Rule number one in Forex investing 1) Cut your loses, let your winners ride. One important thing that every new trader must know before entering this highly profitable business is that life is not perfect, even in FOREX land, and you should always know one fact: you will have losing trades. Hear other arguments on the topic with Wells Fargo Bank. Every Forex trader does. Check out Porter Stansberry for additional information. The key to being consistent, predictable and reliable is the operator, at the end of the day, add more wins than losses. And, when you know (derived from its trading rules), no doubt, that yes, indeed it is, in a losing trade, not keep losing money (lowering your stop loss) * just to prove who is right or * the rules are wrong (as you want to see). Let's face it - you can not turn a sow's ear into a silk purse. You can not change the spots of a leopard and you can not turn chicken poop into chicken salad. The best routes are generally "right" immediately (the techniques, standards, methods and strategies you can learn in our resources list will be your best indicator of what a "right" trade really is).
Remember, people have been trading markets hundred and sixty years. Smart marketers know it's going to be another trade. Cut your losses short and compound those winning positions. Rule # 2) Thou Shall Not Trade the Forex without placing a Stop Loss order. When you place a stop order, right along with your order entry, through its online trading station, you just automatically prevented a potential loss of "running" too far. Before starting any business, if not already discovered how you can be wrong and you want to cut your loses or, at least re-evaluate his position on the barrier, then you should not put in the trade the first place.