Articles: Practical Forex Tips and Ideas by FX Helpline Staff
From time to time, we'll add new articles with practical tips and ideas from our staff of professional Forex traders.Keep Your Friends Close, Keep Your Forex Broker Closer
By Evan Frankson
I could go on letting you believe that your retail foreign exchange (Forex) broker is on your side.
While I'm at it, I might as well let you believe that every infomercial salesman is out for your best interests too. The truth is your friends are not always who they say they are and not everyone you trust is going to be there to look out for you, least of all the typical broker in today's retail currency trading industry. If you trade Forex, you're in the largest hunting grounds of the financial markets -- and in this worldwide dog-eat-dog multi-trillion dollar jungle, you trade reality so get used to facing it. On the other hand, sometimes what others believe are the worst things in the world can be used to your advantage.
Avoiding death by a thousand small stop-losses:
A different approach to risk/reward for traders
By Evan Frankson
Advising beginners to "cut your losses and let your winners run" has become a cliche in trading books and web sites, often regurgitated but rarely applied effectively. The phrase often refers to the idea of trading with smaller, tighter, stop-losses and proportionately larger profit targets. It enforces a per trade risk/reward ratio in which every winning trade outsizes the inevitable losing trades for a net profit. The idea sounds great on paper but, when applied in a real market environment, tends to send most beginners into unnecessary losing streaks right off the bat.
