Assign probabilities to each event and you can estimate the distribution of future profit and loss. I define high probability trading as trades with a low risk/reward ratio that are backtested to have a positive expectancy with predetermined money ...

Which indicator has the highest probability to predict price

It is often said that amateurs open the market and the professionals close it. Don’t be one of the amateurs who prematurely put their money at risk.

LFX Trading Proverbs

In reality, overtrading can be many things, but one thing is certain: ignoring the potential we have to overtrade will almost surely put us in the position where we have overtraded – and by the time we wake up to this fact, our equity is gone.

Trading Tips from Joe Ross

Most of the time we are punished if we go against the trend. The only way to make a profit is if the trend is in the direction of your trade from start to finish- it’s as simple as that. Those that have a good trend following method can show good ...

Trading Tips from Joe Ross

Risk is the measurable likelihood of loss. Hence, it is Proper to use Money Management. That is the key element to lasting in forex trading, controlling your risk. You just have to resist the temptation trade to maximize gains and to instead trade ...

Money Management / Risk Management

To be a successful trader, you have to be able to admit mistakes. People who are very bright don’t make very many mistakes. In a sense, they generally are correct. In trading, however, the person who can easily admit to being wrong is the one who ...

Trading Tips from Joe Ross

To be successful in Forex trade, the key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can’t do is give (people) the confidence to stick to those rules even when things ...

Trading Tips from Joe Ross

Never Risk More Than 1% of Your Trading Account in Any Single Trade. This is especially true for new traders. This is important for both the trader’s psychology in case the trade was stopped out, and for the preservation of capital.

Trading Tips from Joe Ross

When it comes to forex trading using chart analysis tools, such as technical indicators, it is absolutely vital not to solely stick to one indicator to make your trading decisions. Trading currency pairs using only one technical indicator will not ...

An effective strategy and account with stable profit!

Always set price targets before you jump in. If you’re buying a long position, decide in advance how much profit is acceptable as well as a stop-loss level if the trade turns against you. Then, stick by your decisions. This limits your potential ...

Trading Tips from Joe Ross

Keep it simple. Those who have made good money trading Forex online tend to agree that the best game plan is to keep your trading system simple, especially when you first enter the Forex market.

Trading Tips from Joe Ross

Talking about money and risk management, I keep cutting my position size down as I have losing trades. When I am trading poorly, I keep reducing my position size. That way, I will be trading my smallest position size when my trading is worst.

Money Management / Risk Management

Successful traders have a larger edge and better money management than unsuccessful traders. Traders’ failures can be explained almost exclusively by their poor money management practices.

Money management in trading - the stupid way and the right way

There are no guarantees in trading – no absolutes. All traders make mistakes, great traders, however, limit the damage. Anyone who tells you otherwise is selling something.

Trading Tips from Joe Ross

Jeff Yass said "The basic concept that applies to both poker and trading is that the primary object is not winning the most hands, but rather maximizing your gains.”

Forex Trading Philosophy

Every winner needs to master three essential components of trading; a sound individual psychology, a logical trading system, and good money management. These essentials are like three legs of a stool – remove one and the stool will fall, together ...

Forex Trading Philosophy

When it comes to Forex, trying to “get rich quick” is wrong & leads to poverty. Those who want to do right, that is, having the needed knowledge, will get a rich reward. But those who want to “get rich quick” will quickly fail“.

Trading Wisdom

Trading is like relationship – getting in is easy, but the hard part is getting out.” Peter Borish

Forex Trading Philosophy

Risk management cannot be overemphasized. Practical money management is integral to your success a forex trader - you won’t last long in the market without it. Every trade you take inherently has some element of risk. Managing these risks in a ...

Forex Trading Philosophy

You have no business trading without a trading plan. Any successful trader will tell you that if you don’t follow a plan systematically, you’re bound to be unsuccessful. As long as you’re following your trading rules then you’re doing the right ...

Trading Wisdom