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Saturday, December 24, 2016

Money And Risk Management

How to keep yourself away from large amount money-losing

At the beginning of our story series, we are talking about MONEY AND RISK MANAGEMENT. It is not by mistake written down in big letters. We only want to highlight the importance of this post. First, you must know how to save your money which you have in your pocket, wallet. It is crucial. Why is it so important and why we are talking so much about it. Many of us have heard the story about two newbies traders. They have had all information and tools to make decisions how Forex trends should go. They wherein separate rooms, and after awhile they ended their adventure in Forex trading, unfortunately, without any money.
In same time two experienced traders, wherein one other room and they were directed to trade in opposite directions. It is usually, for newbies to expect that one must win other to loose money. In this case, the story is complicated and now less understandable. Both of them are winners! Why? This question is the question which Forex newbies often repeat.
The crucial thing here is to save capital which is in your pocket. What is so important here? Look at some examples.
We are going to explain it with some data in the table below. The second column shows money which some potential Forex trader loose and third one shows money amount which the same Forex trader needs to win if he wants to have an as same money amount as before trading.
Losses Recovery Wins
1 1 1,01%
2 2 2,04%
3 3 3,09%
4 5 5,26%
5 10 11,11%
6 20 25,00%
7 30 42,86%
8 50 100,00%
9 70 233,33%
10 80 400,00%

The table talks so much. The first example shows us: if someone loses 1% of capital, needs to win some more than 1% of the money. It is less than a usual amount which Forex traders win in their transactions. The second one shows that if someone loses 2% of his money he needs to win 2.04% of his available capital. It is not so much. Let's see greater losses. If someone loses 10% of his capital he needs to win 11.11% of his available capital if win he would have as much money as before losses. To win so much money, you need more skills and not to lose no one more time yet. Let's look at 500% losses. Someone who loses 50% of his capital needs to win 100% of his available capital! It is soo much money and if he does not lose any more money he is a very lucky man or very skilled. Let's look at the last one example. Someone newbies in Forex trading losses 80% of his capital he needs to win nothing less than 400% of his available capital. There is nobody who can say, maybe some little of them, it is impossible to recover from this situation ever. Alternatively, on the list, he needs very, very much patience and of course lucky and skills to do that. In reality, it is never. However, do not give up! Ever do not say never! You must have this in your mind ever. A big number of traders knows this story it is not our fiction. However, when some traders start to wind they give himself the freedom to forget about this and often almost lose all capital spent in Forex trading and wich was collected many years.

How to solve this?

Money and risk management, forex trading, do forex
Money and risk management
The solution is very easy. You must regularly set stopping loses. Always! Money and risk management is crucial! There is no exception in this. What it is we'll explain in other articles. Only what we say now is, it is something that every trading platform has. The trading platform is the tool for online Forex trading. There is some advises which maximum amount of capital you need to put at risk setting a position. For beginners, the most acceptable is, do not risk more than 1% of your money! Do not forget it in any situation! Do not think: OK; I will this time do differently than they say in the advice; I need to make more money or to save yourself from current losing. If your prediction of trend moving was wrong, then you can not correct it by moving stop loss. Do not try it. There is a story that someone who played cards for money was not lost so much money because he played cards for money, but it was because he wanted himself recover from his losses. So the result was much worse than that he gave up on time. Another question which we want to discuss is: What amount of money I need to put in my Forex account to be a more successful trader. The answer is not simple. From the point of view, of Forex trading, much more money in your account represents greater security and provides increased opportunities for trading. However, always keep in mind that all the money from the account you can lose in the worst case in only one bad transaction, which is the case if you do not set the stop loss. The advice is the following: to train yourself on demo accounts, and when you gain enough experience, this dilemma for you will not as difficult as it is now. The amount of money invested in the Forex account must be less than the sum of money that can endanger your family. In previous text: Forex Investing, we are discussing problems close to Forex investing.

Where to Go From Here

Start of the Forex Course: Do Forex
Previous text: Forex Investing
Back to top: Money and risk management
To be continued...

Forex Investing

Forex Investing

Money and risk management, Do forex trading
Forex Trading online

Why you should do Forex.

Reasons to do Forex.

When the facts become explained, many of readers will get the courage to start to do Forex. Make money would have to be one of the many good reasons. In this series of posts, we are going to explain the difference between trading Forex and other markets, and why trading Forex for a broker is very profitable. There is no only one more reason why Forex is so popular nowadays. One of them is: best Forex broker offers small start-up requirements and relatively inexpensive account costs if no cost at all. Trading starts with as little as a few hundred dollars, sometimes less. Best Forex brokers offer accounts with no Forex investing and with pre-approved bonuses. Best Forex brokers usually provide free all included trading platforms and needed data for making decisions in trading, some brokers nude FAQ's archives with knowledge and free short training courses and support in a prediction of trends. All to make potential traders ready for trading. In other words, ready to make money, for them and of course for brokers. With online stock brokers, traders typically need to maintain significantly minimum balances or minimal monthly average trading volumes or a critical minimum of balances on their accounts. Broker Companies regularly give you a chance to open demo account on their servers. Also, using this demo account you make practice on the accounts that permit simulate all real transactions, trades, and predictions of trends and all on real data without risk for your capital, of course without a chance to make any profit. All you can get is knowledge without any hazards. On those accounts, you are preparing for real situations where is all the same only your capital is under test, can be increased but can be loose at all. Use that possibility as much as you need it. Moreover, do not hurry, prepare yourself as much as you feel that you need more practices than you have. If you lose all your money from demo account, it is OK, full it, or open other and do practicing again. Do not give up. When you trade in those demo accounts do every as it is a real account, only that can prepare you for more serious business. Do not think it is only a demo account and it serves to play games with them. It is OK if you try more aggressively some tactics or try some strategies which regularly would not work. All of it must have a point. When you do all of it have in mind: be better in trading Forex. Most Forex brokers charge no fees, commissions, or hidden charges. They earn their fee on the spread. What spread is, we would explain in other texts in this post series about Forex. In general transaction costs are lower compared to those of online stock brokers. There are some more reasons to trade Forex! We are continuing to explain what are reasons to trade Forex. Why we should do trading Forex. Forex expertise makes you a better trader and investor not only for Forex but better investor at all, dispute of area. Preparing for Forex trading, you adopt a broad area of knowledge. Trends in Forex are influenced by trends in other markets but usually, Forex is faster and reacts almost instantly. You can use Forex for prediction of trends in other markets. One reason is that trading Forex has flexible hours. You can do Forex trading in a seamless 24-hour session, 5.5 days a week, from Sunday 5:15 P.M. EST until Friday 5:00 P.M. Forex markets offer the best liquidity. There is not a chance to be different because of an amount of trading and number of traders. A more liquid market is one that has more buyers and more sellers. Number and amount of trading are most important. The more purchasers and vendors at any given minute, the more probable you are to get a reasonable cost when you purchase or offer. Everyone wants to play a role in the place of that market where you can in every minute sell or buy at reasonable prices. In contrast is, when we have a market with lower liquid. I this situation a few big players can manipulate prices to their benefit. To be sure, not at all like in securities exchanges, even the greatest players experience difficulty controlling the value, activity in real money combines past a matter of hours. It is important that Forex there is no centralized authority which can control prices and there is no power to regulate trends. It is a benefit for everyone participant in trading. In most securities exchanges, the expert is an individual element that serves as purchaser and merchant of last resort and controls the spread, which is the contrast between the purchase and offers cost for a given stock. Despite that the markets are regulated and, in theory, it is prevented to not doing abusing. Experts are professionals and know how to do that within the norms. Moreover, they know to get away with a degree of this and force you to buy higher or sell lower with a benefit for them. With Forex exchanging, no only pro manages costs of individual money sets. Instead, multiple brokers Company and brokers are competing for your business. Another explanation behind exchanging Forex is that there are high liquidity and decentralized markets which imply less slippage. Slippage is the distinction between the expressed cost on your screen and the value you pay or get. The less liquid the market, the more often slippage happens because fewer traders are present to take the other side of your trade. Forex markets are less affected by activities from one relatively great group of actors. It is a direct result of:
  • Forex is Highly Liquid
  • Forex regularly running at full speed in no less than one if not two landmasses 24 hours per a day, more than five days per a week and exchanging at such bigger volumes than values,
  • Because of many on-screen characters here, there is space at expert to oversee costs.
Without a doubt, various Forex actors give "no slippage" arrangement that decreases the level of value vulnerability ... All in all, Forex brokers are very helpful and offer many opportunities to gain your trust and you as their service users. In the previous text we are talking about Forex, but in the next text, we are going to talk about money and risk management which is the most important if you want to save your capital and of course to increase it. In the previous text: Do Forex, we are talking about basic terms about Do Forex. In the next text: Money and risk management we are explaining, I suppose the most important, it is how to protect yourself from losing more money tan you can recover from it.

Where to Go from here:

Start of the Forex Course: Do Forex

Wednesday, December 21, 2016

Do Forex Trading Online

Forex trading

​Forex trading basics

The speculation markets can rapidly take the cash of newbies who believe that Forex trading is simple. Any trading is difficult and success trading coming with learning and practicing. So, what is Forex trading and is it well for you?
Forex trading is a 24-hour showcase that is just shut from Friday night to Sunday evening, yet the 24-hour exchanging sessions are deceiving. There are three Forex trading areas that include European, Asian and United States area. Despite the fact that there is some cover in the sessions, the principal monetary standards in each market are exchanged for the most part amid those market hours. This implies certain cash sets will have more volume amid specific sessions. Dealers who remain with sets in view of the dollar will locate the most volume in the U.S. exchanging session.​

​Forex trading blog

​​On this foreign exchange blog, we are going to explain nearly all Forex phrases, the way to do best Forex buying and selling, the way to open Forex demo account, the way to find the nice Forex broker and is foreign exchange investing properly for you. Moreover, we are going to explain what automated forex trading is, and we're going to talk about all Forex questions which might be widespread for novices and intermediate users. Here you could find articles about foreign currency.
Learn forex trading, forex trading, money and risk management
Forex trading can be very profitable
This blog is the notable start line for starting and intermediate traders who can locate the satisfactory foreign exchange indicator explanation. We're explaining what is spread, and what indicators are and a way to use them. The most critical is money and risk management. This, you want to recognize earlier than any trading strive. We're going to provide an explanation for it and teach you a way to try this at the start of this series of articles, which protect your capital. In different words, the way to trade Forex online! When you make the choice to make unfastened foreign exchange online, get into the foreign exchange world you want to preserve to read foreign exchange news, continuously read articles about the way to do foreign exchange at higher level. Foreign exchange demo accounts getting a splendid position in it. Use it profusely! In the textual content: Forex investing, we are explaining greater element foreign exchange making an investment and why you should consider to play in. Let's do it and right good fortune!

Where to Go From Here

Back to top: Do Forex
Next: Forex Investing