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Forex Trader Training -
Getting That Trading Edge by Harold Hsu
If you've done your homework on retail Forex
trading, you'll come to realize that the market
is geared to make you lose money.
The big financial institutions around the world
have all the necessary human talent, technology
and resources to 'hunt' for your money, and
let's not forget the smaller pip spreads that
they enjoy. Add to this the fact that many
brokers have been known to trade against their
clients (i.e. taking opposing trade positions),
and you'll have every reason to fear for the
loss your money.
Play to your strengths
That's why it's important that you have an edge
in the way you trade to balance the field.
You'll need to take advantage of your position
as a retail trader, to avoid falling prey to the
big institutional traders. Play to your
strengths as a retail trader!
Strength #1 - No Pressure To Perform
Unlike institutional traders who are constantly
under pressure to perform, retail traders (like
you and me) have the luxury of cherry-picking
the trades with the highest winning probability.
The idea here is to enter into fewer, but more
potentially profitable trades.
The more traders you enter, the more chance you
give the institutional traders to take your
money. Don't give them any such opportunities.
Strength #2 - Small And Agile
Unlike institutional traders who have to trade
with hundreds of thousands of dollars (or more),
retail traders typically trade with much smaller
amounts of money. This enables us to suffer from
less slippage and gives us the opportunity to
ride on most price trends, since our trades
generally won't influence prices.
This means that retail traders are able to
quickly enter and exit the market for small (but
quick) profits. This is an area where few
institutional traders can go. Because of the
sheer size of the funds they trade,
institutional traders rarely have the
opportunity to move in and out of their
positions quickly. Use this to your advantage.
About the Author
To learn more, download my free 26-page guide
here: "Forex Trading Traps!"
Harold Hsu is the owner of
www.ForexSystemProfits.com where he provides
premium Forex trading tips and resources.
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