No safety net in trading futures, options or forex!!! - Revisit
Win or lose. No Hold please!
If you dislike the ideas of losing your money then it is better for you to avoid forex, futures and options as such financial instruments are invented for the purpose of winning and losing.
You can't really hold on to them as there will be time decay risks and incur additional financial costs for holding them overnight.
No Time to watch the market
If you don't have plenty of time to watch the market, how could you afford the time and efforts to participate in such highly time sensitive and breaking news driven speculative adventures.
Know the differences ... Gambling - investment - speculation and Are you investing or speculating?
Not for income
What is your financial objective of coming into the market?
If your financial objective is to build future wealth for retirement and to fight inflation then you are better off dealing with assets-based financial products such as stocks rather than highly speculative products that are invented for the purpose of providing income streams for day traders.
Hate stop losses
If you hate stop losses and most of the time couldn't honor them, then participating in win or lose activities is naturally bad for your health over long term.
Posts
A Systematic Approach: How Dimensional’s Global Targeted Value Selects
Stocks
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The Dimensional Global Targeted Value is one of the funds that are
available for investment if you have an adviser that can recommend
Dimensional funds. ...
3 hours ago
Risk comes from not knowing what you are doing.
ReplyDeleteThere are 3 criteria to determine which currencies to buy:
a) The currency must have relatively higher interest rate than other currencies.
b) The nation must have budget surplus.
c) GDP growth must be healthy and positive.
After determine which currency to buy, check out the trend of the currency. The saying that “the trend is your friend” is always true. We will use our trend strategy to determine the medium term trend of the currency pair.
Next we need to find out the behaviour of the currency pair that we want to trade. This can be performed using our FX Behavioural Software. After finding out the past behaviour of the currency pair, we can use this information to generate buy / sell signals.
We will always buy near a support level and we will sell near a resistance level.
Next we will determine where is our stop loss and target loss. Make sure that you do not risk more than 2% of your capital for each trade.
This is how we trade and we have been doing well in our trading.