.WHEN IDEAS MAKE MONEY .LICENSE NO:BN2079926 .SINCE 2007
Friday, January 8, 2010
DAILY FOREX TREND ANALYSIS
Trading pairs (GBP/USD, AUD/USD,EUR/USD)
Today we are expecting a major FA release we know FA's like NFP creates larger moves in all USD pairs so i will advice no position should be open before this FA is released.
LONGTERM TREND:
GBP/USD: Trend =DOWN
AUD/USD: Trend=NEUTRAL
EUR/USD: Trend=DOWN
DAY TRADING TREND
GBP/USD: Trend=DOWN
AUD/USD:Trend=DOWN
EUR/USD:Trend=DOWN
To effectively use these trend pick only sell entries on these pairs and ignore all buy entries
Today we are expecting a major FA release we know FA's like NFP creates larger moves in all USD pairs so i will advice no position should be open before this FA is released.
LONGTERM TREND:
GBP/USD: Trend =DOWN
AUD/USD: Trend=NEUTRAL
EUR/USD: Trend=DOWN
DAY TRADING TREND
GBP/USD: Trend=DOWN
AUD/USD:Trend=DOWN
EUR/USD:Trend=DOWN
To effectively use these trend pick only sell entries on these pairs and ignore all buy entries
FOREX TRADING
Forex trading is a very lucrative business yet so many fail at it. Before you make up your mind to start a career in forex trading you have to get the basic education, tool and some experience. Someone cannot do the work of an engineer except he or she gets a degree to back him up, someone cannot fly a plane except he goes to a pilot school, the same applies to forex trading you cannot wake up oneday and start trading forex, you have to learn the basics of forex, I will highlight some techniques of forex trading here on this blog that will help novice traders as well as professionals improve in their trades
RISK MANAGMENT
RISK MANAGEMENT:
The term “risk management” is your ability to manage your profits and possible losses, in forex business losses are inevitable so also it is in every other business you may want to venture into. Assume you want to work for a bank, there the risk that one day you may be fired so you have to make provision for that, tomatoes seller in the market also has some element of risk in her tomatoes sales, what if something happens to the basket of tomatoes as she prepares to make sales, so every aspect of life carries its own risk, What differentiates you from others is your personal ability to control and manage the extent of damage you may incur from the process of taking the risk.
Now let us go straight to our main area of concentration in terms of risk management..what most newbie don’t know in forex is the ability to manage every dollar they have in their trading account, some set stop loss level just for setting sake without understanding why they should set stop loss and how they should do it, some don’t even set at all they believe in prediction believing the market will always retrace in their direction as if they are the one in control of the market. Such people end up losing their money in a very short time and as such become more eager and aggressive to recoup back their lost money only to end up losing more giving their hard earned money to professional traders.
You must not wait to have millions of dollars in your trading account before trying to manage it well I tell you if you cannot succeed in managing $100 you cannot also manage $1,000,000 if it was given to you to trade. Now let us assume you have $5000 trading account size ok and you decided to risk 5% per trade 20losing trades will wipe away your capital, 10% only 10 losing trades will wipe away your account. Now the question is what must I do to make lasting profits in the forex business?
For any amount or account size you have never risk more than 1% per position, you may want to ask me but how will I make money with just 1% assuming I have just $100 as my trading capital, how can I set my stop loss level to match this account size. The reason why I went this low is because so many people think they cannot properly manage this small amount so when they lose it might mean nothing to them this is totally wrong.
Any amount ranging from $4999-$100 should be traded in the micro account don’t go near standard account now let work with $100. In micro account (like my broker fxopen) they convert the money to cent so with $100 you will have a trading account size of $10,000 cent which is equivalent to $100
Now you have an imaginary $10,000 account size, 1% of this amount is 100cents which is $1. If your stop loss is 50pips then your lot size should be 100cents/50pips=2.0 this lot size is approximately $0.02 which is just 2cents having done this you look for good signals and place your trade with your stop loss set. And forget the trade by so doing you letting the market do it best and not sit in front of your computer in panic. Even if you get stopped out in a loss you will only lose just $1 out of your $100 you still have $99 to trade and it will be very hard for you to lose your $100 to the market. At the end of the month you calculate your total profit and calculate your 1% risk again so by the time you do this over and over again for a period of 3months or so depending on your trading system you will be amazed how much you have made consistently by properly managing your money so when you are successful with your $100 even if they give one billion to manage you can manage it well and give a superior and consistent return overtime. Now here is the other side of risk management. Some fellow traders either heard in deceptive advert on radio or television that they can make millions from forex with just $100 or so they go straight to standard account with the fear not to lose money they will not set stop loss only to end up blowing out the money that same trading day. Assume you were to trade $100 in a standard account with 50pips stop loss just two trades will end your career so which will you prefer?
The same thing happens to whatever amount you may have. When you trading capital hits $5000 and above you can go to standard account then you can properly manage your money following the 1% rule. I risk just 1% yet I get consistent 400% return per annum which stock exchange or other investment can give that?
So it is up to you to be wise and play the game as a professional career not as a gamble. I like to see fellow traders make money and not lose money what I experienced in my early days of trading career I don’t like seeing people experiencing it. One more thing run away from any robot or ATS ( automatic trading system) they suck learn the principles of trading yourself you will be glad you did when the good result start coming in, work towards developing your own trading system and stop relying on other people’s forecast they will not help you grow.
To our trading success
FxJones Investments co., ltd
The term “risk management” is your ability to manage your profits and possible losses, in forex business losses are inevitable so also it is in every other business you may want to venture into. Assume you want to work for a bank, there the risk that one day you may be fired so you have to make provision for that, tomatoes seller in the market also has some element of risk in her tomatoes sales, what if something happens to the basket of tomatoes as she prepares to make sales, so every aspect of life carries its own risk, What differentiates you from others is your personal ability to control and manage the extent of damage you may incur from the process of taking the risk.
Now let us go straight to our main area of concentration in terms of risk management..what most newbie don’t know in forex is the ability to manage every dollar they have in their trading account, some set stop loss level just for setting sake without understanding why they should set stop loss and how they should do it, some don’t even set at all they believe in prediction believing the market will always retrace in their direction as if they are the one in control of the market. Such people end up losing their money in a very short time and as such become more eager and aggressive to recoup back their lost money only to end up losing more giving their hard earned money to professional traders.
You must not wait to have millions of dollars in your trading account before trying to manage it well I tell you if you cannot succeed in managing $100 you cannot also manage $1,000,000 if it was given to you to trade. Now let us assume you have $5000 trading account size ok and you decided to risk 5% per trade 20losing trades will wipe away your capital, 10% only 10 losing trades will wipe away your account. Now the question is what must I do to make lasting profits in the forex business?
For any amount or account size you have never risk more than 1% per position, you may want to ask me but how will I make money with just 1% assuming I have just $100 as my trading capital, how can I set my stop loss level to match this account size. The reason why I went this low is because so many people think they cannot properly manage this small amount so when they lose it might mean nothing to them this is totally wrong.
Any amount ranging from $4999-$100 should be traded in the micro account don’t go near standard account now let work with $100. In micro account (like my broker fxopen) they convert the money to cent so with $100 you will have a trading account size of $10,000 cent which is equivalent to $100
Now you have an imaginary $10,000 account size, 1% of this amount is 100cents which is $1. If your stop loss is 50pips then your lot size should be 100cents/50pips=2.0 this lot size is approximately $0.02 which is just 2cents having done this you look for good signals and place your trade with your stop loss set. And forget the trade by so doing you letting the market do it best and not sit in front of your computer in panic. Even if you get stopped out in a loss you will only lose just $1 out of your $100 you still have $99 to trade and it will be very hard for you to lose your $100 to the market. At the end of the month you calculate your total profit and calculate your 1% risk again so by the time you do this over and over again for a period of 3months or so depending on your trading system you will be amazed how much you have made consistently by properly managing your money so when you are successful with your $100 even if they give one billion to manage you can manage it well and give a superior and consistent return overtime. Now here is the other side of risk management. Some fellow traders either heard in deceptive advert on radio or television that they can make millions from forex with just $100 or so they go straight to standard account with the fear not to lose money they will not set stop loss only to end up blowing out the money that same trading day. Assume you were to trade $100 in a standard account with 50pips stop loss just two trades will end your career so which will you prefer?
The same thing happens to whatever amount you may have. When you trading capital hits $5000 and above you can go to standard account then you can properly manage your money following the 1% rule. I risk just 1% yet I get consistent 400% return per annum which stock exchange or other investment can give that?
So it is up to you to be wise and play the game as a professional career not as a gamble. I like to see fellow traders make money and not lose money what I experienced in my early days of trading career I don’t like seeing people experiencing it. One more thing run away from any robot or ATS ( automatic trading system) they suck learn the principles of trading yourself you will be glad you did when the good result start coming in, work towards developing your own trading system and stop relying on other people’s forecast they will not help you grow.
To our trading success
FxJones Investments co., ltd
Subscribe to:
Posts (Atom)