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Don't Walk Away

I often hear technical traders say, “Put a trade in and walk away.” I think this is the equivalent of trading suicide. In the currency markets, wild fluctuations are normal. Spikes occur daily, caused by a fundamental event or large trades hitting the market. Whenever you put a trade in the marketplace, I advise that you actively monitor it.

Remember, you can lose more than your initial investments in the Forex market. Because a currency cannot go down to zero, you have an incentive to watch all your trades. An extreme example is from 1997, when a few Asian governments devalued their currency with no official advance notice. If you were on the wrong side of that trade, you were responsible for all the losses. Some Forex firms advertise guaranteed spots, giving the retail investor a false sense of security. This claim should be researched thoroughly.


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