Trading the Forex markets is like farming in many ways. Join me as I share some of my views and interpretations. Unconventional? - Maybe. Effective? - You Decide
Trading Forex, just like a farm or any other business has an element of risk attached. The key to successful business is to run at a profit. Every business requires capital investment and has expenses and general running costs - Trading Forex is no different and should be approached in the same way. And remember – trading forex, like farming, is not about getting “lucky” – it's about managing risk, being patient, disciplined and working to a plan.
DD is a normal part of trading that accounts for losses, gaps or spikes and other costs and expenses. This is a risk tolerance indicator that can quickly show the type of money management rules that are used. The Forex Farmers key objective is not to exceed 15% DD - 20% MAX. In most cases, DD it is simultaneously compensated and countered by profitable running positions. The art lies in allowing profitable trades to swing the balance.
