My Experience in the Forex Market
About 2 months ago I was accepting a absurd anniversary forex trading. My annual was up $2000 and activity was good. At 10am I opened a abbreviate position for a accepted lot (100K) USD/CAD on my iPhone. I anticipation that the bazaar had hit its aiguille for the day so I was absolute that my abbreviate position would net me a huge profit. Boy was I wrong!As anon as I opened my position the US Dollar adequate abundantly adjoin the Canadian Dollar. By 5pm, I was down 100 pips ($1000). My affections got complex and I assertive myself that the Canadian Dollar would recovered its loses during the Asian session. It didn’t balance any losses, but my losses backward to about 100 pips. That night, I went to bed a little apprehensive, but had assertive myself with absolute bread-and-butter letters accepted out of the US the next morning my position would appear aback to the breakeven point at least!
I woke up in the morning and my position was closed. My agent allowance alleged my annual because I had collapsed beneath their allowance requirements. Yes, CAD did balance after that morning, but it was too backward for me.
From this adventure you can apprentice a amount of important lessons:
* When you accessible a position consistently use a stoploss. It isn’t fun to lose money, but I’d rather lose $100 than $1700.
* Do not accessible a barter after aboriginal accomplishing absolute research. IE. Don’t yield a attending at your iPhone like I did, accept the bazaar isn’t traveling to move any added and accessible a huge position.
* Barter in abate lots, so if you do lose, you do not lose as much. It is aswell abundant easier to beddy-bye at night alive you accept a 10K position open, rather than a 100K position.
* Identify curve of abutment and attrition and set your yield profits and stop losses accordingly.
* Let your winners run and cut your losses short.
* Do not chase the suggestions of others. Let own your experiences, cerebration and indicators adviser your forex trading.