Thursday, January 22, 2009

Trade mangement Currency Trading.

Trading and money management professions are expensive to learn an not everyone who attempts to learn succeeds.Those who do succeed may profit handsomely.In this respect the trading profession is no different from the medical, engineering,technical,artistic,sporting and political professions.
Trade management ( Two approaches).
1) Scaling out approach.
Putting on the entire position upon the initial entry and then liquidating positions, of that positions (a) to cover costs (b) take a small profit (c) and finally to ride the trade as far as it will go with what remains of the position after partial liquidation.
2) Pyramiding approach.
Build the position by entering a position of it to test the waters.If the initial position becomes profitable, you then add to the position in stages until you have put on the entire position.
Much of any acceptability of the approaches depends upon your personal comfort level in handling risk and your financial capacity for handling risk Muraleedharan and

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