Forex Position Sizing

Forex Position Sizing

When contemplating any kind of trade set up, a trader MUST understand that no matter how perfect the setup is, it is possible for something to go wrong and the trade may end up being a loser. That’s ok – it happens to everyone. Inherent in the forex market is a certain degree of randomness. That is not to say that the market is completely random – it isn’t – but it is so complex that a certain degree of randomness is unavoidable. This randomness is necessary for the proper functioning of any market. It cannot be eliminated, but it can be managed. So back to our perfect setup that failed: how could this have happened? Well, as luck would have it, as a part of its quarterly internal accounting procedure, some random multinational corporation just happened to be buying the currency that you sold, driving up its value