Thursday, November 20, 2008

Diversification Reduces Risk

Diversification simply dilutes your profit potential if you have a small currency account.

You catch a big move, and your other trades lose, or give you only marginal profits, reducing your overall profitability.

You need to have confidence to go for the big moves, when they occur, and hit them hard with as much as you can afford.

Currency trading success is all about taking calculated risks when the odds are in your favor.

If the trade looks good, then you need to have the courage and conviction to go for it and risk as much as you can afford.

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