Have you ever heard that a change is as good as a rest? Have you noticed that you can get more done after having an extra day off, i.e. a vacation or holiday?



There was a study done with some men that were unloading heavy objects from railroad cars. The first group would unload one item then go right back and start on another item. In an 8 hour shift each man could unload 12 items. The other group would unload an item then sit down and take a 15-minute break before starting on the… Continue

a. Add only to winning positions.

b. Never add to a losing position. One of the most important money management rules that a trader should never break is ‘Never add to a losing trade’.Trades are split into winners and losers, and if a trade is a loser, the chances of it turning right around and becoming a winner are too small to risk more money on. If a trade is a winner but looks like a loser, wait until it shows you what it really is before you add to it.

c. If you do this you will… Continue

When did the training wheels come off the bike? When does the parent let the new driver go solo? When can the new pilot fly solo? When does a trader start to use real money? The answer to these questions will be different for everyone.



One of the first things in each of these examples would be the level of confidence the participants have in themselves. With the bike rider, it might be when he/she does not touch the training wheels any more. With the student driver and pilot, it… Continue

Effective traders are always working to improve their knowledge and abilities. Although you will not use all you know on each trade, increased knowledge will build your trading skills and ability to trade your own beliefs about the market. You will know you are using the material you have learned when you:



* Seek to rellow a trading plan when preparing to trade.

* Strive to consistently study, visualize, internalize, and apply the knowledge you will gain about the market.

*… Continue

To buy and hold a mutual fund, stocks, or bonds is a common practice. To buy and hold a currency is not as common even though it can be done. When a trader or investor buys and hold, they are usually looking for more than one type of income. Not only the appreciation of the investment instrument but dividends, swap, or interest are also motives for investing.



In the currency market swap may be paid on a daily basis. Swap is interest the banks pays or charges depending on whether you… Continue