Money Management again...

Hi All,
I apologise that i could not post much today as i had some problems with my system and was busy thru the day with my trading and work. So finally, as expected, the crosses had a good retracement today. At the time of writing, they seem to be recovering a bit. Lets see how far they go in their recovery. My system picked up the short in the GJ and i made a good 100 pips thru that today.

The USD rate statement is scheduled for tomorrow and so hopefully that will divert some of the attention to the USD tomorrow. For the last 10 days all the attention and the action have been on the crosses. It is not time yet for longs in the crosses, but i feel that the time might come soon for the longs. This is why it is so important to have good money management and good stop losses.

Having good money management and stop losses helps you to switch positions and turn on your toes whenever the direction changes. Forex is a market where everything happens so quickly especially on the crosses. So you need to be flexible and ready to turn when the market turns. You should not be like a ship which takes 30 mins to make one turn.

If you dont have good stop losses and if you spend too much of your account in holding on to one position, then you would not be in a position to take advantage when the market turns. You will realise the market has turned and you will see that everything that u predicted is happening but you dont have enough money in your account to take advantage of that. So always have good money management and enough money in your account to make use of market turning opportunities.

Happy Trading!!