Tuesday, April 13, 2021
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    XTB Review

    Celox Review

    Onorio Review

    Lucrum Pro Review

    Plutus Global Review

    Galore Pro Review

    Profit Trade Review

    LegacyFX Review

    City Index Review

  • Broker Types
  • Forex Jobs
  • News
No Result
View All Result
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers

    XTB Review

    Celox Review

    Onorio Review

    Lucrum Pro Review

    Plutus Global Review

    Galore Pro Review

    Profit Trade Review

    LegacyFX Review

    City Index Review

  • Broker Types
  • Forex Jobs
  • News
No Result
View All Result
No Result
View All Result
Home News Forex Broker News fxcc blog

Defend yourself at all times when trading FX

There are certain team sports where defence is as important as attack, or “offence” as our American cousins prefer to call it. In football we’d be left highly entertained and breathless if Barcelona and Manchester City played out a 6-5 game with the emphasis on out and out attack. But the purists amongst us would also admire a game between Real Madrid and Juventus with the accent on defence which ended 1-0.

In boxing a referee often uses the
expression “protect yourself at all times” as he’s delivering his final
instructions to the two boxers, before they head back to their corner to have
their gum-shields inserted. Similar to how purists will admire a terrific
defensive performance in football, watching an elite level skilled boxer hit
but not get hit, as they concentrate on the defensive aspect of their sport,
can be a delight to watch.

It’s interesting to note that e-sport
competitors are now being regarded as athletes, these mainly young male
players, who play virtual games to huge audiences both online and in stadiums
are beginning to monitor their: diets, wellbeing, exercise routines and their
playing technique. Nothing is left to chance, they’re giving themselves the
best opportunity available to win the huge prizes which are now available. They
also develop playing strategies whereby they concentrate on protection as much
as attack.

Whilst forex trading should not be
regarded as a highly competitive sport like e-sports there are certain
similarities and in many ways FX trading is a competitive activity. You
undoubtedly need to have a can-do, positive mentality and a competitive streak
to succeed. You have to develop controlled aggression, the market doesn’t give
you have to take. You also have to learn how to defend yourself at all times to
ensure you’re protected from market blows.

Forex trading success won’t suddenly
arrive, it has to be worked on, you will require significant levels of stamina
to progress and bank sustained profit. You need to develop an attack minded
strategy while paying strict attention to defence, you also need to quickly
learn to protect the money in your trading account at all times.

An elite level boxer fully realises
they’ll take blows in their contests, but they constantly recalculate the risk
they’ll take when planning to land their own blows. Similarly, an experienced
FX trader knows that perhaps out of 10 trades only 6 will be winners, one of
the critical success factors is to ensure that the money banked through your
winners is greater than the money lost through your losers, this simplistic
rule ensures you’ll always be profitable. So how can you defend yourself at all
times when you’re actively trading the markets?

Consider always trading with the trend
rather than employ counter-trend trading methods

ADVERTISEMENT

It may read as simple methodology and
it is. If you’re a day-trader then it’s not too difficult to identify if a
daily trend is in play. The market for a security will either be ranging or
trending, in simple terms price will either be moving up, down or sideways. If
price is oscillating around the daily pivot point it’s probably moving
sideways, if price is trading above the first level of resistance, R1, then it’s
most likely continuing to trade in a current 
bullish trend, or developing a new trend. Taking trades in the direction
of the prevailing trend should always reduce your likelihood of incurring a
loss.

Protect your capital with stops, daily
loss limits and tight drawdowns

With every trade you take you must
have a plan to exit by way of a stop and a take profit target or limit order.
You must only risk a small amount of your account capital per trade. You must
set a reasonable daily loss limit before you admit that today your strategy is
not compliant with market behaviour. You must also set a drawdown level which
if breached will encourage you to go back to the drawing-board and revise your
current strategy, or to create a new method and strategy.

0/5 (0 Reviews)
Share198Tweet124ShareSend

Related Posts

fxcc blog

How fear in its various forms can impact on your trading

August 18, 2019
fxcc blog

How to employ a multi time-frame strategy when trading FX

August 18, 2019
fxcc blog

Accepting what you can control when trading FX is critical to your progress

August 18, 2019
fxcc blog

Are you prepared to fully commit to trading in order to experience success?

August 15, 2019
fxcc blog

Some essentials to place in your trading-plan

August 15, 2019
fxcc blog

Focus turns to the latest Q2 GDP growth figures for the USA for clues as to the direction the FOMC monetary policy will take.

November 8, 2020

Select one of the Best Forex Brokers for your Trading  |  Read the Reviews

XTB Review

Celox Review

Onorio Review

Lucrum Pro Review

Plutus Global Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. forexbroker.news is an affiliated partner with various Forex brokers and may be compensated for referred Forex traders.

Risk Disclosure: Forexbroker.news assumes no liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and forex signals. Operations in the international foreign exchange market contain high levels of risk. Forex trading may not be suitable for all investors. speculating only the money you can afford to lose. Forexbroker.news remind you that the data contained in this website is not necessarily real-time and may not be accurate. All stock prices, indexes, futures are indicative and not appropriate for trading. Thus, Forexbroker.news assumes no responsibility for any trading losses you might incur as a result of using this data.You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Disclaimer: It is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While ForexBroker.News has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by ForexBroker.News, nor shall it bias our reviews, analysis, and opinions.

  • Privacy Policy
  • Contact US
  • Terms of use,

Copyright © 2020 forexbroker.news

No Result
View All Result
  • Home
  • Forex Broker Reviews
  • Broker Types
  • Forex Jobs
  • News

© 2020 https://forexbroker.news - Forex Broker news & magazine