Just this week I was talking with another Retail Trader about the Markets…   I for one had made a decision to stay out of the markets on Thursday & Friday, and in fact so had my Trader friend, so we used the time to catch up on some trading chat!

Well, it wasn’t long before our conversation turned to Trading Plans.  We were discussing how difficult it had been to develop discipline in our trading, and that even today, we had to make a conscious effort to maintain the levels of discipline required.  I spoke about a learning model I apply that I had used in many business and self improvement situations, and it got me thinking that I needed to share this with you. 

This learning model is known as the Four Stages Of Competence and is a psychological process of moving from incompetence to competence.  Now the word incompetence, does not suggest ‘useless’!  I know in my youth, there was that association, and maybe for some of you too!  However, the actual definition is:- lacking qualification or ability.  

(more…)

Hopefully you will have read about my own experience of ignoring my own Money Management rules.  It was a very hard lesson, and hopefully you will heed my advice and ensure that you religiously stick to your own Money Management rules….  It really can be the difference between growing your capital, and losing it altogether! 

In case you have yet to define your own Money Management rules, I thought I would post some things for you to think about here on the Blog.  I hope you are able to take something from these to improve your trading. 

You need 4 key things for your money management rules, these being:- 

(more…)

Money Management – what’s that?   If this is your response to the title of this article, then either STOP trading forex until you have learnt about it or, if you are new, do not start yet!  The chances are, if you trade without any Money Management rules, you will lose your capital investment faster than the time it takes to read this article! 

Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a ‘blown account’ in no time at all…. 

Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading.   Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there!   In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules……………  ‘Speed up the path to the intended destination’ will be the justification in their mind! 

(more…)