Jun 13
Never risk more than 2% per trade. This is the most common - and yet also the most violated - rule in trading and goes a long way toward explaining why most traders lose money. Trading books are littered with stories of traders losing one, two, even five years' worth of profits in a single trade gone terribly wrong. This is the primary reason why the 2% stop-loss rule can never be violated. No matter how certain the trader may be about a particular outcome, the market, as the well known economist John Maynard Keynes, said, "can stay irrational far longer that you can remain solvent."

Swinging for the Fences

Most traders begin their trading careers, whether ...

written by Trading Teacher

Jun 13
I’m constantly trying to warn naive (and sometimes the most sophisticated) investors that people promising unthinkable returns but refusing to disclose all the financial details are rip off artists.  If you do not have a clear cut description/prospectus/term sheet of what products are being invested in, where the assets are being held and who is monitoring the performance (like KPMG, E&Y, etc.) – chances are good that you have been approached by a scammer looking to part you from your hard earned money. Transparency is key in the investment arena. We already had a Texan Professor as well as a Florida money manager charged with running a Ponzi scheme but this time the scam was more targeted: it was used to rip off Korean-Americans.  Full release: CFTC Charges ...

written by Trading Teacher

Jun 09
Here we will look at how to make Forex profits with a timeless strategy anyone can understand and use. Let’s take a look at the strategy in more detail. The strategy we are going to look at is a long term Forex breakout strategy and the reason it works is based upon the following two facts. 1. Forex markets trend for long periods and these trends last for weeks or months, so locking into and trading these trends with leverage, can make huge profits but how do you get into them? The answer is simple by using breakouts: 2. If you look at any currency bull trend, it will start its trend from breaks to new highs and it will continue its trend, by ...

written by Trading Teacher

Jun 05
Before you start jumping into day trading, there are some things that you have to know about.  The first thing that comes to my mind is the fact that over 95% of day traders are losing money. If you weren’t aware of this statistic, I don’t want it to deflate your optimism that you have for day trading. I know that the statistic is rather daunting, and you may all of a sudden feel that it is impossible to make money day trading.  Don’t let it get you down.  The majority of the people fail do so because they don’t have the proper determination needed to succeed. The honest truth is that there really isn’t much separating the 5% who are making ...

written by Trading Teacher

Jun 03
Forex isn’t the same as the stock exchange which carries positions for a much lengthier time span. Forex trading (also known as currency trading) is the buying and selling of currencies in order to make a profit. Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. Using forex trading strategies that 99% of traders use will not make you successful. You will need a rare, innovative and original trading strategies related to how the market behave in order to become more successful in the forex trading business than you have ever dreamed of. After understanding the basics of how the forex market works, you ...

written by Trading Teacher