Two Timeless Rules in FOREX Investing

RULE #1) ~ Cut your losers; let your winners ride.

One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in FOREX land, and you should always know one fact: YOU WILL HAVE LOSING TRADES.

Every FOREX trader does. The key to being a consistent, predictable, reliable trader is to, at the end of the day, add up more wins than losses. And, when you KNOW(based off your trading rules), without a doubt, that YES, indeed you are, in a losing trade, don't keep losing money (lowering your stop loss) just to *prove you are right* or your rules are wrong (however you want to look at it).

Let's face it - you can't turn a sow's ear into a silk purse. You can't change the spots of a leopard and you can't turn chicken poop into chicken salad. The best trades are usually "right" immediately (the techniques, rules, methods and strategies you can learn in our resources list will be your best indicator for just what a "right" trade really is).

Remember, people have been trading the markets for a hundred and sixty years. The smart traders know there's going to be another trade. Cut your loses short and compound those winning positions.

RULE #2) ~ Thou Shall Not Trade the FOREX Without the Placing of a Stop Loss Order.

When you place a STOP order, right along with your ENTRY order, via your online trade station, you've just automatically prevented a potential loss from "running" too far.

Before initiating any trade, if you haven't already figured out at what point you would be wrong and would want to cut your loses or, at the very least, reevaluate your position from the sidelines, then you shouldn't be putting on the trade in the first place.

Show us a FOREX trader who doesn't use stop loss orders and we'll show you someone who loses a lot of money.

Omar Vargas
Forex trader and freelance writer
http://www.1-forex.com

In The News:
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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.koreatimes.co.kr/www/news/nation/2008/10/123_32638.htmlcid=0ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNEqHZA_aMipN9h3_G64c9cqtMxhTgSeoul Shares, bCurrency/b Jump for 2nd Day/abrfont size=-1font color=#6f6f6f코리아타임즈,nbsp;South Koreanbsp;-/font nobr1 hour ago/nobr/fontbrfont size=-1The Korean bcurrency/b was btrading/b at 1201.5 won as of 9:16 am, up 36.5 won from Monday#39;s close. The won Monday jumped 71 won to close at 1238 won against the b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.marketwatch.com/news/story/tokyo-stocks-surge-over-12/story.aspx%3Fguid%3D%257BB12ECD6E-DA27-424C-A159-4B74E35CB60D%257Dcid=1257467928ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNFrM2hxd-MUsgYA_TKkyHafcCIuGQTokyo stocks surge over 12%; financials on fire/abrfont size=-1font color=#6f6f6fMarketWatchnbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1In Asian bcurrency trading/b, the US dollar jumped to 102.79 yen recently, compared with 100.80 yen late Monday. November crude-oil futures rallied as much as b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/business/feedarticle/7860415cid=1257478029ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNFz1sd8rRGDYDSCipXChXVR2SIA7w* Yen slips, Aussie jumps on bank rescue plan hopes/abrfont size=-1font color=#6f6f6fguardian.co.uk,nbsp;UKnbsp;-/font nobr22 hours ago/nobr/fontbrfont size=-1quot;I don#39;t think we#39;re out the woods,quot; said Gerrard Katz, head of North Asia bcurrency trading/b at Standard Chartered in Hong Kong. quot;It#39;s a very fragile bounce b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/marketsNews/idUSSP35797720081013cid=1257478029ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNFD_-4La5uCATD7PxRcMDYASJqCewRPT-FOREX-Yen falls, Aussie surges as bank rescues take shape/a font size=-1 color=#6f6f6fnobrReuters/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257478029hl=ennobrall 26 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://english.donga.com/srv/service.php3%3Fbicode%3D040000%26biid%3D2008101356748cid=0ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNESD_JlcNMmMdgfgi_9jHHiGQdbBAFX bTrading/b to Get Tighter Scrutiny/abrfont size=-1font color=#6f6f6f동아일보,nbsp;South Koreanbsp;-/font nobrOct 12, 2008/nobr/fontbrfont size=-111, saying it hopes to restore order in the financial market suffering from large fluctuations of foreign bcurrency/b rates. The plan has six targets: the b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.washingtonpost.com/wp-dyn/content/article/2008/10/09/AR2008100900352.htmlcid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNHElMgXu-WlUmOBsNbZiajw7B0oWgimg src=http://news.google.com/news?imgefp=TKeRHZzkY1YJimgurl=media3.washingtonpost.com/wp-dyn/content/photo/2008/10/09/PH2008100900353.jpg width=80 height=77 alt= border=1brfont size=-2Washington Post/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.dailyreckoning.com/Writers/Butler/Articles/101308.htmlcid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNGgKl7cVQldj2ngoJkB9fEuJLlmWQThe Fed Floods the Markets with US Dollars/abrfont size=-1font color=#6f6f6fDaily Reckoning - American Edition,nbsp;MDnbsp;-/font nobr6 hours ago/nobr/fontbrfont size=-1bTrading/b in Iceland#39;s krona all but dried up last wee as the country#39;s banks collapsed, sending the bcurrency#39;s/b bid/ask spreads skyrocketing. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.rttnews.com/Content/AsianMtUpdates.aspx%3FNode%3DB3%26Id%3D739119cid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNFwiIugfg0NemjCymjhU7F-iRNyDAAsian markets rebound on bank rescue plans - Asian commentary/a font size=-1 color=#6f6f6fnobrRTT News/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://allafrica.com/stories/200810131096.htmlcid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNHLrFX7-6I6ISaklVXKkX7t6dh_mwNigeria: How Safe Are Country#39;s External Reserves?/a font size=-1 color=#6f6f6fnobrAllAfrica.com/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.mw.ua/2000/2040/64321/cid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNG_gRdapWI1EcHkhVXDH_mdjvfmTwAnatoliy SHAPOVALOV: “The issue is not about the devaluation of b.../b/a font size=-1 color=#6f6f6fnobrMirror Weekly (Zerkalo nedeli)/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://news.xinhuanet.com/english/2008-10/14/content_10189800.htmcid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNH24NpC7WL1ef74esHWobyKwgWZxwnobrXinhua/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.ibtimes.com/articles/20081013/u-s-dollar-falls-as-european-central-banks-conduct-dollar-auctions.htmcid=1257463299ei=hRL0SNzyNImE6QOepdiZDQusg=AFQjCNGg706JYAqMDTPRGkB6tH6Fr0uQXAnobrInternational Business Times/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1257463299hl=ennobrall 748 news articles/nobr/a/font/div/font/td/tr/table
currency trading - Google News


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