Copyright c Forex Trading Alerts Often forex trading is compared to gambling. Some who follow the random market theory support this view. However some technical analysis experts would argue that technical analysis Forex techniques stack the odds in the favour of the trader. Sound money management and risk management are another ways of stacking the odds in the favour of the trader How much do the odds have to be in the favour of the trader for them to make money?
Let's take a closer look at this assumption. In Currency trading, when the price reaches strong resistance or support, the question is: These are important statistics. Knowing this statistic is another big advantage for traders. Most indicators or trading methods have these kinds of statistics. The risk management technique that experienced traders use is the risk compared to reward ratio.
Just like card counters who make money from BlackJack you need to develop the skill of stacking the odds in your favour when Forex trading. This means knowing technical analysis very well and knowing the characteristics of the forex market very well.
Clever money management is also used by BlackJack card counters. When the packs are rich of high value cards they would progressively increase the value of their bets. They would bet very low or not participate when the odds are not favourable.
This is one of the most neglected aspects of Forex trading and as a Forex trader you need to develop this skill. Now imagine that only 1 lot was used for higher risk trades and 2 lots were used higher probability trades.
The above is only an introduction of how some successful traders do not let losses worry them as they have the odds stacked in their favour. Many trading firms including ours take their traders through a course of Casino game gambling odds to show them how easy it is to make money on the forex when you stack the odds in your favour. Tips and Advice on Forex Trading Systems Can Lose. Getting Started in Forex Trading. Introduction To Forex Market. Margin In Forex Trading.
Easy Steps To Forex Profits. Easy Logical Method for Huge Gains! Even Christmas Sales Affect the Forex. Make money not losses. More on SD Editorials?
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