Money Management

• Gambler's Conceit

  April 19, 2012 at 5:36 AM

  That high leverage is dangerous is well-known to most people, but it is not unusual to make spectacular profits with a highly leveraged account, just as it is not unusual to throw three heads in a row during a coin-tossing competition. Read More

• Five Top Money Management Tips

  April 04, 2011 at 4:41 PM

  Trading the forex market without safeguards can be like skydiving without a parachute. Anyone serious enough about trading would do well to incorporate money management techniques to their trading plan to protect their portfolio. Read More

• Forex Position Sizing Strategies

  April 04, 2011 at 4:37 PM

  Selecting a suitable position sizing method can affect your success as a forex trader as much as choosing a direction to trade in the forex market. Read More

• Leverage and its Risks

  April 04, 2011 at 3:39 PM

  Leverage can be defined as the amount of a trading position you can control with a given amount of margin, i.e. money placed on deposit as collateral. Read More

• Good Forex Trading Technique Involves Taking Losses

  February 23, 2011 at 2:00 PM

  Most seasoned forex traders will be more than happy to tell you about their big winning trades, but not so many will be forthcoming about their worst losing situations. Read More

• Key Risk Management Principles for Forex Trading

  February 23, 2011 at 2:00 PM

  Many novice forex traders begin trading without a trading plan, and this is one of the primary reasons why the vast majority of new traders lose money. Read More

• Clustering Illusion - Seeing Non-Random Sequences in a String of Random Data

  February 23, 2011 at 2:00 PM

  Clustering Illusion is the tendency to see non-random sequences in a string of random data. It is especially dangerous for traders, because perceiving a non-random pattern in a random string of wins or losses may lead us to increase leverage... Read More

• Using the Z Score to Determine Trade Size and Boost Performance

  February 23, 2011 at 2:00 PM

  Suppose that we have a trading method which gives us great confidence, produces satisfactory results over a long time, and which refined through a long period of study and experimentation. Read More

• Useful Forex Trading Maxims on Money Management

  February 23, 2011 at 1:59 PM

  One of the best things you can do when just starting out trading forex is open up your mind to learning from more experienced traders. In many cases, their words of wisdom have been encapsulated in key market maxims. Read More

• Assessing Risk-Reward Ratios for Your Forex Trading Business

  February 23, 2011 at 1:59 PM

  Naturally, many forex traders focus on how not to lose money, and this is an important part of a risk management strategy when trading. Read More

• Use Caution With Managed Forex Accounts

  February 23, 2011 at 1:59 PM

  Legitimate managed forex trading accounts may not be the easiest investment vehicles to find in today's forex market. Many unfortunate people have found to their dismay that their forex managed account funds have been stolen by fraud perpetrators operating what... Read More

• Forex Trading Versus Gambling

  February 23, 2011 at 1:59 PM

  Numerous attempts have been made to simplify trading in the forex market, and while a degree of success has been achieved in this area, trading forex is more than installing a trading platform, funding an account and clicking a buy... Read More

• Money and Risk Management Considerations

  February 23, 2011 at 1:59 PM

  A key component to achieving an optimum trading mindset consists in having a sound money and risk management component in the trading plan. Read More

• Popular Techniques Involving Position Sizing

  February 23, 2011 at 1:59 PM

  Trading forex is now so easy that novices may be tempted to jump into trading the forex market without having first obtained a good understanding of how it works and having a plan for making and managing their money. Read More

• Managing Trading Risk With Stop Orders

  February 23, 2011 at 1:58 PM

  Just about any forex trader who wishes to avoid watching the forex market constantly when they have a position will want to consider leaving stop orders in the market to help them manage their risk. Read More

• Taking Profits When Trading

  February 23, 2011 at 1:58 PM

  Although much of risk management focuses on cutting losses quickly, a trader also needs to learn how to take profits appropriately when trading. Read More

• Position Sizing Using the Risk Reward Ratio

  February 23, 2011 at 1:58 PM

  Position sizing involves making an objective decision about what positions to take when trading, and it makes up an important part of just about any sound money management strategy. Read More

• Trading Forex and Gambler's Conceit

  February 23, 2011 at 1:58 PM

  Since trading forex involves taking risk, much like gambling, traders would do well to learn from some of the mathematical concepts that underlie the theory of gambling. Read More

• Efficient Forex Trading Risk Management

  February 23, 2011 at 1:58 PM

  When it comes to the elements of your overall forex trading plan that can make or break your forex business, perhaps the most important is your risk management strategy. Read More

• Trading Forex and Gambler's Ruin

  February 23, 2011 at 1:57 PM

  Trading forex involves taking risk and so does gambling. As a result, forex traders can often benefit from understanding some of the theoretical ideas developed by statisticians and other mathematicians who have studied the process of gambling. Read More

• Trading Forex and the Gambler's Fallacy

  February 23, 2011 at 1:57 PM

  Trading in the forex market means learning how to take and manage risk, and this process has quite a bit in common with successful gambling methods as well as gambling pitfalls. Read More

• Martingale Trade Sizing and the Gambler's Fallacy

  February 23, 2011 at 1:52 PM

  Over the years, forex has acquired such a bad reputation that there are books published sold with statements similar to the below: Read More