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The Critical Trading SkillYou may be a brilliant market analyst, but without a money management plan, you're probably doomed. On the other hand, you can be a lousy analyst, but with a good plan for your money you can still be profitable. It's the Probability ThingAs I mention all over this website, trading is about dealing with probability. There are factors at work that ensure we can never know what is going to happen next in the market.Your indicators may be flashing the mother of all entry signals, but chances are you'll just get into the trade when some rumor hits that stands the market on it's head! You can be wrong up to about 70% of the time and still profit with a good money system. In the Long Run, it Produces the WinnersIf you have the discipline to manage your losses while they are small, you are on the road to success. This is a little harder to do in the Forex market than other financial markets because of the larger price swings that make up the action.Draw your line in the sand and stick to the plan. Moving stop-loss orders usually only leads to larger losses which can be devastating to your account. If you can do a little better than break-even on a weekly basis, eventually, if through nothing more than luck, you will have a trade that will move rapidly and massively in your favor. The trick is merely staying alive until you get to that trade. It's In Your HandsYou have no way to control what the market does. You can, however, completely control what you do in the market.Take care of your money, and the trades will eventually take care of themselves. Wishing you trading success,
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