Dear Investors & Traders,
The old adage says, “you are what you eat,” and today we’re offering you a heaping portion of brain food.
At long last, the mainstream media is beginning to question buy-and-hold investing – it’s a myth that EWI’s original Independent Investor eBook debunked years ago. Even the “Efficient Market Hypothesis” has come under fire from the Oracle of Omaha himself – the Independent Investor long ago exposed EMH for the fantasy it is.
Most would-be forex traders quickly fail.
Here are five forex trading commandments that you should use. These are proven to help forex traders survive and thrive in the market.
1. Trade an effective system
Firstly, an effective trading system is a must when it comes to successful forex trading. A good trading system provides the trader with signals showing when to enter and exit positions. It should have a positive expectancy, which means that on average, it should make money. Remember to test your system against live and historical data before trading with it.
Having an efficient trading system gives the trader a fair chance to win in most of his trades and minimizes losses.
(c) Monica Hendrix
Standard deviation is a concept all Forex traders should understand as part of their Forex education. In fact if you don’t understand it and know how to factor it into your trading strategy you are unlikely to win long term. Let’s look at it.
Standard deviation is logical, easy to understand and will help you time entries better and define targets for trades, as well as spotting important trend reversals.
It’s a simple and powerful concept and all forex traders should know how it works and how to take advantage of it.
The real problem that traders have to overcome when trading forex is overcoming volatile price moves that can stop them out to soon or with losses – if you learn how to deal with standard deviation, you will enter with better risk reward and get stopped out less often.
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