Forex Trader If you make one trade and it starts to go against you, you are wrong. Then why buy or sell more to average a loss? When things are getting worse, day by day in every way, why do your best to make them get worse in every way? Stop the loss before it is eternally too late. Every trader should remember that the weakest point of all is overtrading, and the next, failing to place a stop loss order, and the third fatal mistake of all, averaging a loss. Eliminate these three mistakes and you will make a success. Cut short your losses, let your profits run, pyramid or increase your buying or sell ing when the market is moving in your favor, not when it is going against you. Remember that wild, active markets are brought about by feverish manipulation, and that they increase the imagination, exaggerate your hopes, and take away all sense of reason and proportion. Therefore, in extreme markets try to keep a cool head. Remember that all things come to an end, and that a train going 6o miles an hour will cause a greater smash-up if it leaves the track than one traveling 5 miles an hour. Therefore, in a wild runaway market, jump before she bumps, for you will never be able to get out once the crash comes. When everybody wants to sell, and no one wants to buy, profits run into losses fast. The great bull market of 1919 shows plainly what hap pens when everybody gets crazy bullish, and can see no top in sight. This bull market reached a point where everybody was bullish and buying, and no one on the outside dared to sell short. It was one of the fastest markets in history. And what happened? When the "bubble busted" in the early days of November and the decline started, some stocks were off 50 to 6o points in two weeks' time, and the profits made during the whole campaign that year were wiped out in ten days. The man who waited for a rally to get out on after the move started down never had a chance, because everybody was trying to get out, and the further prices declined, the more people there were forced to sell out, with the result that the market got weaker as it declined lower. make money online ~ forex trading training |