Volatility crucial for forex day traders
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murvyn
Apprentice
Joined: 29 Mar 2008
Posts: 3
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 Posted: 07/26/08 - 09:55 Post subject: |
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| I have recently been looking to start with investments. I have heard that I should try with Forex day trade and that volatility is crucial for it. If anyone could tell me if that is the case, that would be great. Thanks in advance. It really means a lot to me. |
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mord
Apprentice
Joined: 28 Sep 2006
Posts: 4
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| Posted: 08/24/08 - 23:23 Post subject: |
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| Any investment carries with it a risk in part. That is why you need to make sure everything goes as you plan, and that you make a good plan. When it comes to ensuring the value of your portfolio, you have to be aware what kind of portfolio you want to create. You should be especially careful with volatility indeed. It is the feature of stocks which makes them unpredictably go out of control up or down. For day trading, where everything happens within one day, that is indeed absolutely crucial. You should be very careful and make good calculations. Hope you find the info helpful. Best of luck. |
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coolforexmind
Apprentice
Joined: 10 Jul 2008
Posts: 5
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| Posted: 10/23/08 - 07:34 Post subject: |
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To be a good trader or an investor, you need to have a program or rules in place before you even start, whether you are an investor or a trader, the major rule that you must be aware of is that you never enter a trade without knowing when and where you are going to get out.
1 - A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Have a good understanding of the function of the market in general and those that keep the market operational. Understand, not only the market you are trading in, put be aware of all the products and services that you can upon if needed. Understand the basics of trading such as never trade against the trend, limit any & all loses by using stop orders and lock in any and all gains with sliding stops,
2 - Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest. Be sure that you have sufficient monies on deposit to be able to take advantage of any & all opportunities the market provides us. To be in compliance with rules of the Federal Reserve cover security purchases.
3 - A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. You never invest more than 10% of your capital into any one position. You limit your loses to no more than 10% in any position.
4 – A full and complete understanding of the rules & regulations of the industry. |
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