According to our research and surveys, too many rookie and unseasoned Forex traders just lack the knowledge on the proper risk management of each trade, and quite too frequently, end up with the same result: total obliteration of their accounts.
This is what we have found that is occurring. Forex has gained ardent participants so rapidly that a lot of rookie Forex traders have just dived right in, opened an account and started placing trades without any concrete idea or feasible trading system in place.
It goes without saying that the problem with this behavior is lack of understanding of how to properly trade foreign currencies and the extreme risks the capital will be exposed to in consequence. Many times trading is first for traders, and learning secondary.
The end result of that education is the loss of the balances of their account. Hey, let’s not deceive ourselves, trading a demo account is vastly different than using real money to trade. Your emotions will behave differently; you will diverge in applying your trading principles/rules; and you will ignore risk with the demo account but be overcautious with your live account (often to your detriment).
Turn your thought process around — trading second, learning first. As a matter of fact, people’s thoughts about Forex need to be changed, and this is a necessity. First, learn the correct way to trade, BEFORE applying that insight in the market and using it to trade.
As a component of the learn first process – the NUMBER ONE Forex trading fundamental which new, unseasoned or defeated traders should take to heart is how to MANAGE RISK FIRST in every individual trade.
Bill Poulos, among the most esteemed Forex instructors, released a video today showing traders PRECISELY how to trade Forex the right way. In addition to how traders can make more trades go their way by cutting out risk, it is very calm thinking and not what is being shown by most of the alleged ‘Guru’s’ out there.
Here is the video to watch:
Traders will learn a better way of trading by understanding the importance of managing risk FIRST and be imparted with a different perspective, a system for risk avoidance and a concrete set of rules to use for trading.