Risk Management

Trading Currencies Or Indices
Beginner

Trading Currencies Or Indices??

Over the years I have spent a lot of my time trading the Forex markets, until one day when a friend of mine introduced me to indices. What are indices you may ask?
Indices are a measurement of price of a group of shares that are bundled together in an exchange, i.e., the NASDAQ, S&P500 or the DAX.

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PIPS, Percentages, or Money
Beginner

PIPS, Percentages, or Money

Once your focus becomes process-orientated, you begin to seek percentage growth of your equity. At this point, you think more on the level of a hedge fund or bank. I say this because banks and hedge funds’ primary focus is percentage growth for themselves and their clients. They want to be able to tell their clients that they have 2x or 3x their initial investment.

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What Is A Risk To Reward Ratio?
Beginner

What Is A Risk To Reward Ratio?

A risk to reward ratio in Forex trading is how much you are betting compared to what you expect to make from any one particular trade. If there was one thing I wish I took the time to understand better when I started out on my trading journey, it would be the importance of a good risk to reward on every trade.

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Forex Base/Quote Currencies Explained
Beginner

Forex Base And Quote Currency Explained

In the fast-paced world of Forex trading, learning about Base and Quote currencies is not a bad place to start. For beginners looking to understand how the market works and what the instrument names actually mean, this is the article.

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How Forex Trading Spread Can Affect Your Trading
Beginner

How Spread Can Affect Your Forex Trading

Spread is present in Forex Trading just like it is in the business world.
When business owners sell a product to someone, they don’t do it at cost. They add a markup/margin AKA Spread so that they can make a profit off of the transaction.
This cost is what allows most brokers to make a profit and stay in business.

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How Much Should You Risk Per Trade
Beginner

How Much Should You Risk Per Trade?

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.

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5 Ways To Avoid Missing Trades In Forex
Beginner

5 Ways To Avoid Missing Trades In Forex

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.

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How Much Money Do You Need To Trade Forex
Beginner

How Much Money Do You Need To Trade Forex?

“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.

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Should You Use A Take Profit
Beginner

Should You Use A Take Profit?

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.

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