I just want you all to know that I am putting further development of this Forex training site on hold for at least a few weeks. I am working on a project to help my local community financially so the Town vision can actually be attained.

Since Forex trading system management is very definitely not for everyone, I am taking responsibility for some of the economic development of my little town: Meredith, NY. Apparently, I am the only person in the town who can do so! It’s quite amazing, but my help is needed.

So, while you have this little break, please take the time to learn the basics of chart reading that I have put up here for Forex Traders to become more consistently profitable. You might even have time to create your trading system from the little bit that is here!

That would really be great. So, until I have a better idea of how long this town project will take me, I’ll just leave this trading material online for you to study and use how you want.

Have a truly phenomenal trading month! I believe that the 4th quarter of 2008 will be unbelievable in the potential (so I will be moving as quickly as I can while also doing as well as I can to help)! Trade well.

Risk and money management in trading is essential to long-term success in trading. I don’t just say that: It’s the very foundation of the very successful traders in every market.

Risk is basically exposure to the threat of loss. When ever you begin a position, you are exposed to the possibility of loss. There’s no way around it. The threat exists. That’s why we use mental or actual stops. (A stop is an order type, which we’ll cover another time, but in this context, it means stop loss. A stop loss is the price point at which you want to stop taking losses on a position or trade.)

Money is an idea backed with confidence. At least that what the central banks write, and every great thinker on the subject has written, so to me it’s a certainty - it’s definitely true. Confidence manifests itself in several ways, and those ways will eventually be covered by themselves here.

Management is essentially control. There are many things that you as a trader can and do control in your trading. There are some things which are out of your direct control, but that you can work around. You can control when and where you place your orders, which type of order, which indicators you use, which fundamental info you use, how you analyze it, how good you are at the various parts of your trading system, etc.

So Risk Management is controlling your exposure to the threat of loss.

Money Management is controlling your money - sitting in your account unused, being used, and additional that will be added when you close all or part of your position.

The 2 Primary Goals of Trading

There are only two goals in trading:

There are no other actual goals in trading. Every other conceived goal is one of the two above.

The two goals are in their order of importance.

When your goals are out of alignment with the two goals above, if your primary goal as a trader is to make money rather than protect your capital, THEN and only then will you be struck with greed, fear, “gotta make this work” (meaning you won’t), trigger shyness, and all the other bad emotion that ruins trader after trader.

That last paragraph is VERY important. When you are feeling greedy, your goals are out of sequence. When you’re fearful, your goals are out of sequence to what is required. That is the source of the bane of trading emotions: Your own goals are out of sequence of the rules of the game, or one goal is missing completely. Period. There is no other source of greed, fear, etc. than that.

Review: Two goals of trading are to protect your funds, and then to profit. You can control your risk to the degree you know how. You can control your money to the degree you know how.

Risk and Money Management tied to the Two Primary Goals of Trading

Risk management is the first goal: to preserve your capital, protect your funds.

Money management is the second goal: to profit from trading.

There will be no video for this post. It is very concise. Read it again and again, I suggest.

Have a truly phenomenal week!
Russell

Welcome to Domination Trading! This site will not only teach you about being a great currency trader, but if you’re bright enough, pretty much how to dominate the Forex market of your choice.

What is planned for this site is nothing short of ground-breaking, and could change the face of Forex trading for a long time to come. The principles that will be taught by me (and hopefully others will contribute, too) are the foundation of all successful trading, and will be built upon into anything you want for yourself.

With all of the so-called “trading systems” out there, and I’ve personally bought, studied and tested over 250 of them in the past 14 years, only two were actually complete trading systems. Two out of over 250 - which is less than 1%. Well, that isn’t right.

The basic philosophy, the foundational philosophy, to the forex trading systems coming, all start with basic risk, money and profit management. That IS the foundation of all great trading. And the discipline to take the required actions when told to by the system that you’re using.

That boils down to trading system management. A lot more of that is forthcoming. I beg you to ask me questions so I can make you videos, write more content that you want to read, and direct you to becoming the best trader you can possibly become. There’s a lot involved. There’s a lot to learn. There’s a lot to know about currency trading in the Forex markets.

Let’s get a good start tomorrow. So register, comment, and tell people about this site… More is on the way.