Would you like to know the secret of forex profits? It is the secret that enables professional traders to make more than rookie traders. The best thin

Would you like to know the secret of forex profits? It is the secret that enables professional traders to make more than rookie traders. The best thing about it is that it requires no long hours of study just steady application. It does not require you to be particularly educated just disciplined. Best of all it is a secret that will enable you to make more money and see more riches than any usual trading plan.

Do you know why professional traders make more than rookie traders? There is an answer and that answer is the key to the secret of trading success that so many professionals have but eludes all the rookies! We will cover the answer in the below sections briefly:

(1) Money Management

I would like to tell you that the only way to make money in Forex trading is to practice money management. While it may seem strange and contradictory it is a fact. No one may make pips and profits long term if money management is not practiced. The reason is simple, because if you lose your account before you manage to gain the proper skills of trading there is not much you can do is there? The world's best trader loses about 40% of the time, yet even if there are losses of 40% the professional trader can still make profits! The answer lies in the skillful way that money management is practiced. The components of money management include:

• Profit & Stop loss targets (Risk vs Returns)
• Amount to risk
• Leverage & margin
• Discipline
• Trading Psychology
• Time to trade

These above points will fit into your money management plan and your money management plan must fit seamlessly with your trading plan. A money management plan is only useful if you can make it work for you daily not just on occasion.

(2) Trading plan A trading plan is not as important as a good money management plan. Still it is essential because it provides the trader with an edge. An edge is what provides the trader with a temporary advantage over the market. As the market is unpredictable, there is a possibility that your edge will disappear at any point in time. Thus your edge is temporary. But during this time the market is behaving exactly the way you want it to behave. Sad to say, that does not mean you will be guaranteed a profit. The market might shift suddenly against you, but if you have planned well in your money management, this is of little consequence. You will move on and enter another trade that fits into your set up. This is part of the discipline which you will have to build in order to be a good trader.

In conclusion, the revealed forex secrets will help you to trade better and hopefully more profitably. You need to focus on first establishing a good money management scheme before even thinking of a trading plan. With a good money management plan in place you will see your profits sky rocket.

Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only!

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