Posts Tagged ‘Risk Management’
Always have a stop, and ideally a limit
When trading financial derivatives such as forex, CFDs should you always use a stop? Short answer: Yes! Long answer: Yes you should always have a stop in place – even if you think you really don’t need one. Note that I’m only referring to financial derivatives such as forex and CFDs where you trade on margin. If you are trading or [...]
Bucket shop broker allegations
A regular source of messages on trading related forums such as Trade2Win and babypips is people complaining of being ‘scammed’ by their broker / spread betting company. I’m going to list some of the common types of complaints. Stop chasing One of the most common complaints is that trading companies engage in ‘stop chasing’. This [...]
How much money could I lose trading CFDs?
Before placing any contracts for difference (CFD) trades you should ask yourself the question of "How much money could I lose?". If you are to trade responsibly you should always be focusing on what you could lose, not what you could win. If you are focusing on how much you could win then you are either at high risk of losing a lot of money, or [...]
Avoid getting screwed by your CFD / Forex trading broker
If you read trading forums such as trade2win and babybips then every so often you’ll come across someone who is asking for advice as it appears that they have been well and truly ripped off by their broker. I’m sure most brokers are honest but here are a few things you can to avoid the risk of bad things happening to you. When you start [...]
