Financial markets are always interesting, never dull, but it could be said that the last few years have been more interesting than usual. The global financial crisis and the response from world central banks has led to financial events making the front pages of world news, when previously, this would not have been the case.
There is a good reason for this – the world of finance is more perilous than it has been in recent times. Stock markets can no longer be relied on to produce stable, solid returns and Forex markets are increasingly fought over by governments who all want to devalue their own currencies. As a result, there has never been a better time to learn how to survive in the markets.
The key to surviving in any market, not just Forex, is the preservation of capital. Only once capital has been preserved can a trader even think about growing wealth. Because growing wealth without thinking about capital preservation means taking on unwanted levels of risk. [Read more...]