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HOW TO PROTECT YOUR INVESTMENT IN THE FOREX TRADING MARKET.
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stephenadebiyi |
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HOW TO PROTECT YOUR INVESTMENT IN THE FOREX TRADING MARKET.
Good Forex money management can take a trader from gambling with his or her money ,hoping for a gain,but probably encountering many loses,to successfully trading while maximizing losses.It may not be as exciting as other aspects of Forex trading,but for traders who want higher gains,money management is an absolute necessity.
today,i will be explaining how to use risk/reward ratio as a tool in Forex money management in trading.The risk/reward ratio means the amount you are risking i.e your stop loss amount against the amount you stand to gain i.e your profit or limit on the trade.
For example, if you enter long on the GBP/USD at 2.0040 and you enter a stop loss or determine you will manually close the trade at 2.0020 if it goes the wrong way then your risk is 20pips per lot.If on the same deal you determine that your target or where you will take profit and close the trade is at 2.0140 then your reward is 100pips i.e 2.0140-2.0040=0.0100 or 100 pips.So on this particular trade your risk/reward is 100pips /20pips or 5:1.
If you have a risk /reward ratio of1:1 it means you risk the same amount as your reward each time,then obviously you have to win 50% of your trades to break even.Below are a few risk/reward ratios and the win percentage you need to break even.
1:1-50%,2:1-33%,4:1-20%,5:1-17% and 10:1 equals 10%.
The best traders I know practice good money management with good risk/reward ratios.Ratios of at least 2:1, up to 4:1.
HOW TO MAKE MONEY FROM FOREX TRADING REFERRAL PROGRAM.
1.Trade Forex and Binary options/bonds from one account.
2.Get $100 free bonus to start.
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4.Earn up to $500 CPA.
5.Earn up to $50 CPL.
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HOW TO PROFITS WITH EUR/USD PAIR.
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stephenadebiyi |
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FOREX TRADING MARKET:HOW TO PROFITS WITH EUR/USD PAIR.
The fact is that if you as a forex trader buy the pair,you are betting that the euro will increase in value versus the USD and if you sell EUR/USD,then you are saying USD would increase in value to EUR.
To profit from this pair,you must take the advantage of what moves EUR/USD.
WHAT MOVES EUR/USD?
1.Surprises in US economic releases:This pair would move when results comes as a surprise,especially indicators that measure growth or recovery in the US.Thuis uncomplementary news on US economic growth favors the euro.
2.Interest rates:If Fed raises interest,it boosted the value of the dollar.This is because money would flow into the US as investors move to capitalise on these higher returns.
3.Oil prices:Since the US economy is highly dependent on imported oil,movements in the price of oil tends to impact the value of the dollar.
4.Trade:More imports to exports has tghe power to reduce the value opf the dollar in the long run because the market is very concerned with theb trade balance in the US.Changes means a shift in the value of the US dollar.
In all watch the Us economic data closely and take good advantage of uncertainty about US economic recovery.In the absence of a trend,go for range trading strategies.
HOW TO APPLY MONEY MANAGEMENT IN FOREX TRADING.
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stephenadebiyi |
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HOW TO APPLY MONEY MANAGEMENT IN FOREX TRADING.
PART 1
A traders money management style can be the difference between a loss and a gain.Most traders do not care for this aspect of trading,but it is very important.
In many cases of large losses,poor money management was the culprit.Everyone wants the $1billion profit in a single day,but that is market gamble.Good Forex management ,though,can give a trader much better odds of a large gain than a trader who has little or no money management.
I agree with some of my friends who are trends followers that beginner traders should not risk more than 1% of their total equity on any trade.At 1% ,a loss is very minimal and it is much easier to recoup and rebound.
On an individual trade ,the 1%makes little difference and even if the trader is wrong 20 times,he or she will still maintain 80%in equity.This type of Forex money management,however,requires discipline which is often in short supply with many traders.
Money is very easy to lose,but not so easy to make back.For example,a trader invests $100,000 and loses $50,000.This is a 50%loss.However,the percentage that the trader must make in order to get back to the original $100,000 is actually 100% this would mean that there was a 50% draw down,the percentage of the difference between the peaks and trough of an investment.
It is thus advisable that traders who are joining the Forex market for the first time should use speculative capital only.In deciding how much money to begin trading with,it is advisable to select an amount that can be considered as an acceptable loss.
HAPPY TRADING.
HOW TO BE SUCCESSFUL AND DOUBLE YOUR PROFIT IN THE FOREX TRADING MARKET.
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stephenadebiyi |
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HOW TO BE SUCCESSFUL AND DOUBLE PROFIT IN THE FOREX TRADING MARKET.
I believe you have read how you can double profit in the Forex trading market following the trends of the market and Leveraging your account at http://www.sundayinvest.blogspot.com.If not ,go there and read it.It is a profit oriented information on Forex market trading.
Today, I will be taken you through another system called Social trading system.Social trading system is a system whereby you as a trader follow and copy the trade of a chosen professional trade live.
Do you asked the question that "how will I know that the person i want to follow is trade is more Forex trading know-how more than I do.All what you need doing is to go for history/years of experience in trading of the person you want to follow.
Also,check the records of winning trades of the person you want to follow and copy its trade.Check whether the person you want to follow is not trading on practice accounts.
After you have been satisfied,then you can go ahead to follow him or her.http://www.etoro.com and other Forex trading platforms accept social trading.
TRADING TIPS
1.Be emotionless and do not be distracted when trading.
2.Use stop loss.The best place to put your stop loss is a little below the last trade price.
3.Take your profit when the trade is good.
HAPPY TRADING.
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