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Poker Tips That Can Be Applied in Forex Trading

Trading foreign exchange on the currency market is fast becoming a hobby especially for the young professionals. The thrill it brings, the potential source of earning investment it projects and the existence of various online FOREX trading brokerage lure a lot of people to trade currency.

Currency trading, just like playing golden slot games is a form of gambling and most gamblers likened it to playing poker because of the similarities in the strategies used when playing a poker game and when trading currency online. A poker player can crossover to trading and will be able to learn the ropes fast and most likely become a successful trader in no time. His poker skills will come handy in the trading world.

Just like in a poker game, there are numerous tips that will help a trader improve his profits and stay longer in the trading market. Here are some helpful poker strategies that can be implemented FOREX trading. Read up traders and learn from poker players.

  • Learn the game well. In Poker, the player must have full knowledge of the game and learn how to play. In trading, whether you are a beginner or a seasoned trader, education is essential to a successful trading.
  • Know how to bet properly. Putting a position in trading is like placing a bet. This is where betting strategy comes in. Use the best trading technique that will not only give you a winning tradebut will also keep you from getting broke. Just like in poker, only risk what you can afford to lose.
  • Always know when to fold. Folding in poker is similar to stop loss in trading. When in doubt about the the position you place, setting a stop loss will prevent failed trade to max out your entire account.
  • Be realistic. Poker is a game of skills and chance. Same with trading, you can’t expect 90% of your trades to win or expect your $100 trading capital to gain $1000 in a short period of time. It’s no guarantee your trades will always be a success even if you have mastered the trading skills. Sometimes, the odds are with you and sometimes, it’s just not your day.
  • Know when to stop.This is by far, the most important tip.In poker games, people tend to be greedy that they will risk all their pot to get more. In trading, same thing happens. When you are winning, you are tempted to open more positions instead of setting a limit and using the take profit option to protect your supposed income when the market starts to move against your position. Don’t let greediness control you. Better stop trading when you are still earning than lose everything in an instance.

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