stockdalelearningcenter

Posts Tagged ‘Fail’

The former battlefields of the Middle Ages did not go as they have simply changed. Hundreds of years are not given in normal men build their empire by conquest of land by force of arms. Today, normal men like you and I start to build our financial empires by conquering markets think that the strength of the car. The blood soaked battlefields of yesterday have given way to cash soaked battlefields of business today, with large private armies of warlords family make way for large pools of capital from the family. As the armies were necessary to shape the empires of the past is also the capital needed today to make plans modern commercial conquest action.

In there lies the reason why many traders fail. They go into battle to risk too many soldiers (capital) and without the knowledge of the tactics needed to win the fight.

Look again. 1. They risk too much capital, 2. They do not understand the Forex markets.

Many traders successes and miserable have made these mistakes, the main reason for me writing this article is that you can learn this lesson here and not make this mistake and lose money, or at least be enough prudent to minimize your losses.

No general risk to the majority of his men in a battle he has no plan for and where he has no idea of his enemy. So my question is, why would you risk your capital in market conditions as you do not know? Fortunately, two remedies exist for the general forex is in this situation.

1. Make it a rule for a risk of 1% of your capital in any business. This is to minimize your losses.

2. Learn so you can recognize your chance to strike, but also recognize when it is necessary to withdraw. Learn to read the conditions of the battlefield Forex. great generals of the past would spend years learning combat tactics, fortunately, we can achieve this in a few months.

So in summary, that a risk of 1% of your capital in a business, and learn how Forex markets work.

The old battlefields of the middle ages are not gone, they have merely changed form. Hundreds of years ago normal men would set out to build their empires by conquering lands through the force of arms. Today, normal men like you and i set out to build our financial empires by conquering markets throught the force of self. The blood soaked battlefields of yesterday have made way for the cash soaked commercial battlefields of today, with the large private armies of Family warlords making way for large pools of  family capital. Just as armies were needed to shape empires of the past, so too is capital needed today in order to put modern commercial plans of conquest into action.

In there, lies the reason as to why many forex traders fail. They go into battle risking too many soldiers (capital) and without the knowledge of tactics needed to win the fight.

Lets look at that again. 1. They risk too much capital, 2. They do not understand Forex markets.

Many traders both successful and miserable have made these mistakes, the main reason for me writing this article is so you can learn this lesson here and do not have to make this mistake and lose money, or at the very least be cautious enough to minimise your losses.

No general will risk a majority of his men in a battle that he has no plan for and where he has no idea about his enemy. So my question to you is, why would you risk your capital in market conditions you know nothing about? Luckily two remedies exist for the forex general who finds himself in this situation.

1. Make it a rule to only risk 1% of your capital in any one trade. This is to minimise your losses.

2. Educate yourself so you can recognise your chance to strike but also recognise when it is neccessary to withdraw. Learn to read the conditions of the forex battlefield. Great generals of the past would spend years learning battlefield tactics, luckily we can achieve this in a couple of months.

So in summary only risk 1% of your capital in any trade, and educate yourself about how forex markets work.