subject: Your First Aid Kit In Forex Trading [print this page] I received a parcel from my friend recentlyI received a parcel from my friend recently. It was intended to be my birthday present this coming July 2010. As i unpacked, I found a first aid kit in the parcel. I was astonished to find this item as my birthday present. Included is a manual. Well, my friend in China decided to give me a birthday present this year. This is my first Chinese First Aid Kit birthday present!
The next question was when and how am i supposed to use a first aid kit in my life? How useful or important is a first aid kit to me? I started to look for answers.
This was described in wikipedia
"A first aid kit is a collection of supplies and equipment for use in giving first aid. First aid kits may be made up of different contents depending on who has assembled the kit and for what purpose."
Purpose of first aid kit is to provide first-hand protection to a person's life at the time where he sustained an injury. I began to relate similar events in risk management of forex trading to delivering first aid to an injured.
Forex Trader's First Aid kit
Just like an injured person will definitely find a first aid kit handy, a forex trader will also sustain emotional distress during or prior to making trades. Forex traders will also need their version of first aid kit delivered to them when they needed most.
The stages which they needed most:
Prior to making a trade
During equity drawdown
Having an opened trade with floating loss
Having an opened trade with floating profits
Providing a clear and simple exit strategies for forex traders prior to making a trade is a great start in trading the market. Statistics showed that traders will most often made losses trading without a plan. The reason may be deal to traders' emotion is very prone to market fluctuations and balancing between a clear mind and fear/greed is a very difficult process to manage.
Forex Trailer: Your Trading First Aid Kit
Forex Trailer Mt4 Software provides forex traders with 11 exit strategies and it works just like a first aid kit in our lives. It's purpose is to manage a trade such that the traders will collect the most profit in a time when he is right or limit and restrict the traders from losing much more than unexpected loss during the time he was wrong.
In forex trading, traders' equity is the trader's life. First aid kit delivers first hand paramedic attention to an injured at the time he needed most while forex trailer apply his knowledge and expertise in trade management protecting traders' equity accounts and maximising profits but not at the expense of higher risk.
Conclusion: First aid kit protect a person's life; Forex Trailer protects a trader's equity. That is Forex Trailer software protects a trader's life. It looks like a joke here but if you give a more serious thought to it, this may be very true.
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