Category Archives: Low risk trading

Why Most Traders Loser Money

lose money on forex

It is a very sad fact that the majority of traders loser money within the first 6 months of trading. It is even sadder that you might end up being one of those traders. It is our goal with this article to help prevent you from becoming another casualty of the markets. In this article we will discuss all things that cause traders to lose their shirt. If you can get rid of these traits, then you will be able to survive the markets. Sometimes surviving is all you can do.


Money Management

We know that this seems so boring but proper money management is the key to lasting a long time in the market. Most Traders who blow their account do not practice proper money management. Proper money management is designed so that you can live to trade another day. It is created so that when you are trading that you get to make 100-1000 or more trades before your account even risks being wiped out. What bad traders due to constantly change their trading size based on current win and loss rates and this is awful. Your trading size should stay consistent. Most good traders only risk 1 to 10% of their account on any one trade and this is what you also need to start doing.

Have A Good Strategy

Having a good strategy means having a high probability strategy, one that you can use that will make you profitable or at the very least break even.

What is the least risky way to trade Forex?

low risk trading

If You are asking what is the best way to trade forex, then you are a very smart person. We do not say that just to build you up. We say that because it is very true. It is very true because the average person who is new to forex rarely ask that type of question. Most people who are new to trading just jump right in and gamble until the money is all gone. We hope that you really are on the right path because forex takes no prisoners.

First piece of advice is for you to only trade off of the daily chart. We suggest that you only trade off of the daily chart because it is the safest way to trade. It s the safest way to trade because using the daily chart you see less noise. By noise we mean that on a long time frame you would not feed the random ebb and flow of the market that happens moment to moment. You are only seeing the big moves of the day. By only seeing the big moves of the day you are able to make high probability trades.

The majority of people who try to trade the markets do not have the skills or the discipline to trade shorter time frames. And we doubt that you have the skills either. You might want to prove us wrong, go ahead, Trading is a zero-sum game and we can’t wait to take your money.

But guess what, there is a way to day trade and to have high probability trade without trading on a shorter time frame. You can actually day trade off of the daily chart and try to make directional trades based off of the material on the daily chart. You will be surprised how accurate the daily chart can be for a 24 hour period. What we have found is that this is not only a profitable way to trade it is also a very stress free way to trade the markets.

Hopefully you would use the wisdom shared in this article and you will become one of the profitable traders in the market. The information we shared with you is very fundamental and foundational to any profitable traders future. If you use this information you will be way ahead of the majority of people who are trading the markets.