pakedu.net, Pakistan Education Network

Close Open Orders: 2009-08-25 16:42

What is up! Looks like I couldn’t catch a break during today’s trading session as my short orders at 136.00 never triggered. It was a volatile day for EURJPY as the pair fell to 134.00 during the Asia and European trading session then rallied to just under 136.00 during the US trading session. My short orders were missed by less than 10 pips! It was an opportunity missed as sellers pushed EURJPY back down for the rest of the US trading session. (more…)

If you want to make money trading and consistently make money trading, it’s important to review proven trading methods and techniques on a regular basis.

There are always new interpretations or processes to be integrated into your current system but maintaining a structured approach to the market is the best way to achieve consistent returns.

It is also crucial to have a precise set of rules to control your actions when positions don’t react as expected.

These guidelines must be simple enough to remember and execute. These rules should apply across a wide range of situations and be designed to compensate for one’s weaknesses and inadequacies. To be effective in the long-term, they must be formulated to help you maintain discipline on a general basis and offer a timely memory aid for difficult situations.

Consider these well-known maxims:

Learn to limit losses and your profits will grow.

The science of successful trading is less dependent on making profits, but rather on avoiding losses. The need to restrict drawdowns and prevent losing trades from significantly eroding capital should be your main objective in any type of trading.

To reduce losses, most traders prefer to use a specific plan with pre-determined exits. Stop-loss orders can be used to prevent making bonehead decisions while in a trade and “trailing” stops can be utilized to follow a position into greater profits while protecting for unexpected reversals. In addition, not only must losses be limited, but all positions must be reviewed regularly to ensure that you total trading capital risk is kept to a practical minimum.

Know your limits before you open any position! (more…)

If you want to make money trading and consistently make money trading, it’s important to review proven trading methods and techniques on a regular basis.

There are always new interpretations or processes to be integrated into your current system but maintaining a structured approach to the market is the best way to achieve consistent returns.

It is also crucial to have a precise set of rules to control your actions when positions don’t react as expected.

These guidelines must be simple enough to remember and execute. These rules should apply across a wide range of situations and be designed to compensate for one’s weaknesses and inadequacies. To be effective in the long-term, they must be formulated to help you maintain discipline on a general basis and offer a timely memory aid for difficult situations.

Consider these well-known maxims:

Learn to limit losses and your profits will grow.

The science of successful trading is less dependent on making profits, but rather on avoiding losses. The need to restrict drawdowns and prevent losing trades from significantly eroding capital should be your main objective in any type of trading.

To reduce losses, most traders prefer to use a specific plan with pre-determined exits. Stop-loss orders can be used to prevent making bonehead decisions while in a trade and “trailing” stops can be utilized to follow a position into greater profits while protecting for unexpected reversals. In addition, not only must losses be limited, but all positions must be reviewed regularly to ensure that you total trading capital risk is kept to a practical minimum.

Know your limits before you open any position!

Just as setting stops on each individual trade is an absolute must, a “maximum allowable loss” must be considered when managing your total trading capital. (more…)