Friday, December 26, 2008

Forex Options Trading - How to Control Your Emotions in Forex With Money Management Principles

You're sure that you'll gain money. You even tried playing mock games in Forex trading. You know everything there is to know in finding the right currency. Hold your horses for just a minute. Don't just dive yet in the real thing. Your emotions might cause you to lose money. Controlling your emotions cannot be learned by playing a mock game. Greed and despair can affect your currency choice.

One way of protecting yourself is knowing how to manage your money. Money management starts not in choosing the right currency but way before that. Before analyzing your currency choices, start by knowing how much money you are going to invest.

Money management is a strategic tool in preserving your capital. Instead of putting all your money in one currency, money management will limit how much money you put in. So when your currency of choice didn't perform well, you'll end with enough money to choose another currency.

Money management is not diversification in currency but the diversification of your money. Instead of putting all your money in a particular investment, you put your money one at a time. It's like dropping your money in a piggy bank. You can't just put in all your money. Money comes in one after the other. This strategy can help you in controlling your emotions. Instead of being ruled by your emotions, have a system that will make your emotions under control. The more systematic you are in choosing a currency the better are your chances.

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com - He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm

Article Source: http://EzineArticles.com/?expert=Timothy_Stevens

1 comments:

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