BUY ALERT: Daily green Trade Triangle buy alert basis spot Gold $961.20
Category: General
Why Do Most Forex Traders Fail: Risk Management
I'd have to say that EVERYTIME Bill Poulos is a guest blogger, he gets almost as many comments and attention as Adam...ALMOST. Today should be no different. I called Bill and asked him to write an article on risk management in Forex. I read the article and it delivers, so you won't be disappointed. This article focuses on the method he uses and he's produced two videos (Flexible Forex Discovery VIDEO ONE.....Flexible Forex in Action VIDEO TWO) so check out the videos, enjoy the article, and let the comments fly as I told him he'll have to teach in the comment section!
=====================
When trading anything, risk management is first and foremost. Without it you will lose, period. When trading the Forex markets or any highly leveraged market, you must have a risk management plan that accounts for that leverage.
Forex broker’s are fond of touting the fact that they provide 100:1 or even 400:1 leverage, but the truth is, if a trader ever takes on position sizes that take full or even partial advantage of that leverage, the account will soon be wiped out. That is because the maximum % of one’s account size that could be risked on each trade allowed by the broker, would lead to excessively large position sizes and levels of risk far beyond what a good risk management system would allow.
Continue reading "Why Do Most Forex Traders Fail: Risk Management"
ALERT: Buy signal on Crude Oil 6/04/09
ALERT: Our “Trade Triangle™” technology signaled a buy crude oil signal today at 69.05 basis the July contract.
2-Target Trades
Today I’d like everyone to welcome Bob Iaccino fromTraderOutlook.com. Some of you might reconognize the name, and that’s because Bob is a frequent contributor on CNBC, CNBC Asia, Bloomberg Television, Bloomberg Radio, CNN, CNN International, Fox News, and several other media outlets as a special guest analyst. Yeah he’s all over the place and he knows what he’s talking about.
You can visit Bob's site TraderOutlook.com by clicking on this link.
---
All traders pick and entry point for a trade and once the trade is made, they look for a spot to get out. Most also identify a stop-loss level. The good traders have a target level they are looking to exit at, or a time frame in which to take the trade off. Not many however, use “2-target trades” very regularly. We use them quite often, looking to catch larger moves. Here’s why you should too.
2-target trades can also be defined as scaling into a position, but the main difference is that the trade scale is pre-planned in ½ trade increments and only when the trade is going in our favor. The levels are planned very specifically based on the risk/reward profile. 2-target trades are simple and can help eliminate some of the fear of putting on trades that have distant targets or longer timeframes. In the chart below, we have a recent EUR/USD trade that we discussed in our morning broadcast.
ALERT: We exited all long crude oil positions today
ALERT: Our "Trade Triangle™" technology signaled an exit all long crude oil postions today at 66.23 basis the July contract.
