There are many skills required to be a trader, and to be honest, the mastery of these skills sets the phenomenal traders from the average traders in the world. Whether the best traders are trading for institutions or themselves – that doesn’t matter.
Risk per trade is a percentage of total capital allocated to a position.
Maximizing returns while limiting risk is one of the many challenges we face as traders. Risk too much, and you could face a massive drawdown or blow your account. Risk too little, and your returns will disappoint.
When I began trading, I thought that news events controlled the markets. No matter what I did, I could not control my fate when it came to news events and how they played out. I remember early on in my trading journey trying to trade all the news events as if I would make billions of dollars from predicting the outcomes. As if!
Missing trades in Forex can be challenging. Always leaves a bitter taste, especially when you are starting out. It’s most frustrating because after having missed a trade, you automatically think of what your account balance “could’ve been,” and it’s always a shame to look at your current account balance after that.
The age-old debate. New Forex traders might come across this debate and be curious about the difference between these two approaches. Should they use Forex indicators? Or just trade using Price action? This is what that article is going to answer for you.
“I want to start trading Forex, but how much money do I need to start?”. Most people who want to become traders don’t have a million dollars to throw in the market.
For some reason, many people believe the notion that you need huge amounts of capital to trade, and this thinking stops them from ever starting. The truth is that you don’t need a lot of money at all.
I almost blew a $50,000 trading account myself.
Now you’re probably thinking, “Man, there is so much I could have done with that money,” and this true! You probably could have bought yourself a nice car and put a down payment on a home; I know you could buy a home in South Africa. This $50,000 trading account was essential; I needed to build this account…
Take profits allow us traders to automatically close out winning trades before the market turns against our positions.
Sometimes these orders can save us from the heartbreak of leaving money on the table, but that does not mean using take profits is the best option for long-term profitability.
Forex Trading is a numbers game. Do you have more 1’s than 0’s? Losses are a normal part of trading, and the sooner you understand that the sooner you will be affected less by them and finally learn to MANAGE them. Not AVOID them. There’s a difference.
The descending triangle is a pattern that shows a continuation in trend with price approaching a support level, creating lower highs showing aggressive bearish momentum. The ascending triangle is a triangle with a roof acting as resistance in a bullish market that shows some form of consolidation.