Hey everyone, today’s presentation is no different to what I have been putting out this whole week. It’s all about the Euro Pound cross as our guiding light for today’s trading. I once again use this cross to build a trade plan for the Pound USD and the Pound Yen. I am posting this video a little earlier than usual; as a result I make use of longer term timeframes to get a general idea for market direction. Good luck!! David Pegler

Hey everyone. With lots of economic data out of the way the prevailing dollar weakness and Euro Pound strength has continued. For today’s presentation I build on yesterday’s Pound related analysis and explore the Euro Pound cross for clues in trading GBP/USD. Cable calls for a skilled hand today given where we technically so strictly support and resistance entries today. Good luck!! David Pegler

Hey everyone, as another trading week draws to a close I take a look at an old favorite the Kiwi USD and Cable. Kiwi has been in a slow methodical uptrend for several months and I look to capture a few intraday pips with the prevailing trend. Cable on the other hand is a little more complicated but with the help of some key Euro Pound technical’s I have put together a conservative cable related trade plan. Good luck!! David Pegler

Hey Everyone. Some very nice USD related moves I hope you were able to capitalize and grab a few pips along the way. For today’s outlook I continue the Euro related analysis we started yesterday. I take a look at the Euro USD and Euro Yen. Nothing particularly complicated, simple trend following type trade plans. Good luck and I hope you enjoy the video. David Pegler

Hey everyone, good to be back after a long weekend. Labor Day typically signals the end of summer and more importantly “summerish” trading conditions. For this outlook video I take a look at the Euro and Pound USD. Euro has been showing some good relative strength lately and conversely Pound some relative weakness. I have put together some very conservative trade plans to exploit their respective relative strengths. Good luck!! David Pegler

I came across this great guy, an equities trader, on twitter. As we started tweeting to each other more, I learned that he was starting out in the forex market and felt very apprehensive about trading currencies. He’s quite a risk averse type of guy who likes to take his time over the analysis of equities, but has the impression that Forex is different. Well is Forex risk different I wondered? As a Forex only girl, I’m not sure I can answer that, but I can show you what system I use to control my aversion to risk.

10 Forex Rules of Risk Management for Equities Traders

1. Be Logical not Emotional

• Decide your rules to enter and exit trades
• Decide your rules to exit losing trades
• Write your rules down
• Always adhere to your rules
• Before you place a trade:
• Know your profit target
• Know your loss limit
• Understand your strengths and weaknesses
• Build on your strengths, control your weaknesses

2. Trade, don’t Gamble

• Don’t sell after a period of selling
• Don’t buy after a period of buying
• Don’t take overnight trades (you can’t control what happens)
• Don’t trade at major news announcement times. Volatility at major news times can blow your trading account
• Don’t ever trade without a Stop Loss

3. Use a small ‘lot’ size until you’re comfortable with your results

• Build a buffer bank
• Stage lot size up slowly
• Stage lot size down when your strategy doesn’t respond

4. Don’t Add to Losers

• You can wipe out your account waiting for the market to come back to you

5. When in doubt Get Out!

• Immediately
• A flat is a good trade, nothing was lost

6. Have a Daily Loss Limit

• Ultra conservative – 0.5% to 1% of risk capital
• Conservative – 1% – 2% of risk capital
• Experienced Conservative – 3%

7. Don’t increase your lot size to recoup losses

• The table below shows why you should not increase your lot size (and therefore your risk) to recoup losses.
• A recommended amount to risk at one time (not per trade but at any one time) is no more than 3% of the account balance.

So in percentage terms, you can see that the higher the percentage of your trading capital you risk, the higher the percentage return you need to get back to where you started!

8. Don’t Overtrade

• Set a daily goal
• Stop trading when you reach your goal
• Keep your lot size the same throughout a trading day

9. Be Disciplined

• Do your homework (your research)
• Plan your trade
• Trade the plan
• Focus on the trade, don’t get distracted
• Keep a trade journal
• Analyse your journal to identify learning points

10. Be Careful of your Computer System

• 
• Don’t trade if you notice problems with your system or data flow is slow
• Have a check list and if something is wrong don’t trade

I really hope this helped my equities trader pal. The same rules of risk aversion and money management apply to Forex as they do to trading equities, commodities and even chicken feet! The most important rule to learn is: decide your tolerance to risk, decide your risk aversion rules and….. Don’t bend your rules. Your trading account will thank you for it.

I send my thanks to my Twitter trading pal; it was a great idea for a blog. If you like to trade equities see http://350trader.com/