Forex Money Management

By: How To Become A Forex Trader.

You must have been hearing of money management in forex and you must have been told a number of times how very important it is to adopt a workable money management strategy in forex in order to be able to make good profit out of forex trading. If you are new to forex or you have been trading forex for quite a while now and will want to improve on your knowledge and expertise, this write up will open your eyes to a number of workable money management strategies in forex to ensure you do not exhaust your account too fast.

What is money management?

Money management is a series of processes put together to enable you manage your forex account and enable you make consistent profit at a rather steady state without making too many losses. If the truth must be told, money management places some restrictions on you and prevents you from taking certain trading decisions. While those missed trading opportunities may seem to be goldmine at the initial stage, they might make you lose your investment if you had taken them.

Have a plan and stick to it

One of the most important money management strategies to consider while trading forex involves making plans and sticking to those plans. Before you start trading, make up your mind regarding the number of times you want to trade each day, the particular period of time you want to trade as well as how much you want to make per day. Once you have made that particular amount initially decided on, you should exit the market without taking yourself through further risk of trading. If care is not taken, the next off-schedule trading move you make may lead to the loss of virtually all the money you have in your account.

 

Forex-Money-Management

 

Do not try to revenge

There are times your trading moves and decisions will not favor you. You might have predicted that the market would move in a particular direction only for it to move in the opposite direction. When this happens, some rookies may want to make effort to recover the money they lost due to the wrong trading decisions. If care is not taken, they may end up losing even more than they lost initially. You should never put yourself in this kind of situation. If a trading decision goes against you, do not try to take your revenge on the forex market in an effort to get your losses back; you will most probably incur more losses as a result. Once the market moves against you, it is better to exit the market and try again the next day after you must have taken time to assess what went wrong. This way, you can come back stronger and more enlightened than initial.

How much do you risk per trade?

You must not risk too much of your capital per trade. Some experts in forex trading suggest that it is not right to risk more than 1% of one’s trading account or equity. This means that if you make up to 10 different wrong trading decisions, you will still have up to 90% of your account intact. You may be able to make more profit when you risk higher percentage of your equity, but you will also make huge loss if you lose the high percentage you have risked. It is better to grow your account slowly and steadily instead of seeking to grow the account to 7 figures overnight because someone had hyped things up that you can become overnight billionaire in forex trading.

Never forget your take profit and stop loss

Some so called seasoned forex traders are of the opinion that it is not right to set stop loss when trading forex. They believe that the broker may manipulate the market and make it move in the direction of your stop loss, which will lead to loss in trading. This claim had not been verified by anyone. Stop loss is designed to help protect your profit while trading forex. It will also help protect your account and ensure your account is not wiped out in the event a trading move goes against you. Never forget to set your take profit and stop loss when you enter into trade; it is in your best interest.

Adjust your stop loss as the market progresses

If you are already cashing in on a trendy market, you should endeavor to adjust your stop loss in the direction of the trend to help protect the profit you have already made. This will help you to ride the trend for as long as possible, while not losing the profit you have already made.

Conclusion

You need to understand that the money management skill adopted by someone else may not work for you. It is in your best interest to develop a money management strategy that perfectly suits your style of trading. Keep in mind also that forex trading will not make you an overnight billionaire.

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Forex Scams Look out for Them

By: How To Become A Forex Trader.

Forex trading is a very popular money making means and it is being engaged by many out there today. Just like every other hot money making methods, forex trading has its own measure of scam activities. If care is not taken, you may fall victims to these scam activities in forex trading and lose your hard earned investment. This is why you must always seek information in forex trading to enable you identify scams when you see them and escape them without getting your fingers burnt. This write up is designed to open your eyes on the signs to watch out for regarding forex scams and how to avoid getting scammed. It promises to be highly informative.

Never believe if it looks too good

When you come by a forex trading strategy or system or forex trading information that looks too good to be true, you do not need any superhuman ability to know such information can only be false. If it sounds too good to be true, then it is most probably not true. If any particular website gives you promise of very big profit overnight, then the alarm bell in your brain should sound this out as a scam. The truth remains that forex trading is not as easy as many of these sites make it to look like; there is no easy walk to freedom when it comes to forex trading.

Take some time to investigate these get-rich-quick-in-forex sites and you will discover that they would only have some dollar bills blinking but no meaningful explanation on how to make huge profit. They usually come with flashy and extremely attractive graphics.

What does the general populace has to say

Before you believe anything any of these websites have to say about forex trading profit, ask other people around who also have ideas about forex trading. Does the outlet publicizing that particular forex trading strategy have their address listed on the forex material you are reading? If so, pick up the phone and give them a call. Use your discretion to assess their responses and determine if they are for real or they are trying to perpetrate forex scams. Talking with them will help you to determine if they can back up their products or not. Do not even do business with them if they do not have their brick and mortal office address listed on their sales page.

What does Google has to say?

Before you take their words for it, take some time to ask for Google’s opinion. A school of thought believes that “Google is your friend” and this seems to ring true even in today’s business clime. A simple Google search will protect you from falling into forex scams. Type the product name and add “scam” in front to find out if the product is a scam or not. If anyone had been scammed via this forex product, it will be shown by Google and this will protect you too from getting involved and getting scammed. If there are too many results pointing to this product as scam, then you should know that real people are getting scammed already by the same product.

There are times competitors seek to give other people’s products bad names by making up scam reports that are really none existent. This can be detected when you are making your search. If the number of scam reports coming up regarding this product is few, then it is possible competitors are responsible for such fake scam reports in an attempt to tarnish the image of the product. But this would not be the case if the number of scam reports is much.

Any presence on LinkedIn?

Before you take their words for it, take some time to check them out on LinkedIn. Many of the leading professionals have link on LinkedIn and the outlet selling this forex strategy or forex trading system should also have link on this social media site if they are truly the professionals they claim to be. If they are not found on LinkedIn, then you should be suspicious of their real intentions and your mind should go to forex scams. If they are true, then they should have built an audience over the years in forex trading and it should not be difficult to track them down in full representation of the top professional outlet they claim to be.

Watch out for the signal sellers

Do you want to hear the truth? Most signal sellers are pure scammers. So, watch out for them. They ask you to send in your money and they would trade on your behalf or send you signals and ask for money in return. Some of them may send you unprofitable signals, while others may even disappear into thin air after collecting your hard earned money. However, not all signal sellers are scammers, but most are. So, you should watch out. As hinted above, know their brick and mortal office address and verify such before you trust them with your money.

No get rich quick in forex trading

How else can you identify forex scams? Look out for those promising to make you rich via forex trading overnight. They claim their special never-seen-before trading system is 100% reliable. Never allow yourself to be carried away by this. The truth is no forex trading system can ever give you 100% return on investment. Every forex trading system has its down time. The forex market is ever dynamic and ever unstable. This makes it rather impossible for any forex trading system to give 100% positive outcome all the time.

Watch out for scamming brokers

Some brokers are scammers, pure and simple. All they are interested in is fleecing you. They would allow you to open account with them, trade and make profit, but they will not allow you to make your withdrawals. They would also tell you their terms and conditions are subject to change anytime without prior notice. So, watch out for them to safeguard your hard earned money. Find out also if their trading station is operating to your liquidity expectation. Do not be taken in by too many promotional materials and promises of high level performance; they are mostly signs of scam.
 
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Forex Scams Look out for Them

How to Trade Forex for Beginners

By: How To Become A Forex Trader.

Six  Key Factors

Forex trading is undoubtedly profitable and it can become your only source of consistent income. You can make it big in forex trading if you do things right. Yes, there are some things you must keep close to your heart when trading forex in order to make good profit out of the endeavor. In the same vein, there are some things you must run away from if you are not to make loses one after the other. Do you plan to go into forex trading as a beginner? Some of the important things you must do and keep in mind will be made known below.

Start out by defining your goal

Before you ever venture into forex trading as a beginner, you must first define your goals. What exactly do you want to achieve in forex trading? What is your desired profit margin? What is your desired style of trading? Do you plan to trade in the morning or you prefer to trade at night? Do you prefer to ride the market for long or you prefer to trade as a scalper? These are some of the very important things you must plan out before you ever venture into forex trading. You also want to find out about your personality. If the truth must be told, some personalities are not best for forex trading. You must first determine if your personality can withstand the mental and psychological pressures of forex trading, then you can go into it.

Who is your forex broker?

In order to succeed in forex trading as a beginner, you need to work with a good and reliable forex broker. If the truth must be told, the broker contributes a great deal to how successful your trading endeavor ends up. Never work with any forex broker if you do not feel comfortable with their terms and conditions and never open account with any of them if you have not taken time to read through their terms and conditions. If there is any uncomfortable item there, it is in your best interest to look around for another broker with better terms and conditions that you are comfortable with. Different forex brokers offer different kinds of trading platforms. Go only for those among them that are offering trading platforms that perfectly suit whatever your trading style is.

What method do you want to apply?

Before you start off on forex trading as a beginner, you must first take time to choose your trading method of trading strategy. First decide what your trading strategy should be. What method do you want to adopt? You must make up your mind if you want to make use of technical analysis or fundamental analysis for trading or you want to use a combination of the two. It is not enough to choose a particular trading pattern; you must also stay glued to that pattern. This will help you to develop further and make the most of your chosen trading pattern.

 

How to Trade Forex for Beginners

 

How to time your trade

You need to be methodical about everything you do in forex trading in order to get the best out of your trading endeavor. Firstly, you need to time your entry and exit very properly so as not to miss out on great profiting opportunity or make loses where you would have made loses. How can you do this? The best method to adopt involves using one of the shorter time frames for timing your exit and entry. Additionally, make use of the longer time frames to get the right direction of the market at any particular time. You must not add too many technical indicators to the chart so as not to get confused. When starting forex trading as a beginner, choose only one or two technical indicators to read the chart. You can increase the number of indicators you use as you progress and improve in your understanding of the forex market.

What do you expect from forex trading?

Before you even start trading forex trading as a beginner, you should first determine what your expectations are and work towards it. What is meant by expectation here is your financial reward for trading. If the truth must be told, you may not be able to meet up with that expectation the first few days in forex trading. But you will soon be able to meet up and even surpass that expectation as you improve in your trading. All you need are consistency and persistence and you will be there in no time.

Loses will come at times

If the truth must be told, no one can ever claim to have made no loses in forex trading. You must always keep this in mind that loses will come. When it comes, be ready to embrace it and move on. Each time you lose, take some time to find out what could have been responsible for the loss. This will help you to improve on your trading method next time for better profitability. When starting forex trading as a beginner, never allow anyone to stuff you with the wrong idea that you will never make loses. Of course you will make loses, but you must not let that fact weigh you down.

No Holy Grail trading method anywhere

One other thing that can easily deceive you when starting forex trading as a beginner is promise of unending profiting. The so-called forex gurus would tell you all sort of stories about the trading strategy they want to sell to you, calling it the perfect forex profit system. They would say the system had never made any loses before, only gains. Never believe them. There is no such perfect trading system anywhere that can give you only profit and no loses. You need to keep this close to your heart before you ever venture into forex trading. It will help to disabuse your mind about forex trading and will help wake you up to some of the unavoidable realities of forex trading.

One last message you must take home is that you must continue to learn in order to make something really tangible out of forex trading.

 

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