By: Shonn Cambpell of TradingLife:OwnIt

Treating FX instruments like inventory

Managing inventory is not so much of a system as it is an ideology, a mind set. This state of mind can really be applied to any “trading system” as it has not set of rules except the same that apply to all retail businesses and that is simply: don’t put anything on your shelf you wont be able to get rid of at some future point in time for a profit. Whatever method you choose to make the decisions to put trades on your shelves is fine. Whatever. Just know that you have to move it later on, and you have to be able to finance your inventory while its on your shelves. That’s the other one I forgot to mention.

[ Read the Rest of The Blog Post ]