Don't Trade Like This
« Previous Entries Next Entries »Don’t increase your risk in the middle of a trade.
Wednesday, January 23rd, 2008Too often some new traders think of a protective stop as an option or a moving target and pay the price for that thought. I often get emails from new traders who see the market move up close to their initial protective stop and threatened with a losing trade will email me to ask if […]
Keep your expectations realistic.
Wednesday, January 16th, 2008Many times I hear from new traders who state that their goal is to make a certain number of pips every day. While it is important to establish goals in any endeavor, any benchmarks should be geared around your improvement as a trader and not about what you expect the market to give you. […]
DailyFX FX Radio: GBPUSD Slips Below Another Level Of Support Before The Closely Watched BoE Rate Decision
Wednesday, January 9th, 2008Click Link to Listen to our Evening DailyFX Radio PodCast:
http://media.dailyfx.com/podcasts/FXRadioPM010908.mp3
Key Points
· US event risk limited, but guiding long-term outlook.
· BoE’s rate decision drawing the British pound with surprising magnetism. (Get up to speed on the BoE meeting and learn how to position for the event risk).
· Do you think that the carry trade will […]
The strongest trends offer the best trading opportunities.
Wednesday, January 9th, 2008For almost all of 2007, many students in the FX Power Courses were buying pullbacks in the EUR/USD and selling rallies in the USD/CAD and doing quite well since they were trading with the trend. But trading has become more difficult lately as there has been little follow through on any move up in the […]
DailyFX FX Radio: A Calm Overtakes The Market As NFP Event Risk Approaches
Thursday, January 3rd, 2008Click Link to Listen to our Evening DailyFX Radio PodCast:
http://media.dailyfx.com/podcasts/FXRadioPM010308.mp3
Key Points
· German employment data surprises the market, thwarts expectations of a quickly cooling economy.
· Traders prepare for Friday’s top market-moving NFP release. (See our Fundamental Preview and Trade Strategy for this event risk.)
To discuss these or any other FX topics with the […]
DailyFX Forex Radio: A Disappointing Start To The New Year For The Dollar, NFPs Could Add To The Burden
Wednesday, January 2nd, 2008Click Link to Listen to our Evening DailyFX Radio PodCast:
http://media.dailyfx.com/podcasts/FXRadioPM010208.mp3
Key Points
· Dollar hammered by a disappointing ISM Manufacturing reading, fear of a recesion, 50bp rate cut rising (Read more in Daily Fundamentals article).
· GBPUSD unmoved despite the dollar turmoil, raising questions as to the pound’s future.
To discuss these or any other FX […]
All currency pairs are not the same.
Wednesday, December 19th, 2007While we recommend traders always use a protective stop when in a trade, identifying that stop level can be a daunting task for new traders. One thing we do not recommend is using a fixed amount to risk on each of your trades. An example would be risking 25 pips on every trade, […]
Be careful what you ask for….you just might get it.
Wednesday, December 12th, 2007When we start one of our FX Power Courses, we ask new students to introduce themselves and let us know a little bit about their trading interests. If you take their explanations at face value, you would be surprised at what you hear. Some are there for the excitement of trading, while others are there […]
Interest rates are an FX trader’s best friend.
Wednesday, December 5th, 2007Once a new trader comes into one of our FX Power Courses they want to know the tricks of the trade. Many will ask if there is one thing that has a mystical power over the currency pairs and if they learn that, it will make them a better trader. Most are kidding, […]
If you enter on the hourly chart, exit on the hourly chart.
Thursday, November 29th, 2007Too many times I hear about new traders opening a trade using the 5-minute chart (not my favorite approach) and when the market moves against them, they move to the 15-minute chart to justify staying in a little longer, hoping that the market will turn around. Then if the market continues to move against them, […]
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