Posts Tagged ‘risk’
Can trading forex make me rich?
Many people are attracted to the idea of trading in forex (or other financial instruments such as CFDs, shares, or spread betting) because they think it is an easy way to make money. In theory it is very easy. All you have to do is to predict whether a price is going to go up or down. If you are right then you get make money. The degree to [...]
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 [...]
