Good Capital Management Key To Forex Success
Leading independent trading resource site Independent Investor has suggested that the key to forex success is solid capital management, urging traders to protect and ration their capital like a raw material for generating a return.
Online, June 26, 2013 (Newswire.com) - Online forex trading resource Independent Investor has said that the key to succeeding in forex markets rests in careful capital management, urging traders to ration their account as if it were an asset or a raw material, essential for the creation of trading profits.
Capital is required in forex trading to cover the margin requirement of trading leveraged positions, a percentage of total transaction size that traders are mandated to cover at all times in order to keep their account liquid and avoid the broker closing open positions in order to fund margin requirements.
By preserving capital and trading thinly to protect the integrity of the account, traders can give themselves a better chance of building a profitable, sustainable trading portfolio, according to the online trading education site, which helps thousands of new and experienced traders improve the fortunes with forex.
A spokesperson for Independent Investor said that by retaining a position of tight control and monitoring over capital investment and management, traders can guard themselves against significant losses and save sufficient capital to fund growth and expansion of their currency portfolio.
"Managing your capital is the key to becoming a successful trader, allowing expansion and exploration into new markets, positions and strategies without giving enough weight to a single position to cause damage if it fails. A loss in forex that results in a percentage capital decrease is really bad news, because it reduces the size of the capital base from which you can earn future revenues. We advise traders keep a close eye as far as possible on their capital account, and use only a small percentage for active trading at any one time to breed sufficient security and stability to deliver long-term results."
"At IndependentInvestor.co.uk, we advise forex traders of all levels and abilities to trade less of their capital to give more career longevity. Particularly at the earlier stages of a trading career, having the ability to ration capital is critical towards earnings going forward, and can make a real difference in distinguishing long-term success from short-term failure. While that's not to say you should trade conservatively in every example, keeping a tight fist and remaining conscious of the risks of deploying too much capital should help keep you on the path to successful currency trading."
About:
IndependentInvestor.co.uk is an online investment resource site, hosting an extensive library of materials, strategies and trading techniques for success in the forex markets. Aimed at helping traders in a non-technical, non-jargon way, IndependentInvestor.co.uk assists investors of all levels learn the fundamentals of trading the financial markets, and the techniques and tips that give the best chance of successful trading outcomes.
In addition to its resources and trading materials, IndependentInvestor.co.uk provides direct comparisons, ratings and reviews of the market leading forex brokers, helping traders contrast different options at a glance to identify the most cost-effective, user-friendly forex broker.
