10 Simple Steps To Avoid Forex Trading Catastrophe. Read about Online Forex Trading Now!

1. 10 Simple Steps
To avoid Forex trading catastrophe

2. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
RUN YOUR PROFITS, NOT YOUR LOSSES!
It may a simple equation, however many traders have a tendency to make the age old mistake of
prematurely closing profitable positions while keeping losing trades in the game. At the inception of the
trade, set your contingencies according to your desired risk profile, while giving yourself a fighting chance
to come out on top should the market swing in your favour. Fear of losing brings out a natural urge in all
of us to wait in anticipation of a reversal, prompting a trader to adjust or remove stop loss contingencies,
while the excitement of a profitable trade may find a trader scrambling for the close button before your
desired target is achieved.
ALWAYS TRADE WITH POSITIVE EXPECTANCY
In the same vein as the aforementioned ‘run your profits, not your losses’ it’s of paramount importance
to always trade a positive expectancy based trading system. In short, if your profits are larger than your
losses on each trade, you may only need to win a small percentage of trades to achieve an overall profit.
USE LEVERAGE WISELY
Trading Forex and other financial derivatives can allow a trader to access a significant amount of leverage.
In essence, leverage gives you the ability to amplify your position size using only a fraction of the nominal
trade value as a deposit. While this may enhance flexibility by allowing a trader to increase position size,
it’s imperative to consider the implications should the market fail to move in your desired direction. In
short, understand the concept of leverage, be conscious of your total trade size and recognise how this
will affect your bottom line should your central view fail to materialise, while keeping your contingency
plans firmly in place.
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3. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
DON’T HEDGE YOURSELF OUT OF EXISTENCE!
Hedging for the purpose of mitigating risk is extremely important for many professional traders and
companies, however for the retail trader it can be a foolhardy exercise. In theory, the practice of hedging
your exposure may seem appealing, however many traders may open an equal and opposite hedge to avoid
the inevitable – taking a loss. It ultimately adds to your overall transaction cost and in many cases results
in multiple hedged positions with zero exposure to the market, which at some point needs to be unwound.
SIMPLE IS OFTEN THE BEST
Avoid the temptation of using a complex web of indicators in an effort to create a ‘grand’ trading strategy.
While it may seem logical to find a treasure trove of indicators pointing to the same conclusion, it’s
rarely the case; instead it often results in exasperation and confusion for new traders before the first live
trade is executed. Professional’s will take the initiative to explore new and potentially profitable trading
systems, while exercising caution and restraint before putting their hard earned cash on the line.
TRADING ROBOTS – IF IT SEEMS TOO GOOD TO BE TRUE IT PROBABLY IS...
Exercise caution when using automated trading robots or high frequency trading systems. Trading with robots
can be an effective and efficient emotion-free way of trading, however it is important you understand what
you’re buying and do your due diligence before putting your hard earned cash on the line.
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4. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
UNDERSTAND THE VALUE OF BOTH TECHNICAL AND FUNDAMENTAL
INDICATORS
While a trader may primarily identify with either a technical or fundamental approach to trading,
it’s important to understand the value of both methods. Watch for key technical milestones, while
understanding the potential implications a top-tier news event may have on price action.
TRADE WITHIN YOUR MEANS
Forex trading by its very nature is a speculative enterprise, and while a trader may be tempted to use
capital assigned for day-to-day living costs it goes without saying the importance of diligently ensuring you
only trade with funds specifically set aside. Forex trading can be stressful, why place further stress on
oneself by trading scared money.
A SMALL TRADE’S A GOOD TRADE
Unless you’re a seasoned professional, start small; understand your exposure to the market and maintain
conservative positing relative to your capital base. All Forex traders will be invariably tempted at some
point by the allure of ‘the big win.’ This of course encourages risk taking behaviour, given the need to
sharply increase positioning in effort to scalp the market for quick and unrealistic returns.
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5. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
EDUCATE YOURSELF
As with all worthwhile endeavours, trading takes commitment, hard work, and dedication. So educate
yourself! This of course doesn’t entail spending thousands of dollars in a ‘unlock the secrets of trading’
type education program. While some of these programs may provide invaluable education on the finer
points of FX trading or a particular trading strategy, there are a myriad of free, simple tools available
for those who would prefer to keep their starting capital in their pockets. Speak to a Vantage FX
representative to find out more about valuable resources available from independent websites that won’t
erode your capital base before you even start.
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6. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
WANT TO LEARN MORE ABOUT FOREX?
ACCESS THE FREE FOREX EDUCATIONAL TOOLS ON OUR WEBSITE
GET YOUR FOREX TRADING STARTED WITH AN
AWARD-WINNING PROVIDER TODAY.
VISIT WWW.VANTAGEFX.COM FOR A FREE 30-DAY
RISK FREE DEMO ACCOUNT.
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7. 10 SIMPLE STEPS
T O AV O I D F O R E X T R A D I N G C A T A S T R O P H E
ABOUT VANTAGE FX
Vantage FX is an award winning Australian financial services firm providing online Forex trading capabilities
to retail, high-net worth and institutional clients in Australia and the rest of the world.
Vantage FX is a Corporate Authorised Representative of Enfinium Pty Ltd (AFSL No. 322081), who acts as a
licensee and outsource provider to oversee our compliance with Australian Financial Services Law and the
requirements of holding segregated client funds at approved banks.
As a financial services provider, we are regulated by Australian Securities and Investments Commission
(ASIC) under Australian law. Vantage FX is continually striving to provide a client-friendly, totally
interactive Forex experience. As a team we always look to innovate and take advantage of the latest
technology, the benefits of which we pass on to our clients. What set us apart from our competitors are
our wide range of services and a superior level of customer support
VISIT OUR WEBSITE AT WWW.VANTAGEFX.COM TO FIND OUT MORE
Vantage FX is the online Forex trading arm of Enfinium Pty Ltd which is authorised and regulated by the AFSL 322081. Risk Warning:
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading
Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent
advice if necessary. The information in this guide is not directed at residents in any country or jurisdiction where such distribution or
use would be contrary to local law or regulation. A Product Disclosure Statement for this product is available from Vantage FX Pty Ltd
and should be considered before deciding to enter into any derivatives transactions also a financial services guide is available by going to
https://www.vantagefx.com and clicking on the link at the bottom of the page. The FSG and PDS need to be read and understood before
deciding to enter into any Derivative transactions with Vantage FX. Vantage FX Pty Ltd offers general advice only and no consideration
will be given to individual investment objectives, financial situation and needs. Vantage FX is a Corporate Authorized Representative of
Enfinium Pty Ltd AFSL 322081.
Please be advised, the services and products offered by Enfinium Pty Ltd are not being offered within the United States and are not
offered to US residents or citizens. Enfinium Pty Ltd is not registered with any US regulator including the National Futures Association
("NFA") and Commodity Futures Trading Commission ("CFTC").
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