Online Forex
Available For All Levels of Investors
Money Management
Forex Money Management – How Not to Lose Your Shirt?
Feb 24th
NonDirectionTrading.com – FromTimothy Stevens – The Forex Options Guy who provide valuable Forex Options Training. I will like to offer you a Free “Getting Started Trading FOREX with Options” course when you subscribe to my newsletter on Non Direction Trading. You will get your instant access at http
The Forex Trading maximum Lot technique
Feb 10th
The forex trading maximum lot technique is ideal for use by beginners as well as experieced forex traders. Currency traders are always looking for ways in which they can protect their trading capital or trading account and yet give themselves an opportunity to double their account in only… … forex “forex alerts” “forex signals” “forex money management” “forex trading system” “forex risk” “forex success”
Why Money Management is Important in Trading
Jan 27th
Stocks, Forex, Futures, Options, Commodities or whatever you trade. A Successful trading consists of three factors as follows:
Psychology for 50% Money Management for 30% Market Analysis and Trading Systems for 20%
For many traders, they spend most of their time looking for good trades and only focus on the last factor, Market Analysis and Trading Systems, which is the least influence on successful trading.
Once traders enter a trade, they rely on their emotions to make their decisions and miss the essential element of winning, the management of their emotions. Their lacking of managing themselves leads to poor managing of money of their trading portfolios.
That’s why most traders are failure.
Without a method of managing your money, even the best trading system or strategy is absolutely worthless. The 100%-win system does not exist, therefore the strict rules to manage money will provide a safety net for traders.
That’s why the money management is so important in trading.
The major goals of money management rule are:
Ensuring survival in markets – No one never fails, so traders have to stay in markets long enough to win Earning steady rate of return from the trades – the volatility of earning rate from each trade should be low Earning high return from the trades – traders are able to get high returns with no risks or lower risks if they manage their money well
Lastly, A most importance rule of managing your trading money is Do not change money management rule while the opened position is not yet closed.
By: Hideyoshi Taro
Psychology for 50% Money Management for 30% Market Analysis and Trading Systems for 20%
For many traders, they spend most of their time looking for good trades and only focus on the last factor, Market Analysis and Trading Systems, which is the least influence on successful trading.
Once traders enter a trade, they rely on their emotions to make their decisions and miss the essential element of winning, the management of their emotions. Their lacking of managing themselves leads to poor managing of money of their trading portfolios.
That’s why most traders are failure.
Without a method of managing your money, even the best trading system or strategy is absolutely worthless. The 100%-win system does not exist, therefore the strict rules to manage money will provide a safety net for traders.
That’s why the money management is so important in trading.
The major goals of money management rule are:
Ensuring survival in markets – No one never fails, so traders have to stay in markets long enough to win Earning steady rate of return from the trades – the volatility of earning rate from each trade should be low Earning high return from the trades – traders are able to get high returns with no risks or lower risks if they manage their money well
Lastly, A most importance rule of managing your trading money is Do not change money management rule while the opened position is not yet closed.
By: Hideyoshi Taro
Money Management – A Forex Trader Must Have!
Jan 23rd
Money Management – what’s that? If this is your response to the title of this article, then either STOP trading forex until you have learnt about it or, if you are new, do not start yet! The chances are, if you trade without any Money Management rules, you will lose your capital investment faster than the time it takes to read this article!
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a ‘blown account’ in no time at all….
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules… ‘Speed up the path to the intended destination’ will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules)……. Brilliant! I’m sure this is the type of risk these successful guys take every now and again… After all, you have to take bigger risks sometimes if you want to ‘make it’! Well, I’m pretty sure I don’t have to tell you what happened next…!!
So,… here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the ‘full hit’ of it reaching my pre-determined Stop Loss!
Yep! You’ve probably got the next bit too! The trade didn’t make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a ‘calculated’ attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day…
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn’t all that followed! Through just that one act, I lost all sense of discipline, and also didn’t follow my trade strategy. By exiting early, I hadn’t given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I’m telling you here is,… if you allow just one area of your trading to ‘relax’ against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely ‘need’ to break other rules too.
I would ask you to think about this….Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan – and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour …
Remember that..
By: Martin Hayne
Forex is a leveraged product, and if you over-leverage yourself, the truth is you could be staring at a ‘blown account’ in no time at all….
Therefore, it should go without saying that disciplined Money Management is an important key to not just succeeding, but surviving in Forex trading. Sadly, the temptation of riches can wreak havoc with even the most disciplined people out there! In fact, the determination to succeed and be wealthy may just be the one thing that causes a person to relax their own Money Management rules… ‘Speed up the path to the intended destination’ will be the justification in their mind!
I know it, because I personally fell foul of just that! So certain that the trade I was going to put on could go in only one direction, I calculated that if I increased my trade size for this particular trade, I could then go on and move up legitimately to a larger trade size for all future trades (by legitimately, I mean according to my Money Management rules)……. Brilliant! I’m sure this is the type of risk these successful guys take every now and again… After all, you have to take bigger risks sometimes if you want to ‘make it’! Well, I’m pretty sure I don’t have to tell you what happened next…!!
So,… here I was, now in a position where I now had to decrease the size of my future trades, to account for the huge hit I had just taken on that one trade. And not only that, to make matters worse, I exited the trade early because I did not want to take the ‘full hit’ of it reaching my pre-determined Stop Loss!
Yep! You’ve probably got the next bit too! The trade didn’t make it to my intended Stop Loss, and actually would have been a successful trade if I had followed the rules of my strategy! I had just gone down the ladder several rungs in a ‘calculated’ attempt to move myself up a few rungs. It would now take several weeks of SUCCESSFUL trading to get back to the trade size I had been taking that day…
So, the first thing I did that day to cause such a hole in my account was throw away my Money Management rules. However, that wasn’t all that followed! Through just that one act, I lost all sense of discipline, and also didn’t follow my trade strategy. By exiting early, I hadn’t given the trade a chance to succeed according to my entry and exit rules for that trade. Now, had I adhered to my money management rules, and applied my normal trade size, I would not have been concerned by the trade potentially hitting my Stop Loss, and therefore would have remained in the trade, and been in a position to record a successful outcome, and not a rather large losing one!
I tell this story not for entertainment value, but to share a lesson on how disciplined you have to be at all times in Forex Trading. My discipline here had succumbed to the emotions of greed and fear, and I paid dearly for it. What I’m telling you here is,… if you allow just one area of your trading to ‘relax’ against your predetermined Trading Rules, no matter how valid you think your reasons are, there is a very high probability you will pay the price. You will likely ‘need’ to break other rules too.
I would ask you to think about this….Your Trading Plan will have been created while in an environment of calm and rational thinking, based on information, knowledge and facts. When you are trading Forex, the environment is neither calm nor rational, and the only thing that can keep you trading calmly and rationally, is to be disciplined enough to follow the rules of your Trading Plan – and in that, Money Management will be clearly defined.
Your adherence to your Money Management rules, and the power of compounding will help move the odds of reaching your trading goals in your favour …
Remember that..
By: Martin Hayne
Money Management Tool
Jan 20th
Awesome tool to help with position sizing … Forex Money Management tool
FOREX Money Management Tips
Jan 19th
Whether you are a seasoned trader or new to FOREX, without a good money management it will be hard to ever make a dime. Good money management will be out a great trading system any day. Without knowing how to keep losses to a minimum will only jeopardize you’re trading efforts even if you have more winning trades than losing trades.
One of the worst mistakes traders make is trading without sufficient capital. This does not mean a trader has to have a lot of money to trade with, but enough to handle the movement in the market. The trader with limited capital will always be a worried trading looking to minimize losses beyond the point of realistic trading.
A good rule to follow is never risk more than 2% to 5% of your FOREX trading capital. Too many traders open mini accounts and begin trading heavily and end up margining out their accounts in a few months, if not a few weeks. Fore example, if a trader opened a mini account for $5,000, they should never trade more than $1 per pip. This way if a trade goes bad, the trader suffers a minimal loss.
Exercising discipline and following a specific trading plan is one of the most important aspects in FOREX trading. Discipline is also the ability to continue to trade your system even after you have suffered a loss. Emotional and revenge trading can easily wipe out entire accounts. Sometimes it’s good practice to ignore the dollar amount in a FOREX account and interpret the number of trades in pips only.
Think backwards when trading the FOREX market. Instead of trying to make money learn how to protect what you already have. If in the event that a trade does not develop in a reasonable amount of time or the market begins to form an opposite setup, you should employ the strategy of cutting your losses short to protect and preserve your capital.
Always use a stop-loss when trading. This will stop your position when the market moves too far against your position. Save your money to trade another day or on another trading setup. Too often traders are convinced of where they believe the market is going and lose their sense of reality and begin to trade on hope. They remove their stop-loss and hope the market will turn around, only to lose more money.
Trade light and never risk too much per trade. When in doubt of a trade, stay out of the market and wait for the trade to come to you. Use a system and follow the system without breaking the rules. Traders who are consistent and follow a definite plan are the ones that make money in the FOREX.
By: Timothy Rohrer
One of the worst mistakes traders make is trading without sufficient capital. This does not mean a trader has to have a lot of money to trade with, but enough to handle the movement in the market. The trader with limited capital will always be a worried trading looking to minimize losses beyond the point of realistic trading.
A good rule to follow is never risk more than 2% to 5% of your FOREX trading capital. Too many traders open mini accounts and begin trading heavily and end up margining out their accounts in a few months, if not a few weeks. Fore example, if a trader opened a mini account for $5,000, they should never trade more than $1 per pip. This way if a trade goes bad, the trader suffers a minimal loss.
Exercising discipline and following a specific trading plan is one of the most important aspects in FOREX trading. Discipline is also the ability to continue to trade your system even after you have suffered a loss. Emotional and revenge trading can easily wipe out entire accounts. Sometimes it’s good practice to ignore the dollar amount in a FOREX account and interpret the number of trades in pips only.
Think backwards when trading the FOREX market. Instead of trying to make money learn how to protect what you already have. If in the event that a trade does not develop in a reasonable amount of time or the market begins to form an opposite setup, you should employ the strategy of cutting your losses short to protect and preserve your capital.
Always use a stop-loss when trading. This will stop your position when the market moves too far against your position. Save your money to trade another day or on another trading setup. Too often traders are convinced of where they believe the market is going and lose their sense of reality and begin to trade on hope. They remove their stop-loss and hope the market will turn around, only to lose more money.
Trade light and never risk too much per trade. When in doubt of a trade, stay out of the market and wait for the trade to come to you. Use a system and follow the system without breaking the rules. Traders who are consistent and follow a definite plan are the ones that make money in the FOREX.
By: Timothy Rohrer
FOREX
Jan 17th
Apakah hukum FOREX(Foreign Exchange) atau pertukaran matawang asing? Dengarkan penjelasan Ust Zaharuddin Abd Rahman … Ust Zaharuddin Abd Rahman
Forex Money Management – Incorporating the 80-20 Rule For Triple Digit Gains
Jan 13th
Forex money management is the hardest part of forex trading and most traders simply make errors that doom them to failure. Here we will look at how understanding the 80 / 20 rule and using it in your trading system can make you bigger profits with less risk…
The 80 / 20 rule is simple and states:
That a small number of causes (20%) is responsible for a large percentage (80%) of the effect. The principle was named after the Italian economist Vilfredo Pareto, who noted that 80% of income in Italy was received by just 20% of the population. The value of the Pareto Principle in life and forex trading is – it tells you to focus on the 20 percent of your trading that really matters.
Most traders simply trade too much and the 20% that matters are really just the high odds trades – get rid of the marginal and low odds trades and trade high odds set ups only.
The fact is many traders think the more they trade the better and the more chance they have of enjoying currency trading success. Most try trading the market noise and try forex day trading or scalping – but they are doomed to failure and get wiped out. Trading profits are not correlated to how often you trade, as you are only judged on being right with your trading signal.
If you trade 100 times or twice all that matters is the amount of money you put in the bank from your market timing.
I know traders who trade just a few times a year and make somewhere between 100 – 200% just simply because they wait for high odds trades, hit them and hold them.
Trading less, is more time efficient and more profitable.
Look at any new traders account and they will be over trading and if you make the mistake of taking marginal trades you will lose.
Money management is all about protecting the account equity you a have and if you focus on high odds set ups only, you are going to increase your profit potential overall.
The 80 / 20 rule works in forex trading just as it does in all areas of life and if you use it in forex trading you will focusing on making money and that at the end of the day, is what forex trading is all about.
So think about it, apply it, watch your profits soar and your account equity risk decline and get on the road to currency trading success.
By: Kelly Price
The 80 / 20 rule is simple and states:
That a small number of causes (20%) is responsible for a large percentage (80%) of the effect. The principle was named after the Italian economist Vilfredo Pareto, who noted that 80% of income in Italy was received by just 20% of the population. The value of the Pareto Principle in life and forex trading is – it tells you to focus on the 20 percent of your trading that really matters.
Most traders simply trade too much and the 20% that matters are really just the high odds trades – get rid of the marginal and low odds trades and trade high odds set ups only.
The fact is many traders think the more they trade the better and the more chance they have of enjoying currency trading success. Most try trading the market noise and try forex day trading or scalping – but they are doomed to failure and get wiped out. Trading profits are not correlated to how often you trade, as you are only judged on being right with your trading signal.
If you trade 100 times or twice all that matters is the amount of money you put in the bank from your market timing.
I know traders who trade just a few times a year and make somewhere between 100 – 200% just simply because they wait for high odds trades, hit them and hold them.
Trading less, is more time efficient and more profitable.
Look at any new traders account and they will be over trading and if you make the mistake of taking marginal trades you will lose.
Money management is all about protecting the account equity you a have and if you focus on high odds set ups only, you are going to increase your profit potential overall.
The 80 / 20 rule works in forex trading just as it does in all areas of life and if you use it in forex trading you will focusing on making money and that at the end of the day, is what forex trading is all about.
So think about it, apply it, watch your profits soar and your account equity risk decline and get on the road to currency trading success.
By: Kelly Price
Forex Autopilot System Robot – Bringing Back the 70’s
Jan 6th
Many who attempt to trade currencies on their own never realize that they were scalped by someone using a forex autopilot system robot. Currency trading is ordinarily characterized by complicated technical analysis. The variables to ponder often can seem infinite. A single human mind is only capable of so many calculations per second and can not compete against today’s cutting edge software.
Brute force calculating ability is not the only advantage of software and computer based trading. A forex autopilot allows for the removal of your emotions from the trading formula. Oftentimes, a great strategy proves moot when the trader deviates from it due to sudden hunches. In some instances fear tends to inhibit purchases at the most opportune time. In others, greed prevents taking a profit when all the objective signals dictate that a sell is in order.
Robotic trading prevents these emotions from foiling a good strategy. It enforces discipline disallowing deviation from the core strategy. Many traders end up thanking their robot profusely for preventing an emotional driven error. A strategy is only as good as your ability to execute it and to identify when the brief window for execution arises. A forex autopilot addresses both of these facets with its discipline and speed of calculation and execution.
Another arena in which a forex autopilot proves beneficial is money management. Whereas your trade strategy relates to which currency you buy or sell, your money management thresholds dictate how much you can risk on that given trade. Many seasoned professionals suggest that you risk no more than three percent of your portfolio on any one trade.
Effective money management allows you to stay in the game even after a few trades go against you. A smart trader knows this is always possible for any given group of trades. However, they are confident that their strategy will prove profitable over the long run. Effective money management allows for your strategy to prove itself over the long haul and prevents your account from blowing up after one poorly timed trade.
Humans are prone to exuberance and when an especially appealing trade arises they are tempted to deviate from their risk management parameters. A forex autopilot disallows that. It takes control and ensures your money management policies are enforced sometimes in essence saving you from yourself. A robot knows no greed nor does it experience any fear. Elimination of these emotions helps you to both adhere to your risk management thresholds as well as stick to your core trading strategies.
The forex markets are located throughout the world allowing for a wide range of potential trading hours. Many who trade forex are able to enjoy a lifestyle where they are able to select their own work hours whether it be early in the morning or late at night. This flexibility often proves family friendly and a sense of personal freedom. Forex often proves very attractive to those unable to conform to the typical nine to five regimen.
A forex autopilot system robot can be your secret weapon when it comes to combat in the currency trading arena. Some choose to trade on their own whims and arbitrary hunches. Others use science and technology to address the seemingly chaotic markets. The results often speak for themselves.
By: Bill Gatton
Brute force calculating ability is not the only advantage of software and computer based trading. A forex autopilot allows for the removal of your emotions from the trading formula. Oftentimes, a great strategy proves moot when the trader deviates from it due to sudden hunches. In some instances fear tends to inhibit purchases at the most opportune time. In others, greed prevents taking a profit when all the objective signals dictate that a sell is in order.
Robotic trading prevents these emotions from foiling a good strategy. It enforces discipline disallowing deviation from the core strategy. Many traders end up thanking their robot profusely for preventing an emotional driven error. A strategy is only as good as your ability to execute it and to identify when the brief window for execution arises. A forex autopilot addresses both of these facets with its discipline and speed of calculation and execution.
Another arena in which a forex autopilot proves beneficial is money management. Whereas your trade strategy relates to which currency you buy or sell, your money management thresholds dictate how much you can risk on that given trade. Many seasoned professionals suggest that you risk no more than three percent of your portfolio on any one trade.
Effective money management allows you to stay in the game even after a few trades go against you. A smart trader knows this is always possible for any given group of trades. However, they are confident that their strategy will prove profitable over the long run. Effective money management allows for your strategy to prove itself over the long haul and prevents your account from blowing up after one poorly timed trade.
Humans are prone to exuberance and when an especially appealing trade arises they are tempted to deviate from their risk management parameters. A forex autopilot disallows that. It takes control and ensures your money management policies are enforced sometimes in essence saving you from yourself. A robot knows no greed nor does it experience any fear. Elimination of these emotions helps you to both adhere to your risk management thresholds as well as stick to your core trading strategies.
The forex markets are located throughout the world allowing for a wide range of potential trading hours. Many who trade forex are able to enjoy a lifestyle where they are able to select their own work hours whether it be early in the morning or late at night. This flexibility often proves family friendly and a sense of personal freedom. Forex often proves very attractive to those unable to conform to the typical nine to five regimen.
A forex autopilot system robot can be your secret weapon when it comes to combat in the currency trading arena. Some choose to trade on their own whims and arbitrary hunches. Others use science and technology to address the seemingly chaotic markets. The results often speak for themselves.
By: Bill Gatton
Making Money Online Using Forex Autopilot That Trades With Money Management Program
Dec 27th
Wise investors use a system to learn when to buy or sell and the amount of money at risk at any particular time. This is their money management program. An electronic, automated Forex trading system is an ideal money management program for anyone involved with the Forex marketplace.
Many have their doubts about the usefulness of an automated Forex trading system. A common misconception about these programs is that they simply aim to time the market (which of course one of the first “thou shalt nots” of investing). Savvy Forex traders know that automated Forex trading software is much more complex and has many more capabilities than this – these systems can be set to trade based on their specific criteria; no market timing needs to be involved. These systems can use real time information in conjunction with mathematical modeling and algorithms which decide when to place buy, sell or stop loss orders for the investor.
Since the Forex markets are open almost 24-7 due to the fact that there is nearly always a currency market open somewhere in the world at any given time, there’s no need for “market timing” attempts; and at the same time, an automated Forex trading system acting as one’s money management program can be ideal, since software never needs to sleep.
Some people who aren’t all that savvy about investing may wonder why anyone would need any kind of money management program, though. Many of these people have heard that investing is all a gamble, little better than just going to the casino; so, they reason, why would anyone put a program in place when it’s not going to make any difference?
This line of thinking is wrong when you know how to manage money and your activity in the marketplace. There is a great amount of short term uncertainty in the marketplace on an hourly and daily basis. You will begin to notice patterns when you step back a bit and look on from an all encompassing long distance perspective. Forex automated trading systems analyze asset trading charts by taking these patterns into consideration. It is possible to do far more than gamble in any investment market including the Forex while using tried and true mathematical algorithms and historical perspectives.
Speaking of gambling, there are various professional gamblers who are multimillionaires. No one can be that lucky, although ambiguity and luck do have their own roles, however these professionals do know how to see the hidden patterns and then take their calculated risks with informed anticipations. Their essential long-term gains absorb their short term losses.
Forex trading should also be approached in a systematic manner; this is the way to make a success of your trades. Just ask those who have been successful in the Forex market; they didn’t guess their way to wealth, they used a system.
By using the market trends to your advantage and implementing a well designed money management program, in this case an automated Forex trading system, a lot of profit can be made in the Forex market.
By: Richard U. Olson
Many have their doubts about the usefulness of an automated Forex trading system. A common misconception about these programs is that they simply aim to time the market (which of course one of the first “thou shalt nots” of investing). Savvy Forex traders know that automated Forex trading software is much more complex and has many more capabilities than this – these systems can be set to trade based on their specific criteria; no market timing needs to be involved. These systems can use real time information in conjunction with mathematical modeling and algorithms which decide when to place buy, sell or stop loss orders for the investor.
Since the Forex markets are open almost 24-7 due to the fact that there is nearly always a currency market open somewhere in the world at any given time, there’s no need for “market timing” attempts; and at the same time, an automated Forex trading system acting as one’s money management program can be ideal, since software never needs to sleep.
Some people who aren’t all that savvy about investing may wonder why anyone would need any kind of money management program, though. Many of these people have heard that investing is all a gamble, little better than just going to the casino; so, they reason, why would anyone put a program in place when it’s not going to make any difference?
This line of thinking is wrong when you know how to manage money and your activity in the marketplace. There is a great amount of short term uncertainty in the marketplace on an hourly and daily basis. You will begin to notice patterns when you step back a bit and look on from an all encompassing long distance perspective. Forex automated trading systems analyze asset trading charts by taking these patterns into consideration. It is possible to do far more than gamble in any investment market including the Forex while using tried and true mathematical algorithms and historical perspectives.
Speaking of gambling, there are various professional gamblers who are multimillionaires. No one can be that lucky, although ambiguity and luck do have their own roles, however these professionals do know how to see the hidden patterns and then take their calculated risks with informed anticipations. Their essential long-term gains absorb their short term losses.
Forex trading should also be approached in a systematic manner; this is the way to make a success of your trades. Just ask those who have been successful in the Forex market; they didn’t guess their way to wealth, they used a system.
By using the market trends to your advantage and implementing a well designed money management program, in this case an automated Forex trading system, a lot of profit can be made in the Forex market.
By: Richard U. Olson