[Trade of the Fortnight] New Year Special - How to NOT Lose Money!

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Trade of the Fortnight!    Simple Trades that make money

New Year Special - How to NOT Lose Money! 31 Jan 2010 I figured the best way to start a New Year is to buck the trend of "how you can make XX%" and to bring up a simple, fundamental topic. You can make money by not losing money. It does not matter how new you are to trading, I am sure that if you had a magic wand to wipe out all your losses; you would be highly profitable. Heck, even if you only wiped out the half most damaging losses, you would be very happy. Most trading babies spend too much time figuring out how to make money, and leave their back door wide open to leak their profits. Today's example is the GBP/USD. I picked it because trading babies will get very angry with themselves for missing the trade or worse still be proud that they made money on the trade. One important trading lesson to learn is that not all market moves can be properly traded. The trading baby uses profit as a benchmark for their success, and that is why many form very bad trading habits, thus suffering later on. The GBP/USD on 28th January collapsed dramatically in the evening and some people made money while others lost money rapidly as they got stopped out. For those who lost money, they are desperate to find out the cause of it. For those who made money, arrogance abound. The reality, unfortunately, is very different. That trade should not have happened because the market was choppy, and as choppy markets are, it will move unexpectedly. Yes, on the surface, you could attribute the fall to the S&P Downgrade of the GBP. But how is that attribution useful for future trades, since it is an after the fact statement? Something to think about. In trading Forex, we always look for reasons NOT to trade, then when we find one that is perfect, we courageously go for it! If all these processes seem confusing for you, you can now learn it all step-by-step, module-by-module. We offer Singapore's only 8-week Forex Trading Course with a structured curriculum. No over-inflated promises, no wild claims; only what works and what doesn't to protect and profit you in the Forex Market. Find out more at any of our FREE 90 min "Forex Trading Essentials" Seminar at a location near you! Click here: www.ForexDrivingSchool.com/seminar/ Important Notes: * Hypothetical profits for illustration purposes only. It assumes an effective stoploss risk of $250 for consistency in examples throughout our newsletters. This is not a trade recommendation and should only be used for educational purposes. Forex trading is a leveraged instrument and involves risks. Please seek professional advice if in doubt of its suitability for you. Any form of investment involves risk and may not be suitable for everyone. Past performance should not be an indicator of future performance. © Chart printscreens copyright www.oanda.com. Text and materials copyright FXDS Learning Group Pte. Ltd. Further Legal Disclaimers: We are not financial professionals in the legal terms and the information shared are purely for entertainment or educational purposes. Even financial professionals who present time to time on our stage, do not speak in their professional capacities and do not offer any advice or recommendations directly to any individual. They are merely sharing their experience. We do not advise on any product or plan or system, as every individual has a different risk appetite. We do our best to ensure accuracy but we will not be held liable for any losses incurred either directly or indirectly. If in any doubt for the suitability of any exhibited system please consult your professional financial advisor. Forex Driving School - Trade of the Fortnight - January 2010

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