Forex is risky if you don’t know what you are doing. Most amateur Forex traders don’t understand how to calculate and manage risk successfully and trade too much money. Rather than risking a maximum of 1% per trade, they end up risking as much as 100% of their capital and wonder why they can’t make money.
Posts Tagged ‘Risk’
Forex Guarantees? About As Likely As Seeing Cows Swim With Dolphins
In Forex trading, what guarantees are there?
Just like all forms of investment, there are no guarantees and in Forex trading. Long term success is attributed to good money management and a committed and disciplined approach to the system you are trading.Successful Forex trading is about learning probability, which is doing the best we can to stack the odds on our side with well informed, experienced investment decisions. When you learn to appreciate the power of probability there is a lot of money to be made as a Forex trader, but there are no guarantees.
Who is responsible for my losses?
You must always take full responsibility for your actions as a trader and be honest with yourself at all times, and this is vitally important as you build your knowledge and skill over the coming months and years ahead. Any trade you take, you must understand the risk and accept the risk that you are taking on each trade. You need to be completely comfortable with the risk and accept complete responsibility for any trade result, whether positive or negative.
Money management is the key to success long term.
Source: LTG GoldRock, US Blog
LTG GoldRock Investment Philosophy: Get Rich Slowly
In the world of Forex, how does one determine a legitimate system from a scam? Is it in the performance… the advertising… the colors of their website??? Ultimately the answer is up to you as the trader, however, we feel in Forex one of the main factors to consider is the investment philosophy.
LTG GoldRock’s philosophy?
Get rich slowly.
LTG GoldRock on Stop-Loss Orders
You will not get your decision correct every time trading Forex and you must limit your loss by using a stop loss order on all trades you place. You also need to be able to calculate 1% to 2% risk with a Forex risk calculator to ensure that when your account is trading a base currency that is not the same base currency as your account you are able to still maintain your risk management, and preserve capital on losing trades. This is something LTG GoldRock emphasizes for all traders.
LTG GoldRock’s view on using a risk calculator is simple: If you do not have or are not provided with a Forex risk calculator do not trade Forex as you will not know how to manage risk appropriately.
Forex and Risk
All forms of investing have an element of risk and Forex trading is no different. There is an opportunity for profit and also an opportunity for loss and you should always make informed decisions before investing in any financial product. LTG GoldRock is aware of these risks and works to educate traders through their Learning Center, live webinars, and in the Live Trading Room.
Forex is the largest traded market in the world with over 3 trillion dollars a day traded. You can be as large a trader or as small a trader as you like however the only money you should be risking in Forex is money you can afford to lose. (more…)