Currency trading price movement is the way to fortune for the ordinary person. With a small amount of capital a person may trade online from home. The opportunities are there every day to make huge profits.
When the British Pound fell into a declining trend some years ago one man made immense profits. He remains one of the wealthiest in the world, to this day. He sold the pound while the trend endured and was able to lock in huge profits.
Stop loss mechanisms are critical. Once a trade is profitable a stop loss may be set to secure at least a minimal profit. The trade will be closed to prevent a loss even though the profit may only be small. Risk has been avoided but so too has been the opportunity to profit from a continuation of the initial trend.
The power of the stop loss can also work against traders. If they set stop losses that are too close to the entry price of trades they may be stopped out by temporary reversal before they have time to profit from longer term trends. A number of such small losses can in fact wipe out an entire capital amount.
Every trade entails some initial loss which is the cost of the trade. The broker takes this risk-free amount. A nervous trader may be unable to tolerate much more than the initial loss of a trade. A number of his trades may be closed out for small losses. The small losses may accumulate wiping out his entire capital amount. Even some investment bankers who play with other peoples' money can wipe out substantial amounts in this way.
Currency trading price movement may be compared with a bunch of delicious ripe grapes suspended above the eyes of a hopeful trader. He has only to climb a ladder to pluck them. The rungs of the ladder are good luck, iron discipline, nerves of steel, and an excellent trading strategy. If one of these rungs is absent the grapes may remain where they are, as sweet as ever notwithstanding the promises of currency trading price movement.
When the British Pound fell into a declining trend some years ago one man made immense profits. He remains one of the wealthiest in the world, to this day. He sold the pound while the trend endured and was able to lock in huge profits.
Stop loss mechanisms are critical. Once a trade is profitable a stop loss may be set to secure at least a minimal profit. The trade will be closed to prevent a loss even though the profit may only be small. Risk has been avoided but so too has been the opportunity to profit from a continuation of the initial trend.
The power of the stop loss can also work against traders. If they set stop losses that are too close to the entry price of trades they may be stopped out by temporary reversal before they have time to profit from longer term trends. A number of such small losses can in fact wipe out an entire capital amount.
Every trade entails some initial loss which is the cost of the trade. The broker takes this risk-free amount. A nervous trader may be unable to tolerate much more than the initial loss of a trade. A number of his trades may be closed out for small losses. The small losses may accumulate wiping out his entire capital amount. Even some investment bankers who play with other peoples' money can wipe out substantial amounts in this way.
Currency trading price movement may be compared with a bunch of delicious ripe grapes suspended above the eyes of a hopeful trader. He has only to climb a ladder to pluck them. The rungs of the ladder are good luck, iron discipline, nerves of steel, and an excellent trading strategy. If one of these rungs is absent the grapes may remain where they are, as sweet as ever notwithstanding the promises of currency trading price movement.
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