Many find the explanation of the three price categories driven trading techniques in the second half of "Avi Frister The Forex Trading Machine" described the most exciting part of his book.

Provides, however, Chapter 6, major clue that if they can be ignored, even by breaking a seemingly successful businessman. The chapter is titled: Money Management - the key to business success and the first main line is: "The Monster of Trading - The drawdown.

This observation appliesthe nail on the head: "Dealing with these great loss to a certain extent, that has a system or method of selling is probably the most difficult part of being a trader." Amen

A typical scenario

A company may have established a record of good bids for success, your account is growing steadily, and his confidence is growing with it. Then suddenly, the dealer gets a couple of losing trades in a row. With a little 'confidence shaken, he continues to receive many more only in a batchWon one by one. When he started his relationship with U.S. $ 20,000 and built up to $ 30,000, but now seeks a balance between $ 25,000, which has just feared a loss in this example, $ 5,000.

Many dealers are looking for in a self-destructive behavior patterns. They begin to think that their system is wrong! And begin to optimize it, experiment with it, maybe even decide in favor of another system. Such reactions to a loss feared is probably onlyEnsure the seller remaining fragment of the trust is to be swept away.

How to avoid such a scenario? This eBook offers wise advice. Just hold onto your seat and keep trading as you are when you perform the operations carried out successfully. Do not be tempted to believe that there is something to be used with the system or strategy you. The most successful strategies to generate income over time. Patience is required.

Money Management Recommendations

In addition to this rigidmental attitude, a management system of savings calculated must be available. Avi Frister adjust the characteristics that I think are very useful and provide a solid basis for a safe trade.

His recommendation is not more than 1.5% of their account at risk for each trade. 20K in a normal account, it means a stop-loss of up to 30 pips. This means that you can run a loss of 7-10 trades in a row and continue to receive the capital remains. Of course, with eachLoser would verify the cuts to the number of objects that are being negotiated.

Once your account is located predetermined levels once again, the number of games or positions may be increased. This offers a true fail-safe method that seeks to have an account wiped out by wild how desperate business practices a variety of new and existing methods, or the market requires a large number of parts in a very disproportionate trade avoids compared to its capital.

The Power OfCompounding

Compounding is the way to create capital. Little has grown steadily worse over time, can lead to surprising results. If the money management discipline is willing to follow the principles and spirit for as long as the retailer is the threatened loss coming at some point, will have to survive another day to see and enjoy probably going to extraordinary profits.

Detail the system of money management in Chapter 6 of this book is therefore essentialReading. Although similar concepts in other books that seem to cover themselves with the change, but the way Avi Frister explains simply click here and choose to go home.

Title: Forex Trading Machine

Author: Avi Frister

Format: Digital - PDF

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