Page 173 - Ultimate Guide to Currency Trading

If you need to take a break, don't worry! The currency markets will be around when you get

back to them, and the Forex dealer will happily arrange for you to add more money back into the
account. If your 1984 Volvo 240 just died after 478,000 miles, and you need to take out most of your

hobby or trading money to buy a new (to you) used 2000 Volvo XC70, then by all means, do so! Rest
assured that in the future you will once again have enough money to put into your Forex account and

trade evermore!

Being Financially Independent of the Markets
There will undoubtedly be times when the market is reacting in illogical ways. For example, there

might be every indication that there is a big chance of inflation in the future, and you might have a few
long gold and silver trades on your books. There are times of extreme volatility in the markets and

these times could cause your logical trades such as the gold and silver to behave in very illogical ways,
such as free-falling into losses. It might be that there is so much upset in the stock markets that

traders and big funds are selling their positions in secure positions (gold and silver) in order to raise
cash for the margin calls in their other trades in the markets.

It is quite possible that the emotions of the market have gone bad in a very fast way, and that
there are too many sellers for the market to handle. It might be that the whole of the trading world is

upset, and your currency trades are caught in the middle. This situation, in turn, can get you very

worried about your FX trading and even the world in general. When there is talk of the world falling
apart or how it's really bad out there, you have to make a definite decision of how you will handle the
turmoil.

You have a choice. You can see yourself as a victim of the markets and subject to its each and

every hiccup and stumble. Or you can see your-self as an independent person who is operating her
own currency trading fund. If you take the latter approach, you will be prepared for downturns and
extreme upset. You can do this by staying informed, using only limited amounts of your capital, and

keeping a healthy portion of your money in very liquid assets outside of the stock market, the

currency market, and other assets that have a tendency to react to bad news. You have to think of
insulating yourself; at this point you are the manager of the fund and you are also your own customer.

If you had money in the market during the downturn of the 2008-2009 banking crisis, then
you know how fast bad news can travel. Stock values, gold values, house values, and even the banks

themselves can be under pressure. The markets' emotions do not have to be your emotions. In fact,
you could build yourself and your financial situation in such a way that you are as insulated from