Saturday, October 31, 2009

Being Prepared

FOREX Planning will Keep You from Losing Money

With a little FOREX planning you are prepared for every situation you may face in your trading. This FOREX planning helps to ensure you’ll be consistent in your trading no matter what happens. To make sure you cover everything, your Forex planning should consider:

* Rules for entering, adding to, and getting out of your positions.

* An action plan in case your trading computer, internet connection, broker, power, telephone etc. break down, or fails to be of any real use.

* What you will do if you are unable to trade.

* What you will do if you lose a certain percentage of your account

* What you will do if all the markets are closed and you can’t get out of your current positions.

Unless you have answers for all these scenarios, you stand a good chance of losing money and should invest in some FOREX planning. With the answers, and discipline you’ll be able to tell if you trading system needs to be tweaked, or if it’s just the markets.