As a Forex trader, most of us have heard the motto “cut your losses short and let your profits run.” It sounds simple enough, right? Well, to be honest, it really isn’t if you’re not familiar with the very useful tool for all traders known as the trailing stop. The trailing stop is just like a typical stop and loss order with the difference being you can move it along with the market’s volatility.
When it comes to trading, technical indicators are some peoples pride and joy. They are what allow certain traders to make the bulk of their profits. Indicators are also what allow some traders to start out on their path to trading while they learn to analyze it themselves without indicators. Apiary Fund reviews many different indicators and their uses. Each one has its own shortcomings and its own benefits. Here are some of the most commonly used indicators along with some of their uses in the market.
Money management is a core ideology in the trading world. This money management comes in both the form of managing your profits correctly, and correctly managing your losses. Managing your losses can come in many forms from cutting them short to stopping trading from the day. Managing your wins can come in similar forms, such as proper take profit placement and stopping trading after certain criteria have been met. Regardless of your management method for both wins and losses, having a system in place is required for your trading to progress to the level that allows for you to live off of your trading and even to have it just as a secondary income-generating stream.
One of the top things people say about FOREX is that you can’t make money and profits can only be made by the big banks. This is one of the points that was discussed in the Common Myths of the Currency Market article. Trading can be for everyone and is a great way to make residual income when starting out and to have a primary income once you’ve developed your strategy and can spend the required time to make what you need. Success isn’t all about immediate large returns. Here’s a bit more information on if you can make money in the currency markets as an individual trader.