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CONSERVATIVEFOREX TRADING    By    www.TheForexNittyGritty.com
DESPITE THE FACT THAT THERE AREMANY STRATEGIES FOR ONLINEFOREIGN EXCHANGE TRADING, MANYCHOOSE TO GAIN PROFITS ONLYTHROUGH ...
FOREX TRADERS SUCCEED IF THEYMAKE MORE MONEY THAN THEY LOSEIN TRADING THE MARKETS.    www.TheForexNittyGritty.com
IN CONSERVATIVE FOREX TRADINGONE SEEKS TO LOSE SUBSTANTIALLYLESS THAN ONE GAINS AND AS MUCHAS POSSIBLE NEVER TO LOSE ATRAD...
HOW IS THIS POSSIBLE?    www.TheForexNittyGritty.com
IS IT POSSIBLE TO NEVER HAVE A BADTRADE?     www.TheForexNittyGritty.com
IF ONE BUYS OPTIONS ON FOREIGNCURRENCIES THERE IS THE PRICE OFTHE OPTIONS CONTRACT BUT ONENEVER EXECUTES THE CONTRACTUNLES...
IF A TRADER LIMITS HIMSELF TO FARDISTANT AND OUT OF THE MONEYCONTRACTS HIS COSTS IN TRADINGFOREX ARE MINIMAL.     www.TheF...
THERE IS NEVER A TRULY BAD TRADEAND THERE WILL BE AN OCCASIONALEXCEPTIONAL TRADE.    www.TheForexNittyGritty.com
IN ADDITION TO SMART OPTIONSTRADING OF CURRENCY PAIRS,THERE ARE EXAMPLES OF STRATEGICFOREX TRADING IN WHICH A TRADERONLY P...
THESE ARE EXAMPLES OFCONSERVATIVE FOREX TRADING.    www.TheForexNittyGritty.com
OPTIONS MAY BE THE BESTOPTION FOR CONSERVATIVEFOREX TRADING   www.TheForexNittyGritty.com
AS WE MENTIONED ABOVE, BUYINGOUT OF THE MONEY OPTIONS CAN BEA REASONABLE MEANS OF KEEPINGTRADING COSTS DOWN, NEVERHAVING A...
AS IN ALL MARKET TRADING, ATRADER NEEDS TO BE FAMILIAR WITHTHE FUNDAMENTALS THAT DRIVECURRENCY PRICES,    www.TheForexNitt...
CHOOSE THE MOST PROFITABLEFOREX PAIR BASED ON ANALYSIS, ANDWATCH MARKET SENTIMENT USINGANY OF SEVERAL TECHNICALTRADING TOO...
SIMPLY PICKING OUT OF THE MONEYCURRENCY POSITIONS AND BUYINGPUTS AND CALLS CAN BE A WAY OFLIMITING LOSSES BUT STILL LOSING...
THE POINT IS TO PICK WINNERS, LIMITYOUR INVOLVEMENT IN THE MARKETTO PROMISING SITUATIONS, ANDCONSERVE CAPITAL WHILE WAITIN...
THIS APPROACH CAN WORK WHENBUYING CALLS OR PUTS.    www.TheForexNittyGritty.com
A CALL GIVES THE TRADER THE RIGHTTO BUY ONE CURRENCY WITH THEOTHER AT A SET PRICE NO MATTERHOW HIGH THAT PRICE MIGHT GO UP...
A PUT GIVES THE TRADER THE RIGHTTO SELL A CURRENCY AT A SET PRICENO MATTER HOW LOW IT MIGHT GODOWN. IN NEITHER CASE IS THE...
THIS CAN BE PROFITABLE AS WELL ASCONSERVATIVE FOREX TRADING.    www.TheForexNittyGritty.com
PICKING ONLY THE BESTTRADES IS CONSERVATIVEFOREX TRADING   www.TheForexNittyGritty.com
CURRENCY TRADING CAN BEADDICTIVE AS ALL TOO MANYTRADERS FIND OUT TO THEIR DISMAY.    www.TheForexNittyGritty.com
CURRENCY TRADING IS FAST PACEDWHEN WORKING AT A TRADE STATION.    www.TheForexNittyGritty.com
THERE IS IMMEDIATE REWARD WHENEXECUTING A PROFITABLE TRADE.    www.TheForexNittyGritty.com
REWARDS OF PROFITABLE TRADESCAN ARRIVE RANDOMLY.    www.TheForexNittyGritty.com
THIS CAN SET UP AN INTERMITTENTREINFORCEMENT PATTERN THATSUCKS A TRADER INTO MAKINGINCREASINGLY BAD TRADES IN ALOSING SESS...
CONSERVATIVE FOREX TRADING ISNOT FREQUENT TRADING.    www.TheForexNittyGritty.com
IT IS WELL THOUGHT OUT TRADING INWHICH A TRADER PICKS VERY CLEARCUT RULES TO GUIDE HIS TRADINGAND FOLLOWS THEM.    www.The...
HE NEVER “PLAYS HUNCHES.”    www.TheForexNittyGritty.com
HE DOES NOT GET EXCITED AND HEDOES NOT GET DEPRESSED.    www.TheForexNittyGritty.com
HE ADDRESSES FOREIGN CURRENCYTRADING AS A BUSINESS ANDEXECUTES HIS TRADES WHEN THEODDS ARE GREATEST IN HIS FAVOR.    www.T...
HE EXITS TRADES AS SOON AS THEODDS OF SUCCESS ARE NO LONGERPERFECT.    www.TheForexNittyGritty.com
HE GOES HOME WHEN THE MARKETDOES NOT MAKE SENSE.    www.TheForexNittyGritty.com
THAT IS CONSERVATIVE ANDCOMMONLY PROFITABLE CURRENCYTRADING.    www.TheForexNittyGritty.com
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Conservative Forex Trading

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Conservative Forex Trading

Despite the fact that there are many strategies for online foreign exchange trading, many choose to gain profits only through conservative Forex trading. Forex traders succeed if they make more money than they lose in trading the markets. In conservative Forex trading one seeks to lose substantially less than one gains and as much as possible never to lose a trade. How is this possible? Is it possible to never have a bad trade? If one buys options on foreign currencies there is the price of the options contract but one never executes the contract unless it is profitable. If a trader limits himself to far distant and out of the money contracts his costs in trading Forex are minimal. There is never a truly bad trade and there will be an occasional exceptional trade. In addition to smart options trading of currency pairs, there are examples of strategic Forex trading in which a trader only picks the best trades and never “goes fishing” for a questionable trade. These are examples of conservative Forex trading.

Options May Be the Best Option for Conservative Forex Trading

As we mentioned above, buying out of the money options can be a reasonable means of keeping trading costs down, never having a losing trade, and making money on options trades. As in all market trading, a trader needs to be familiar with the fundamentals that drive currency prices, choose the most profitable Forex pair based on analysis, and watch market sentiment using any of several technical trading tools. Simply picking out of the money currency positions and buying puts and calls can be a way of limiting losses but still losing all of one’s trading capital over time. The point is to pick winners, limit your involvement in the market to promising situations, and conserve capital while waiting for winners. This approach can work when buying calls or puts. A call gives the trader the right to buy one currency with the other at a set price no matter how high that price might go up. A put gives the trader the right to sell a currency at a set price no matter how low it might go down. In neither case is the trader obligated to execute a contract and will only do so what it is profitable. This can be profitable as well as conservative Forex trading.

Picking Only the Best Trades Is Conservative Forex Trading

Currency trading can be addictive as all too many traders find out to their dismay. Currency trading is fast paced when working at a trade station. There is immediate reward when executing a profitable trade. Rewards of profitable trades can arrive randomly. This can set up an intermittent reinforcement pattern that sucks a trader into making increasingly bad trades in a losing session...

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Transcript of "Conservative Forex Trading"

  1. 1. CONSERVATIVEFOREX TRADING By www.TheForexNittyGritty.com
  2. 2. DESPITE THE FACT THAT THERE AREMANY STRATEGIES FOR ONLINEFOREIGN EXCHANGE TRADING, MANYCHOOSE TO GAIN PROFITS ONLYTHROUGH CONSERVATIVE FOREXTRADING. www.TheForexNittyGritty.com
  3. 3. FOREX TRADERS SUCCEED IF THEYMAKE MORE MONEY THAN THEY LOSEIN TRADING THE MARKETS. www.TheForexNittyGritty.com
  4. 4. IN CONSERVATIVE FOREX TRADINGONE SEEKS TO LOSE SUBSTANTIALLYLESS THAN ONE GAINS AND AS MUCHAS POSSIBLE NEVER TO LOSE ATRADE. www.TheForexNittyGritty.com
  5. 5. HOW IS THIS POSSIBLE? www.TheForexNittyGritty.com
  6. 6. IS IT POSSIBLE TO NEVER HAVE A BADTRADE? www.TheForexNittyGritty.com
  7. 7. IF ONE BUYS OPTIONS ON FOREIGNCURRENCIES THERE IS THE PRICE OFTHE OPTIONS CONTRACT BUT ONENEVER EXECUTES THE CONTRACTUNLESS IT IS PROFITABLE. www.TheForexNittyGritty.com
  8. 8. IF A TRADER LIMITS HIMSELF TO FARDISTANT AND OUT OF THE MONEYCONTRACTS HIS COSTS IN TRADINGFOREX ARE MINIMAL. www.TheForexNittyGritty.com
  9. 9. THERE IS NEVER A TRULY BAD TRADEAND THERE WILL BE AN OCCASIONALEXCEPTIONAL TRADE. www.TheForexNittyGritty.com
  10. 10. IN ADDITION TO SMART OPTIONSTRADING OF CURRENCY PAIRS,THERE ARE EXAMPLES OF STRATEGICFOREX TRADING IN WHICH A TRADERONLY PICKS THE BEST TRADES ANDNEVER “GOES FISHING” FOR AQUESTIONABLE TRADE. www.TheForexNittyGritty.com
  11. 11. THESE ARE EXAMPLES OFCONSERVATIVE FOREX TRADING. www.TheForexNittyGritty.com
  12. 12. OPTIONS MAY BE THE BESTOPTION FOR CONSERVATIVEFOREX TRADING www.TheForexNittyGritty.com
  13. 13. AS WE MENTIONED ABOVE, BUYINGOUT OF THE MONEY OPTIONS CAN BEA REASONABLE MEANS OF KEEPINGTRADING COSTS DOWN, NEVERHAVING A LOSING TRADE, ANDMAKING MONEY ON OPTIONS TRADES. www.TheForexNittyGritty.com
  14. 14. AS IN ALL MARKET TRADING, ATRADER NEEDS TO BE FAMILIAR WITHTHE FUNDAMENTALS THAT DRIVECURRENCY PRICES, www.TheForexNittyGritty.com
  15. 15. CHOOSE THE MOST PROFITABLEFOREX PAIR BASED ON ANALYSIS, ANDWATCH MARKET SENTIMENT USINGANY OF SEVERAL TECHNICALTRADING TOOLS. www.TheForexNittyGritty.com
  16. 16. SIMPLY PICKING OUT OF THE MONEYCURRENCY POSITIONS AND BUYINGPUTS AND CALLS CAN BE A WAY OFLIMITING LOSSES BUT STILL LOSINGALL OF ONE’S TRADING CAPITAL OVERTIME. www.TheForexNittyGritty.com
  17. 17. THE POINT IS TO PICK WINNERS, LIMITYOUR INVOLVEMENT IN THE MARKETTO PROMISING SITUATIONS, ANDCONSERVE CAPITAL WHILE WAITINGFOR WINNERS. www.TheForexNittyGritty.com
  18. 18. THIS APPROACH CAN WORK WHENBUYING CALLS OR PUTS. www.TheForexNittyGritty.com
  19. 19. A CALL GIVES THE TRADER THE RIGHTTO BUY ONE CURRENCY WITH THEOTHER AT A SET PRICE NO MATTERHOW HIGH THAT PRICE MIGHT GO UP. www.TheForexNittyGritty.com
  20. 20. A PUT GIVES THE TRADER THE RIGHTTO SELL A CURRENCY AT A SET PRICENO MATTER HOW LOW IT MIGHT GODOWN. IN NEITHER CASE IS THETRADER OBLIGATED TO EXECUTE ACONTRACT AND WILL ONLY DO SOWHAT IT IS PROFITABLE. www.TheForexNittyGritty.com
  21. 21. THIS CAN BE PROFITABLE AS WELL ASCONSERVATIVE FOREX TRADING. www.TheForexNittyGritty.com
  22. 22. PICKING ONLY THE BESTTRADES IS CONSERVATIVEFOREX TRADING www.TheForexNittyGritty.com
  23. 23. CURRENCY TRADING CAN BEADDICTIVE AS ALL TOO MANYTRADERS FIND OUT TO THEIR DISMAY. www.TheForexNittyGritty.com
  24. 24. CURRENCY TRADING IS FAST PACEDWHEN WORKING AT A TRADE STATION. www.TheForexNittyGritty.com
  25. 25. THERE IS IMMEDIATE REWARD WHENEXECUTING A PROFITABLE TRADE. www.TheForexNittyGritty.com
  26. 26. REWARDS OF PROFITABLE TRADESCAN ARRIVE RANDOMLY. www.TheForexNittyGritty.com
  27. 27. THIS CAN SET UP AN INTERMITTENTREINFORCEMENT PATTERN THATSUCKS A TRADER INTO MAKINGINCREASINGLY BAD TRADES IN ALOSING SESSION. www.TheForexNittyGritty.com
  28. 28. CONSERVATIVE FOREX TRADING ISNOT FREQUENT TRADING. www.TheForexNittyGritty.com
  29. 29. IT IS WELL THOUGHT OUT TRADING INWHICH A TRADER PICKS VERY CLEARCUT RULES TO GUIDE HIS TRADINGAND FOLLOWS THEM. www.TheForexNittyGritty.com
  30. 30. HE NEVER “PLAYS HUNCHES.” www.TheForexNittyGritty.com
  31. 31. HE DOES NOT GET EXCITED AND HEDOES NOT GET DEPRESSED. www.TheForexNittyGritty.com
  32. 32. HE ADDRESSES FOREIGN CURRENCYTRADING AS A BUSINESS ANDEXECUTES HIS TRADES WHEN THEODDS ARE GREATEST IN HIS FAVOR. www.TheForexNittyGritty.com
  33. 33. HE EXITS TRADES AS SOON AS THEODDS OF SUCCESS ARE NO LONGERPERFECT. www.TheForexNittyGritty.com
  34. 34. HE GOES HOME WHEN THE MARKETDOES NOT MAKE SENSE. www.TheForexNittyGritty.com
  35. 35. THAT IS CONSERVATIVE ANDCOMMONLY PROFITABLE CURRENCYTRADING. www.TheForexNittyGritty.com
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