The Best of Advices by Professionals (and not only!) .... by f-man

[f-man]

I have been studying the Forex market very intensive the past year. I read a lot of books, visited seminars, webinars, trading rooms, I did a lot of Internet research and almost everything that can help a trader understand the market. I came across a lot of advices, clever examples, text excerpts & statements that I actually would like to share with you in this threat.

 

[f-man]

Money management - simple explained

I will start with this one, since it is the one I read and thought I need to share this with others.

Let's say you want play a game with a friend, where you toss a dime and the winner wins the dime and the loser has to replace it. You have to play this game 100 times.

If each player has 20 dimes, most probably after the game has finished, each player will still have about 20 dimes, since the chances are 50/50.

If you only have 4 dimes, where the other player still has 20 dimes, most probably you will end up having lost all 4 dimes before the game finishes, because it is possible to lose 4 times in a row and have no replacement to continue the game!

So before you place a trade, think how many times you can afford to lose a trade of that size before your account is wiped out.

 

[f-man]

Trading is about making and keeping money. A big part of that is know when not to trade!

 

[f-man]

Stop Loss

Imagine you realized that you got on the wrong train and this train is going in the opposite direction that you wanted to go. Do you get out on the first possible stop or do you ride till the final destination of the wrong route?

 

[f-man]

Japanese Candles

Candle sticks are the best charting method! Look at the outside and know the inside!

 

[Pharaoh]

No matter where you go, there you are.

 

[FPAK47]

Imagine you realized that you got on the wrong train and this train is going in the opposite direction that you wanted to go. Do you get out on the first possible stop or do you ride till the final destination of the wrong route?

i would get out on the first train stop, learn my lesson, never make a mistake twice, and take the next train back, without doubling the lot size, trying to make up what i lost behavior will only cause me more loss.

 

[Pharaoh]

i would get out on the first train stop, learn my lesson, never make a mistake twice, and take the next train back, without doubling the lot size, trying to make up what i lost behavior will only cause me more loss.

I'd get off the train and call a taxi to get me back to where I was going.

 

[f-man]

I'd get off the train and call a taxi to get me back to where I was going.

And the "taxi driver" is the fund manager?

 

[f-man]

The main Tool of technical analysis

The main tool of technical analysis is neither the pencil nor the computer. It is your brain!