Thursday, November 27, 2008


It is needless to say the importance of managing risk to make money consistently in currency trading.With out risk orientation it is impossible to make money from currency markets.All successful and seasoned traders are good risk managers.Learning to manage risk leads to two important age old and most of the time ignored rules of trading one is to cut your loosess and second is to run your profits.You put two successful and seasoned traders on the opposite sides one on bearish side and the other on the bullish side.You will see both of them make money. You put in the same way novice traders on opposite sides. Invariably both of them loose money.The reason is that good traders are very good risk managers.The third important rule is to trade selectively. To trade selectively low risk trades you should become an expert in your chosen approach.Becoming an an expert in any performance field takes time.A currency trader has to undergo experiences of executing and experiencing innumerable number of trades before he gets uplifted to the level of an expert.You should practice your chosen single approach in varied market conditions to build implicitly the expertise into you.Once you have mastered the above three rules you will not have any difficulty in making money consistently from currency markets.Muraleedharan

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