Forex Crunch has released a new and free eBook titled: Trade Forex Responsibly – a guide which aims to help forex traders to trade in a more responsible manner. Forex Crunch is an excellent blog for forex traders and I highly recommend readers to check the site and the new eBook. Herein a short description of the new free eBook:
Guest Post by Yohay Elam:
Many arrive to forex trading and just burn out their account because they don’t trade responsibly. This guide touches the key points of trading forex more responsibly and provides many practical tips that not only help avoiding the pitfalls but also provide tools for balanced, successful and sustainable trading.
The 9 chapters of this eBook are also published as weekly articles. The first chapter, discussing money management, is available here. A rule of thumb is provided here: Don’t risk more than 2% of your account in any trade. This may sound strict, but ignoring this basic rule may lead to burning your account too fast.
How do you choose a forex broker? Are you attracted by its tight spreads, sky high leverage or shiny bonuses? These figures are highlighted by the brokers, but shouldn’t be high on your agenda.
The broker should be able to execute your orders in the best way possible, otherwise the tightest spreads will not help, and the high leverage will just amplify the losses. Other key topics concerning opening an account are regulation and the size of the account. A bigger account size can make a difference between a winning and a losing account. All topics are extensively covered, including tools for checking these issues out.
How do you trade? Do you try to outsmart the market and miss the forest for the trees? The guide discusses the importance of trading with the trend, using higher time frames and selecting the right currency pairs that match your character.
Every trader has his own character which cannot be easily altered, yet making the tweaks to trade in a more responsible manner is certainly possible.
To download the full eBook for free, please go to forexcrunch.com and sign up for the newsletter to receive the report.