Friday, September 19, 2008

Hi all,

One important thing I learned during my trading period is using a low leverage. I lost a few dollars to margin call due to high leverage. I feel that slow and steady wins the race and this applies to forex also. Remember, forex is not a get rich quick scheme. Here, you need to plan your trade and act on it. High leverage = High Risk and Low leverage = low risk.

You are safer with smaller lots if you are still learning. If it goes the wrong way, then wait and see when it starts moving in your direction and buy another small lot to average it and to reduce your average cost price. This will help you to get out of the trade more quicker and with good profits.

Another important thing is to have your own trading strategy and even more important is following your strategy with patience and discipline.

Good luck in trading.

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