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Google Search : Internet Business Today.: How you can elevate yourself to Millionaire Status...: HOW YOU CAN ELEVATE YOURSELF TO MILLIONAIRE STATUS. Do you for one second believe that you can upgrade yourself to the same level of succ...
3 Important Things I wish I knew when I started Trading Forex.
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stephenadebiyi |
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3 THINGS I WISH I KNEW WHEN I STARTED TRADING FOREX .
Forex trading is not a get rich quick scheme but the facts remain that if use a good trading strategy with good money management you can be RICH.
However, Forex Trading like any other Investment portfolio, you need to learn everyday. This made me happy when I came across of an an article from http://www.dailyfx.com. Because, I learned and gained from the article, I believe you also will gain from it and more importantly helps in your trading activities.
Please, read on here:
Forex trading is not a get rich quick scheme but the facts remain that if use a good trading strategy with good money management you can be RICH.
However, Forex Trading like any other Investment portfolio, you need to learn everyday. This made me happy when I came across of an an article from http://www.dailyfx.com. Because, I learned and gained from the article, I believe you also will gain from it and more importantly helps in your trading activities.
Please, read on here:
TRADING FOREX - WHAT I LEARNED
- Trading forex is not a shortcut to instant wealth.
- Excessive leverage can turn winning strategies into losing ones.
- Retail sentiment can act as a powerful trading filter.
Everyone comes to the forex market for a reason, ranging between solely for entertainment to becoming a professional trader. I started out aspiring to be a full-time, self-sufficient forex trader. I had been taught the 'perfect' strategy. I spent months testing it and backtests showed how I could make $25,000-$35,000 a year off of a $10,000 account. My plan was to trade forex for a living and let my account compound until I was so well off, I wouldn't have to work again in my life. I was dedicated and I committed myself to the plan 100%.
Sparing you the details, my plan failed. It turns out that trading 300k lots on a $10,000 account is not very forgiving. I lost 20% of my account in three weeks. I didn't know what hit me. Something was wrong. Luckily, I stopped trading at that point and was fortunate enough to land a job with a forex broker. I spent the next couple of years working with traders around the world and continued to educate myself about the forex market. It played a huge role in my development to be the trader I am today. Three years of profitable trading later, it's been my pleasure to join the team at DailyFX and help people become successful or more successful traders.
The point of me telling this story is because I think many traders can relate to starting off in this market, not seeing the results that they expected and not understanding why. These are the three things I wish I knew when I started trading Forex.
1) FOREX IS NOT A GET RICH QUICK OPPORTUNITY
Contrary to what you’ve read on many websites across the web, Forex trading is not going to take your $10,000 account and turn it into $1 million. The amount we can earn is determined more by the amount of money we are risking rather than how good our strategy is. The old saying “It takes money to make money” is an accurate one, Forex trading included.
But that doesn’t mean it is not a worthwhile endeavor; after all, there are many successful Forex traders out there that trade for a living. The difference is that they have slowly developed over time and increased their account to a level that can create sustainable income.
I hear about traders all the time targeting 50%, 60% or 100% profit per year, or even per month, but the risk they are taking on is going to be pretty similar to the profit they are targeting. In other words, in order to attempt to make 60% profit in a year, it's not unreasonable to see a loss of around 60% of your account in a given year.
"But Rob, I am trading with an edge, so I am not risking as much as I could potentially earn" you might say. That's a true statement if you have a strategy with a trading edge. Yourexpected return should be positive, but without leverage, it is going to be a relatively tiny amount. And during times of bad luck, we can still have losing streaks. When we throw leverage into the mix, that's how traders attempt to target those excessive gains. Which in turn is how traders can produce excessive losses. Leverage is beneficial up to point, but not when it can turn a winning strategy into a loser.
2) LEVERAGE CAN BE A WINNING STRATEGY TO LOSE MONEY
This is a lesson I wish I had learned earlier. Excessive leverage can ruin an otherwise profitable strategy.
Let's say I had a coin that when heads was hit, you would earn $2, but when tails was hit, you would lose $1. Would you flip that coin? My guess is absolutely you would flip that coin. You'd want to flip it over and over. When you have a 50/50 chance between making $2 or losing $1, it's a no-brainer opportunity that you'd accept.
Now let's say I have the same coin, but this time if heads is hit, you would triple your net worth; but when tails was hit, you would lose every possession you own. Would you flip that coin? My guess is you would not because one bad flip of the coin would ruin your life. Even though you have the exact same percentage advantage in this example as the example above, no one in their right mind would flip this coin.
The second example is how many Forex traders view their trading account. They go "all-in" on one or two trades and end up losing their entire account. Even if their trades had an edge like our coin flipping example, it only takes one or two unlucky trades to wipe them out completely. This is how leverage can cause a winning strategy to lose money
3) USING SENTIMENT AS A GUIDE CAN TILT THE ODDS IN YOUR FAVOR
The 3rd lesson I've learned should come as no surprise to those that follow my articles... using the Speculative Sentiment Index (SSI). I've written many articles about this topic. It's the best tool I've ever used and is still a part of almost every trading strategy I am using, present day.
You can also read more here: http://www.dailyfx.com .
STOCK MARKET TRADING.: STOCK MARKET TRADING.: New York Magazine Story Of ...
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STOCK MARKET TRADING.: STOCK MARKET TRADING.: New York Magazine Story Of ...: STOCK MARKET TRADING.: New York Magazine Story Of Teen Who Earned $72 Mil... : New York Magazine Story Of Teen Who Earned $72 Million Tradin...
The Best Kept secret Of Trading.
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stephenadebiyi |
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THE BEST KEPT SECRET OF TRADING.
Forex trading is not only about using appropriate strategies, but also about proper timing. Yes, it is true that the Forex market is open 24hrs a day but it is not always active. This means that while you can make money when the market is going down or up, you'll find it difficult to make a profit if the market hours as well as the best times of the day and the best days of the week to trade.
The Forex market has 3 major trading sessions: the Tokyo session, the London session and the US session. Between each session is a period when two sessions are open at the same time. For example, both the Tokyo and London sessions are open between 3AM-4 Am EST while the London and US markets are open from 8AM-12PM EST. These then are the busiest time for trading since traders who wish to purchase currency from another continent can do so.
Of all trading markets, London usually shows the most movement because it involves a number of countries such as UK, EU member countries and many other.
TO BE CONTINUED..
Forex trading is not only about using appropriate strategies, but also about proper timing. Yes, it is true that the Forex market is open 24hrs a day but it is not always active. This means that while you can make money when the market is going down or up, you'll find it difficult to make a profit if the market hours as well as the best times of the day and the best days of the week to trade.
The Forex market has 3 major trading sessions: the Tokyo session, the London session and the US session. Between each session is a period when two sessions are open at the same time. For example, both the Tokyo and London sessions are open between 3AM-4 Am EST while the London and US markets are open from 8AM-12PM EST. These then are the busiest time for trading since traders who wish to purchase currency from another continent can do so.
Of all trading markets, London usually shows the most movement because it involves a number of countries such as UK, EU member countries and many other.
TO BE CONTINUED..
Foreign Exchange Risks And Benefits.
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stephenadebiyi |
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FOREIGN EXCHANGE RISKS AND BENEFITS.
Although, making money in the Forex Trading Market is a must if you know "how to", so also are some risks. But, if you know "how to" it can be avoided. No one can actually determines or say categorically that there are more benefits in the market than the loss. It is true that the platform or the Forex brokerage platform, Forex trading signals, Forex trading strategies or trading trending could be of help, a good money management control seems to take the center stage.
This where a good money management idea came to play. There are a lot of books there, lectures, tutorials and many articles concerning the risks, as a trader you must be able to perfect your own trading plans so as to break even at all times. To assists you in making money from the Forex Trading Market, I not only found this tutorials of help to you but the site is a must visit for anybody or trader who takes trading the market very serious.
Do not forget to drop a comments so as to enabled me know how the message from the site is to you or as benefited to you. Find it here:
https://www.investopedia.com/university/forexmarket/
Although, making money in the Forex Trading Market is a must if you know "how to", so also are some risks. But, if you know "how to" it can be avoided. No one can actually determines or say categorically that there are more benefits in the market than the loss. It is true that the platform or the Forex brokerage platform, Forex trading signals, Forex trading strategies or trading trending could be of help, a good money management control seems to take the center stage.
This where a good money management idea came to play. There are a lot of books there, lectures, tutorials and many articles concerning the risks, as a trader you must be able to perfect your own trading plans so as to break even at all times. To assists you in making money from the Forex Trading Market, I not only found this tutorials of help to you but the site is a must visit for anybody or trader who takes trading the market very serious.
Do not forget to drop a comments so as to enabled me know how the message from the site is to you or as benefited to you. Find it here:
https://www.investopedia.com/university/forexmarket/
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