How to correctly trade the Stock / Forex market

Millions of pounds can be won and lost in this market but at the end of the day it is just that; a "market".

You can spend a small fortune on any one of over a thousand trading strategies that will always promise you the earth, but you'd be wise (if you're entering this market for the first time) to firstly consider these things:- How much time do I have to trade; What am I trading for (income/capital growth); How involved do I want to get.

Believe me when I say I have been trading on and off for years now, and during which time I have signed up to expensive stock-picking software, subscribed to intricate charting packages, paid regular amounts for "the latest" strategy and so on and so on.................. and did I find "The Holy Grail"?.............. no ! Because there isn't one.

Today, my approach is simple and based on sound money-management principles that allow me to still be up, even if I were to make the wrong decision 60% of the time (but I never do).

One question I'm often asked is "How much can be made trading the money markets?"

When I first started out in this market I would have answered that question with a resounding "£millions!" However, thesedays - and with the low-risk strategies I choose to adopt - my answer would be a little different. In short, you can earn thousands of pounds but it can depend on how much "risk capital" you have to begin with.

Just remember these things:- 1) low-risk stategies require more initial capital because returns will not necessarily double a trading bank quickly; 2) high risk strategies allow you to start with less, can double a trading bank quickly, but do remember, it's said that 95% of current traders using these strategies lose eventually; 3) the power of compounding is huge - don't underestimate it. Just making an average 3% per month on a trading portfolio will more than double it in 2 years....... and that's just 3% ! (an average low-risk strategy should be producing upward of 5% to 10% per month).

In summary, I believe that if you can treat your trading as "investing" over 3 to 6-monthly periods, you will form the foundation of a winning mindset. This, coupled with only ever risking 1% to a maximum 5% of your trading bank on any one trade, will take out a lot of emotion and address some basic trading psychology principles, too.

 One of the biggest misconceptions - in my opinion - with these markets are that they can often be regarded as a get-rich-quick environment. This attitude is sadly a losing attitude for most who adopt it.

"Would you like one of my proven Forex trading stategies....... for nothing ?

 I was recently "hood-winked" into getting one of my successful Forex trading stategies down in print and for a short while, you could get a full copy with my compliments. Just send me an email with "Phil's FX Strategy from web" in the subject line. My direct email address is philip@hml-business.com  Please note that this manual won't be of any use to a complete beginner, but has been written with the novice trader in mind. A basic understanding of manually trading The Forex Market has been assumed in the production of this manual.