Fixed position size for newbies

If you’ve traded any security, you’ve heard the old axiom about keeping your losers to a minimum and letting your winners run. The latter part of that expression is self explanatory. Most forex traders know that they don’t want to cut their winning trades. Simply keep moving your stops up as the trade continues to move in your favor and you’ll be on course for locking some nice profits. Cutting losing trades before they turn into disasters is what many traders struggle with when they enter the world of online forex trading. Bailing on any trade, winner or loser, is an emotional thing for traders, especially rookies, but it should be mechanical, not emotional.

The last hedge free forex trading week is over. When trading will resume on Monday, August 3rd, the new NFA FIFO regulations will be in effect. I assume that most American traders aren’t aware of the new regulations, and will feel it by themselves when the software changes.

It is well-known that a majority of forex traders fail. But it is not equally well-known that the main cause behind such a high rate of failure is unrelated to the market itself. Not analysis, and strategy, not education and learning, but lack of emotional restraint and mental composure are the leading causes that lie behind the many failures of forex traders. Although it is popular to blame forex brokers for the failure of risk controls and lack of a correct attitude to trading, the fact that a majority of these institutions are doing their business while being monitored by authorities shows that the source of the problem may lie elsewhere  Indeed, experienced traders readily acknowledge that the most important lessons learned by any beginning trader is differentiating between what happens in the market, and what the trader perceives. Price action distorted by excessive emotional responses is the candidate to being the worst enemy of the forex trader.

Note the Unemployment Rate as well. It now stands at 7.2% . This is worse than 7.0% that was expected.