The Name of the Forex Game is to Stay in the Game

Yet another trading week has passed and new a brand one awaits us!

Tonight there is again a weekly Forex recap presented by myself (go here). Check it out live at 4pm GMT time (5pm London, 6pm Frankfurt). See you there!

Last week’s recap offered 5 setups. Three (3) trades closed for a win and two (2) for a loss, which was not a bad score but a bit weaker than in past performances. Sometimes mediocre trading weeks do occur (and even bad ones). That is part of the life of a trader and we need to accept it and move on.

Still, the week was pretty good and did offer 1 important learning lesson: diversifying the risk is important for balancing the trading account.

Simply said, by trading multiple pairs we can lower the overall risk and offset losses.

A trader who takes 1 or 2 trades with big sized risk is highly dependent on the outcome of a small sample. If one trade goes wrong then the trading day or even trading week is spoiled.

A trader who spreads the risk over multiple trades is able to ‘climb back’ from a loss. They can also handle losses easier from a psychological point of view.

Remember the name of the game is to stay in the game. If a trader over-risks then need to either stop trading and miss out on other opportunities during the day or week OR, even worse, decide to over-risk even more and ultimately risk the entire trading capital.

Keep your options open throughout the trading day and week and you will be more balanced as a Forex trader.

Many green pips, Tarantula FX