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You are into forex because you want to make money in trading. I congratulate you on this great decision because big
money can be made indeed in Forex Trading. It's probably the easiest home income to get going and apart from what
anyone else might be telling you, I tell you to go ahead for this one.
In this short report I will assume that you already have some basic knowledge of forex trading, trading platform and
how to use it to open and close trades. these links I provided here can give the necessary knowledge in a short time in
case you do not already have it and I will go straight to the point here on showing you how to always win in Forex.
We are talking big deal here. Anyone can argue if it was possible to always win in forex trading then the whole world of
forex trading would collapse onto itself, because the only way you can win in forex is if some one else is losing to you.
Every time you win a trade that means someone else is losing exactly the same amount. If that someone happens to be
your broker who is trading against you when you win, that literally means that your broker who loses. How much loss can
your broker afford to lose against a client depends on how many clients are constantly losing to this broker. So right
from the start you need to be with a good broker who is not into the habit of trading against clients. To get my
recommendation on this one you have to email me from within my website contact page.
So not anyone can always win in forex trading because not everyone knows what I'm about to tell you in this report.
Lets get down to it.
The forex market is the king of righteousness. It is always right in its up and down moves. you can never blame the
market for anything that happens after you place your trade. If you made profit it is because you made the right decision
when you took the trade and again when you closed the trade. If you lost money it is because of your decision either
when you took the trade or when you closed it. Remember, for as long as the trade is open it is not considered a
permanent loss or a profit until the trade is closed. Once the trade is closed, there will be either an addition of profits to
your account, or loss subtraction.
As I write this, I'm watching a live losing trade that is shown below in the first shot of the screen here and I am all
confident that this trade will win in the end. See in the chart below that the GBPUSD with fixed spread reached as high
as 1.6420 and that is exactly where 90% of all traders would place their stops at, keep in mind that this is a Sell trade
and I do not use stop loss in my trading. ever.
If the trade below was a Buy trade I would be satisfied with 28 pips of profit and I would have closed the trade already
profitable. I made a wrong decision when I opened the trade but I did not close the trade yet and this is my chance to
mend my initial wrong doing. I will have all the patience in the world to wait and keep this trade open until it is
profitable. We will see by the end of this report what will happen with this trade.
So how come I advice everybody against the use of stop loss in Forex trading?
Simple. Using stop loss in forex is like playing in a casino. The only stop loss that is applied to my trades is the final
loss of the entire account, but that does not mean that I'm a gambler at all because when I trade stopless I use a
maximum leverage of 10:1 meaning that my open trade(s) should be equal or less than my equity in the account
multiplied by 10. This means that I will only be forced to liquidate a losing position when the market moves 1000 pips
against me, which is very, very unlikely.
If I ever have a trade that goes 100 or 200 pips against me, I do not take a chance and complement it with another
trade in that losing direction, rather I open a trade in the opposite direction and keep the hedge open until I get a clue
of the market trend. at that time I will have a winner among these 2 trades. The winner will be closed and the loser will
be left until it becomes a winner too.
Should the trade continue to amount losses, additional trades will be winning and compensating for the open loss. In
the end the amounts won will be much greater than the open loss. Finally when the market makes a favorable move and
the losing trade become in profit the account will become very fat indeed.
On the last graph below you see that the trade was eventually closed with substantial profit just like almost every trade
since I started with this great strategy back in May. This has really changed my life. I no longer have to keep my eyes
10/10 on the charts. I only need to pay attention to the market for no longer than an hour twice a day. I do have lots of
other work on my computer so I can't say I'm totally free.
When I say that you can always win in Forex I do not mean that you will never lose !
Losing and having to close losing trades is inevitable in Forex, however anyone with the better forex strategy or trading
style can always win by having a lot more winning trades than losing trades. It is as simple as that.
I will give you examples of Forex trades that needs to be closed when they are losers:
Let's suppose that you made the awful mistake and you sold GBP at 1.50 few months ago, We all have seen how it
ranged between 1.40 and 1.50 a little while ago. Many sold it at 1.50 and made incredible profit, but you sold it at 1.50
just as the currency was saying Good-bye to that range. Now the GBP is ranging between 1.60 and 1.70 and economy
outlook is well for further upward move. Your trade needs to be closed at the least possible loss or during those times
when GBP bottom range was as close to your price as possible. Think about it: If some one sold EUR at 1.23 few month
ago how much would his loss be today for $100k trade when EUR is at 1.43?, His loss would be $20K today, If someone
is holding to this kind of loss he must be sure that currency is reversing or he needs to close those out of range trade
when currency is at bottom of currant range. These trades happen sometimes and there no way to avoid it, not even by
most professionals. Using reasonable leverage gives your account great elasticity to withstand.
In this first lesson I gave you you a glimpse of why a stop loss should be out of your thinking. NEVER USE A STOP LOSS,
and I tell this while everyone else tells you to USE it.
By not using a stop loss in your trades you do not have to worry about stop loss hunting by brokers. If you become a
very good forex trader at a very bad brokerage firm that firm will sure invent special ways to put you out of business.
That is why it is good to be with the right broker even if you do not use stop loss.
You can can easily test in demo account and find who is right and who is wrong, say in a month's time.
My Next lesson will discuss whether it is better to practice forex in a demo account, in a tiny live account or in both:
How to Protect Yourself from Financial Disaster in Forex Trading
Above: This is a sell trade, if I had a stop loss assigned, this trade would be closed a s loser of 20 pips
Above graph shows the trade was closed 20 pips in profit. the difference between losing 20 pips and profiting 20 pips is: 40
About the Author:
Emmett Ebasi has lost a great fortune in the stock market and he admits that he is not a good stock trader. He made more than what he lost back in Forex and he
recommends Forex trading as an alternative to stock trading.
How to Always Win in Forex.
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