Best FX Traders

Robert Aguilar of Best FX Traders wrote an excellent article about how
to spot forex scams. You will find it at the bottom of his homepage
along with other articles that are worth reading.

Best FX Traders

As Robert is a well known source of investing and FOREX education it is worth getting on his list to have access to his knowledge. He is cautious and trades low risk and low leverage. He sends out emails that are worth getting. Robert tells is as he sees it.

Beginners forex - what is a stop loss ?

• Stop Loss Order – When an order is put in position it can be automatically stopped at a specific price and is commonly known as a stop/loss order. Stops are used keep the exposure to losses at a minimum if the market moves against an investor's position. For example, if an investor is long (investors purchasing position at lowest cost) at USD132.45 you may put in a preset stop loss order just in case the dollar drops. It can be set for any amount you wish but for example lets use USD131.55 as what we will set to minimize losses, that is if the dollar drops below your purchasing position. What we are aiming for here is for the dollar value to rise, but just on the off chance it drops the stop/loss order is a safety net.

• The only thing you can control in Forex is when you buy and when you sell so having set a stop loss order gives you a very small chance of control over losses keeping them to a minimum. Naturally this is something you are not aiming for as selling below your cost brings a deficit……hence the name stop/loss.