundreds of points in hopes that the market will come back.  In addition, traders who have had their stops hit a few times only to see the market go back in their favor once they are out, are quick to remove stops from their trading on the belief that this will always be the case. Stops are there to be hit, and to stop you from losing more then a predetermined amount!  The mistaken belief is that every trade should be profitable. If you can get 3 out of 6 trades to be profitable then you are doing well.  How then do you make money with only half of your trades being winners? You simply allow your profits on the winners to run and make sure that your losses are minimal. Do not marry your trades:  The reason trading with a plan is the #1 tip is because most objective analysis is done before the trade is executed.  Once a trader is in a position he/she tends to analyze the market differently in the “hopes” that the market will move in a favorable direction rather than objectively looking at the changing factors that may have turned against your original analysis.  This is especially true of losses.  Traders with a losing position tend to marry their position, which causes them to disregard the fact that all signs point towards continued losses. Do not bet the farm:  Do not over trade. One of the most common mistakes that traders make is leveraging their account too high by trading much larger sizes than their account should prudently trade. Leverage is a double-edged sword. Just because one lot (100,000 units) of currency only requires $1000 as a minimum margin deposit, it does not mean that a trader with $5000 in his account should be able to trade 5 lots. One lot is $100,000 and should be treated as a $100,000 investment and not the $1000 put up as margin. Most traders analyze the charts correctly and place sensible trades, yet they tend to over leverage themselves.  As a consequence of this, they are often forced to exit a position at the wrong time.  A good rule of thumb is to trade with 1-10 leverage or never use more than 10% of your account at any given time, Increasing leverage increases risk. Trading currencies is not easy (if it was, everyone would be a millionaire!).

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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.

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