Profit From Mistakes Other Traders Make

Traders will always make mistakes. Even with the most accurate trading plan, there will be times when a trader loses a trade. Rather than sit back and relax, why don't you take the initiative and profit from the mistakes that other traders make.
It may seem a little low to profit from the mistakes of others but this is the world of trading. Regardless of what market you are invested in (Stocks, Binds, Options, Currency, or Warrants) you are essentially trading against another person. Yes there might be a chance that you are trading against an institution, but who calls the trade in an institution? Isn't it a trader like you? A person who has needs, wants, feelings, character background traits and idiosyncrasies. People exactly like you...

So how then can you profit from the mistakes that other traders make? Well there are 3 simple ways to leverage your profits. Let's discuss these 3 steps in greater detail here:

1) Be prepared for market movement. A lot of traders are caught flat footed when the market reacts against them. Take for instance the case of the latest financial crisis. How many investors both private and professionals were literally caught with their pants down! Yet there were a select few who saw the bubble coming to a burst and positioned themselves accordingly. Needless to say, these traders and investors managed to make a handsome profit from it all.
2) Diversify your positions. It is surprising that the most fundamental of principles are ignored by many traders. One of them is the principle of diversification. Once again for an example, take a look at the latest financial crisis. You can see that many traders got burnt because they were trading within a tight and narrow band of stocks that were closely related. This is not the way to make money. A smart investor would be looking to take positions in totally un-correlated industries and sectors. This way should there be fallout in one sector, the trader can move to another sector and profit.
3) Set a profit objective. Greed kills faster than any other factor in the world of trading and investing. When a person is stricken by the greed bug, there is never enough. Even when all the signs point to an exit, the greedy trader will want to "ride the profits" and keep staying on in the trade. That is suicide because it is habit forming. You may be lucky once or twice, but not forever. This is the start of a gambling problem, something that many traders fall into and cannot get out.

You want to set a reasonable profit objective, take your earnings and then realize them. Profits are not profits till you have exited the trade and banked the profits into your account. If you are in a trade, you are never in profits, remember that.
The above 3 ways are not the only ways to profit form the mistakes other traders make, but they are a beginning. The fact that so many traders actually ignore these "common-sense" points, it is no wonder that 95% of new traders fail and lose money. Be smart and keep ahead, plan ahead and stay ahead.


[Sigma Contract Specification]

Sigma Forex provide the clients with the lowest spreads in Forex Market for the most traded pairs and Forex spots.

Trading Hours
Sigma Dealing Room operate 24/5 from Sunday 23:00 CET until Friday 23.00 CET.
You Can contact us directly: + 41 435 004 145

Margin Requirements
The margin requirements must be respected by Friday at 23:00 GMT and before holidays.
One of our dealers will contact you if you are below your margin requirements at that time. Your margin requirements will depend on the client's account equity. However, if you approach the level where the loss of your open positions approaches the balance of your account, you will be stopped out and your positions will be closed. Stop positions will be executed when there is only around 50% equity of the required margin left in your account.

Streamline Dealing
Clients will not suffer Price Re-Quote that you can buy and sell directly on real-time prices without a request for quote (RFQ).
Clients taking advantage of wrong price quotes in the Market Watch will be requoted.
Sigma Forex effort is taken to ensure correct pricing at all times. However, there are rare circumstances when wrong prices are given.

Stop Order Execution
Volatile market conditions can result in prices gapping, which may prevent the execution of stop orders (sell stop, buy stop, stop loss) at the price you initially requested. However, our dealers strive to execute all stop orders at the price, or failing that, at the best attainable rate the market allows.

Lot Types
Sigma Forex has generated an ultimate account type that allow you to trade Standard, Mini and Micro lot in the same account which is Sigma Account to make it more simple and easy for traders.

Multi Currency Denomination

Sigma offers the ability to set-up accounts denominated in the following currencies:

• United States dollar (USD)
• Euro (EUR)
• Great Britain pound (GBP)
• Australian dollar (AUD)
• Swiss Frank (CHF)

There is no minimum deposit for opening an account, in order to review the spreads, pip value & margin requirement choose the required pair, leverage & the lot type.

If you have any problem regarding Sigma Contract Specification click on the Live Chat button on the right hand side and our customer support staff will help you through the process.