Forex game
Katie Linn and Boris Shlossberg
Katie Linn is the main strategist of company “FXCXI” in New York. Her book “Intra-day trade in the currency market: technical and fundamental strategy of reception of profit on market fluctuations” (2005), written both for beginners and for experts, has received wide recognition. Katie conducts seminars on trade in the currency market across all United States and also has written many articles for “CBS Market Watch”, “Active Trader”, “Futures magazine” and “SFO magazine”. Boris Shlossberg is the currency strategist of the world’s largest retail market-maker of market Forex “Forex Capital Markets” in New York. His articles on appropriate management of risk, psychology of the trader and market dynamics are monthly published in magazine “SFO”. Boris Shlossberg is the independent trader from 1999 in the share market, options, futures and currency.
What does Forex currency market make attractive?
There are 10 principal causes why the currency market represents a remarkable place for trade:
1. You can trade in any style – strategy can be constructed on the basis of five-minute, hour, day or even week schedules.
2. In an easy approach there is information of large quantity – schedules, news in real time, analytical researches etc.
3. The key information is popular and extends immediately.
4. It is possible to receive percent on transactions even on the day basis.
5. The sizes of positions can vary, meaning that you can trade with the sum of 500$ almost with the same operational expenses, as on the account of 500 million $.
6. Independently established levers allow you be both very conservative, and too aggressive, on your choice (levers can vary from 1:1 to 1:500).
7. There is no any commission that means that the result of each transaction is defined by simple value of profit.
8. You can trade 24 hours a day, practically without testing a liquidity lack.
9. There is no difference between trade in the short and long party.
10. You cannot lose money more than it is available for you on the trading account.
10 rules
1. Never allow an advantageous position turn in the lost one.
2. Logic transactions conduct to profit, impulsive to losses.
3. Never risk more than 2 % from the trading capital in one transaction.
4. Choose positions to the basis of fundamental factors, inputs and an exit – on the basis of technical.
5. Always choose the pair combining strong currency from the weak.
6. Try to be right, but remember, that to enter ahead of time means to appear wrong.
7. Distinguish crushing of a position and escalating of the lost one.
8. Understand that mathematical optimum variant is often impossible in the psychological relation.
9. The risk can be predetermined in advance, but the profit is unpredictable.
10. Never do any justifications.
Trade is an art, not a science. Therefore remember that any rules in trade are never absolute. However, these 10 rules well work in various market conditions, and will help you to be kept “afloat”, and be protected from the big troubles.
The selection of a foreign currency trading service is not an easy task. And one shouldn’t hurry up to make a decision on such a service.
It is very important that you follow a final piece of advice – today the Internet technologies give you a really unique chance to choose exactly what you want at the best terms which are available on the market. Strange, but most of the people don’t use this chance. In real life it means that you should use all the tools of today to get any foreign currency trading info that you need.
Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
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