“Easy Money” is the stimulus that many Forex traders, start features. Trading with Forex websites offer “free of risk”, “high yields”, “low investment.” These claims have a grain of truth in them, but the reality of the badge is a little more complex.
Error of principle dealers
It 2 error often pretends that many operators make beginners: trading without a strategy and leave, that the hour of emotions, make decisions. After opening a Forex account can it tempting to dive in the middle of the and put into operation. Observation of the movements of EUR / USD for example one can believe that you are left long pass an opportunity if it does not immediately fit into the market. You buy and to see the movement of the market. Panic and sell, only to see the market recover.
This kind of undisciplined approach to foreign currency guaranteed to lose money. the merchants of Forex a rational negotiation strategy and not decisions should be commercial in the heat of the moment.
The understanding of the movements of the market.
To make sound business decisions that must be made currency traders familiar in the movements of the market. He should be able, technical studies for graphics and mark in and out points apply. The different types of orders take to minimize risks and maximize their profit.
He is first step to convert into a successful trader who is currency the market and understand the forces behind it. The operations of foreign exchange and why? This enables you to identify strategies for commercial success and used.
There are 5 large groups of investors, participation in FOREX: Governments, banks, companies, funds for investment and the merchants. Each group has their own goals, but 1 thing common to all groups with the exception of the dealer is the external control. Every organization has rules and guidelines for the Forex market and can you be held responsible for your trading decisions. Individual operators are responsible on the other page just for them.
These large organisations and traders approach the FOREX with strategies trained and if expect to have success as a distributor of the currency, which should follow the example.
Management of money
Money management is an integral part of any trading strategy. Also know what to trade in coins and as see success she signals input and output, the entrepreneur, to manage their resources and integrate the management of the money in your plan the proceedings.
There are different strategies for the management of money. Many based on the calculation of the basic equity – starting credit of less used money in open positions.
The core equity and limited risk
In a position to get try to limit the risk of 1% to 3% of each trade. This means that if you are trading a large number of default currency $ 100,000 you should limit your risk to $1,000 to $3,000. This is done with a command of stop loss 100 pips (1 PIP = $10) above or below the input point.
As his strict capital be raised or lowered, adjust the dollar amount of your risk. Open position with a starting balance of $10,000 and 1 your core equity is $9,000. If you want to add a second open position, the basic equity would be reduced to $8000 and you must limit your risk to $900. Risk in third place, should be limited to up to $800.
Greatest use, the risk
It must be as your core equity rises increase your level of risk. After $5,000 to use is your core equity now $15.000. transaction risk might be increased by $1,500. As an alternative, you can risk, benefit more than the original starting balance. Some dealers may be up to 5% against its advantages ($ 5,000 on a plot of land $100,000) risk for greater profit potential.
These are the kinds of tactical strategic allows as a beginner in the profitable trading using FOREX to a point of support.