TIPS TO HELP AVOID A TRADING TRAGEDY

Transcription

1 TIPS TO HELP AVOID A TRADING TRAGEDY

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3 TO HELP AVOID A TIPS TRADING TRAGEDY ACCIDENTS HAPPEN

4 1 LEARN THE RULES OF THE ROAD We simply can t overstate the importance of educating yourself about the markets. Take the time to study the markets and learn the intricacies of trading before risking real capital. GFT offers a number of free seminars to help you learn how to get started. Visit our website for more information.

5 You would never buy a car without test - driving it, so you shouldn t place your first real trade without learning the ins and outs of the financial market s. Kathy Lien, Director of Currency Research, GFT

6 Short on (80 pips) (105 pips) Bear Left into POTENTIAL PROFITABILITY

7 2PICK A ROUTE AND STICK TO IT How can you get to your destination if you veer away from your path? Create a plan to guide your trading. It should include your profit goals, risk-tolerance level, methodology and evaluation criteria. Once you have a plan in place, make sure each trade you consider falls within your plan s parameters because you re most rational before you place your trade and most irrational once your trade is live. Contact us to learn how you can create a trading plan that works for you.

8 3 PRACTICE We can t give you a permit to trade, but we can help you get plenty of practice. Put your trading plan to work in real market conditions with a risk-free practice account. You ll get a chance to see what it s like to trade in real market conditions, while also taking your trading plan for a test drive without risking your capital. GFT offers free, no-risk practice accounts so you can get a feel for the markets and our trading platforms. Visit our website to get your free practice account.

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10 Whether you re a fundamental or technical trader, never trade without checking the economic calendar. Data like employment reports or central bank rate decisions can mean the difference between a winner and a loser. Boris Schlossberg, Director of Currency Research, GFT

11 4 CHECK THE CONDITIONS BEFORE PLACING A TRADE Fundamental traders prefer to trade based on news and other financial and political data. Technical traders prefer technical analysis tools like Fibonacci retracements and other indicators to forecast market movements. Some traders even use a combination of the two. No matter what your style, it s important to know how to use technical and fundamental tools to help you find higher probability trades.

12 5KNOW HOW FAR YOU CAN AFFORD TO GO You wouldn t take a week-long vacation on a day-trip budget. Develop a riskto-reward ratio that fits your financial situation. Know your limits, and how much you are willing to risk on each trade. Never risk more than you can afford to lose. Always make sure you have enough capital to trade another day. Which brings us to the next point

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15 6 KNOW WHERE TO STOP ALONG THE WAY Stop and limit orders can help manage risk and protect potential profits by helping you get in or out of the market at specified prices. With GFT you can even place automatic trailing stops, which trail your position at a specific distance as it moves, helping to protect any profits should the market reverse. Parent & contingent orders can help you set up an entire trade, including entry and exit points and risk management, in one quick step.

16 7 AVOID ROAD RAGE *stick to the plan! Check your emotions at the door because revenge trading is never sweet. When you have a losing trade, don t go all-in to try to make it all back in one shot. Stick with your strategy. It s smarter to make it back a little at a time rather than being stuck with two crippling losses.

17 As a trader, you really need to be prepared. The key is to not only expect the unexpected - sudden news announcements, changes in market sentiment or geopolitical developments - but also to employ a sound risk management system that provides you an extra peace of mind. Martin Slaney, Director of Global Dealing Operations, GFT

18 8KNOW WHAT TYPE OF DRIVER YOU ARE Understand your tendencies and personality traits so you can combat your weaknesses and maximize your strengths more effectively. For example, if you know you tend to be a more emotional person, you ll want to be extra careful to trade based on analysis and your trading plan rather than fear of losses or the excitement of potential profits.

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21 9REMEMBER, SLOW AND STEADY... One key to trading is being consistent. All great traders have lost money, but as long as they maintain a positive edge, they may still come out a winner. Educate yourself, stick to your trading plan, manage your risk and practice discipline and patience. However

22 10 NEVER BE AFRAID TO EXPLORE A NEW PATH Although consistency is important, don t be afraid to re-evaluate your trading plan if it s not working for you. As your experience grows, your needs may change. Your plan should be a reflection of your goals. If your goals or financial situation changes, so should your plan.

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24 gftforex.com gftuk.com gft.com.au gftasia.com gftarabic.com GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Futures, FX 360, GFT Global Markets Asia Pte. Ltd., GFT Global Markets UK Limited and GFT DMCC. Global Futures & Forex, Ltd., doing business as Global Forex Trading and as GFT Futures, is registered with the U.S. Commodity Futures Trading Commission as a futures commission merchant, and is a member of the National Futures Association. In Japan, Global Futures & Forex, Ltd. is registered with the Financial Services Agency as a financial instruments firm and is a member of the Financial Futures Association of Japan. In Australia, GFT refers to Global Futures & Forex, Ltd., ARBN , Australian Financial Services License number For Australian investors, a Product Disclosure Statement (PDS) is available from the company website Interested parties should read and consider the PDS before making any decision to deal in GFT products. GFT is the issuer of these products. In the United Kingdom, GFT is the business name of GFT Global Markets UK Limited, which is registered in England and Wales (Registration No ), with registered address of 34th Floor CGC 34-03, 25 Canada Square, London E14 5LQ, and is authorised and regulated by the Financial Services Authority. In Singapore, this information is made available to you by or for GFT Global Markets Asia Pte. Ltd. (Unique Entity Number N). The contents hereof is available or accessible for informational purposes only and is not to be regarded as an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product.the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. GFT is merely providing this information for your general information and the information does not take into account any particular individual s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon any information contained within. Trading of foreign exchange contracts and other investment products, which are leveraged, can carry a high level of risk, and may not be suitable for all investors. In Dubai, GFT is the business name of GFT DMCC, where GFT is Registered & Licensed as a FREEZONE Company under the Rules and Regulations of DMCCA, License Number DMCC ,, GFT, CFD 360, Chart Studio, DealBook, Foresight-A.I., FX 360, Spread Betting 360, are either registered trademarks or trademarks of Global Futures & Forex, Ltd., in the United States and/or other countries. The absence of a name or logo in this list does not constitute a waiver of any and all intellectual property rights that Global Futures & Forex, Ltd. has established in any of its trademarks, service marks or logos. All other trademarks, service marks or logos are the property of their respective owners. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. Trading of foreign exchange contracts, contracts for differences (CFDs), derivatives and other investment products which are leveraged, can carry a high level of risk and may not be suitable for all investors. It is possible to lose more than the initial investment. The risks must be understood prior to trading. Past results are not necessarily indicative of future results Global Futures & Forex, Ltd. All rights reserved. CD04G