Most people in their bid to make it quick in FX, engage in trading suicide. They get carried away by the wind of profits and before they know; their trading account will come crashing like a pack of badly arranged cards. So they develop heart problem, or even contemplate suicide, all these artificially inflicted problems arise as a result of building an account just for the profit motive and ignoring all the rules and guides given to them by professional traders. Some even build their accounts and refuse to withdraw their little profits and rebuild again until they have withdrawn their initial start up capital, only to watch helplessly as it crashes for no reason they can be proud of, but refusing to have a trading plan.
While some others, in a desperate and futile bid to make quick money in the FX market, entrust their account to “fund managers” who may not have made a single profit on their own account and the results is better be imagined “disastrous”.
“Whether you are a fund manager or an Fx trader follow these simple keys and not save yourself from avoidable pains and unnecessary risk in Fx trading:
1. Get yourself a decent, reliable and proven trading system
2. Make sure you receive quality training and risk/port folio management.
3. Develop a trading plan, set achievable goals and stick with it
4. Never increase your lot size until you would have withdrawn your initial capital and grow your account back
5. Make sure you have successfully and profitably manage your own Fx account before taking on the management of other people’s fund, If you have to)
6. Very important, as you may have been used to do not take more than 20% or 30% of your account and avoid over trading.
Components of a decent trading system
A decent trading system helps you identify trends as early as possible and also protect you from possible whipsaw. To identify a decent trading system test it with the following:
(a) Time frame (b) Entry and exit (c) Indicators you help you identify new trends, (d) Indicators to help you confirm the trend and (e) The risks the system allows.
You may develop one yourself or buy a reliable one from a trusted source.
