Mark Thomas offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Forex Risk Management: Factoring In World Events Author: Mark Thomas Category: Word Count: 440 Keywords: forex risk management Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
Forex risk management is an issue that most traders quickly become aware of when they begin trading the market. While currency trading provides significant potential for making profits, there are also inherent risks involved. There are a lot of events and situations that can occur anywhere in the world at any given time which could have a massive impact on any particular currency pair. You obviously can't control these things but it highlights the need for proper forex risk management. There are world events of all types occurring everyday. Most will have little impact on the currency markets while others can have a very significant impact. Obviously the more extreme situations, or those involving prominent countries, are the ones that will have the biggest impacts. It is important to realize that you can't control all these situations but it is equally important to be aware that they can occur. This is where your forex risk management strategy becomes so critical. You need to be aware that there are uncontrollable factors that can significantly affect your trading positions at any time and without any warning. This can be a little scary to think about but it's also necessary so that you realize what this could mean for your overall profitability as a trader. To some extent it means always thinking about the worst case scenario. Plan for the worst and then hope it doesn't happen. We can all recall some major world events that have happened over the last decade. From the 9/11 terrorist attacks to the recent global financial crisis, all types of situations can occur with little or no warning. Every year there will be natural disasters, corporate collapses, and political upheaval - all have the potential to shift market sentiment very quickly and very strongly. So what can a trader do to plan for how major world events might affect their trading? Here's a few quick suggestions: * Develop a forex risk management plan that is specific to your individual circumstances * Build in some safeguards through use of stops or limit orders * Define your criteria and stick to it * Set specific targets and don't deviate from them * Maintain discipline in all aspects of your trading including accurate record keeping * Limit your exposure on any individual trade * Ensure that your bankroll is never at substantial risk * Constantly monitor your open positions and overall exposure It is human nature to think positively, particularly when it comes to something that can make us money. However, forex traders also need to be aware of events that are beyond their control and minimize their impact through implementing a forex risk management plan. Mark Thomas is the creator of Trade on Track - a secure web-based application that allows traders to track, analyze, and improve their trading. Visit http://www.tradeontrack.com for more information on how to take your trading and profits to the next level. ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
