Tag Archives: forex

Trends in Forex for 2016

There are a variety of ways to maximize your earnings through Forex markets, whether its focusing on short term movements, or looking at the long term possibilities. It’s easy to overlook the long term, due to frequent, unexpected changes that may come up. Regardless, it would be prudent to continue to look at trends that may come up throughout the remainder of the year.

How To Avoid Premature Stop-Loss Triggers

How To Avoid Premature Stop-Loss Triggers

Placing stop loss orders can save a FOREX trader from sustaining heavy losses. While more advanced and experienced traders know what type of parameters to include in their stop-loss orders, it is more challenging for the beginner trader to determine these parameters. The beginner trader wants to save themselves from losing money but at the same time does not want to trigger a whole series of unnecessary sales that cost a lot of money in commissions either.

In particular, such unnecessary sales might cost the beginner more money because the market is actually showing signs of a quick rebound. They need to have reasonable protecting for their investment to mitigate all angles of risk. So what is a beginner trader to do? Glad you asked. The tips in this article are meant to demonstrate how to evaluate what stop loss orders to use.

The Value Of Fundamental Analysis

Fundamental Analysis

When approaching the financial markets, traders usually either come from different camps. This would be either through fundamental or technical analysis backgrounds and traders will constantly argue which style is better but history has shown that the successful traders usually employ a combination of both these types of analysis in their repertoire.

If one were to read the most classic of trading books out there, “Market Wizards” by Jack Schwager, one would learn about Jim Rogers and Ed Seykota. Both were very successful traders but each were on complete opposite sides of the spectrum as Rogers was

Using Leverage And Margin


One of the main reasons why people love Forex trading is the amount of leverage that is available to the average trader no matter how small their account size is. In other forms of trading like the stock market and the futures market you need a pretty large account size to get a large amount of leverage, which means that it takes having a pretty big account to trade enough size to make any money. This is one of the main reasons why people love trading Forex because you only need a small amount of money to trade using a lot of leverage.

Here’s a warning, leverage can get you in trouble. One of the most common warnings to traders is that they use too much leverage and their losses are compounded heavily due to the amount of leverage that they use. This is the Yin and Yang of leverage. On one hand it means that you can use a small account to make a good profit but it also means that you can quickly over use leverage and burn through all of your money. But do realize that there is a way to overcome this hairpin trigger.
The best way to combat the risk of using high leverage is through proper money management. Typically, it is suggested that you never trade more than 1 to 5% of your account on any one trade. This is great advice because with this form of money management it would take hundreds of losses for you to wipe out your account but this also means that you need to properly use a stop loss to limit your losses. margin leverage

Beyond money management, you will need emotional management. You will lose trades and you will get angry. It is how you handle these times that will determine how well you will do and if your account will be destroyed. What most people do is they end up over trading, getting angry at the market to the point that they make illogical trades in an attempt to earn back the money they’ve lost. This is a big NO NO and you should stick to one trade size and have a daily loss limit that once hit you will stop trading for the day.

So, yes, leverage and margin are ways that you can trade more size, usually at a rate 1:50 or lower in Forex, meaning that you can trade a unit size 50 times your account size. That is the gift but the curse is that if you do not know what you are doing, if you do not use proper money management, if you do not have proper emotional discipline, then it is easy to get burned by using too much leverage.

So, use this article so that you do not experience too much of the curse and more of the gift of gift of leverage. We have provided you enough info to proper use it so have  a go at it now.