Risk management in forex trading
“A ship is always safe at the shore - but that is NOT what it is built for.”
― Albert Einstein
There is no arguing about it – forex trading does involve risk. All the various fundamental and technical analysis shows you that even when things seem predictable, sometimes volatile things happen.
How to protect your account from negative balance?
The market never ceases to surprise us with its volatility, captivating moves and possible profits. It is important, however, to use risk management techniques to keep your trading account safe. One of the techniques often overlooked is the negative balance protection policies of the broker you trade with.
How To Have a Wide Stop-loss And Still Maintain an Excellent Risk/Reward Ratio?
Risk against rewards is the very basis of any investment, it is also what keeps traders from being irrational and throw away large amount of money on a gamble that may not pay off. FOREX traders have long maintained that a positive risk- reward ratio is the key to bringing in profits in the long term in a consistent and steady manner.
Managed Forex Accounts – A Must Read to Avoid Being a Victim of Forex Fraud
Financial markets are a complex and multi-faceted world that a beginner might find confusing and in some cases overwhelming. The multiple strands of analysis, the plethora of data and the contradictory directions these pull a traders can be confusing. Choosing a broker, determining the ideal trading style and strategies can be overwhelming too.
Risks and Margin Calls
Loosing money in forex is the part of the game. Don't let it freak you out, however it doen't mean you can be careless. Loosing money and learning from mistakes is one thing.
Losing More than Invested
Thanks to margin, today online forex trading is available to any investor. Margin allows a trader to control 100 - 500 times more the amount of money actually deposited. When there is a chance of profit, there is also a possibility of loss. By borrowing sums that a trader doesn’t actually possess, is it possible to lose more money than invested? Is there a possibility of negative balance? Can you end up owing a large sum of money to the forex broker? And if so, how can you protect yourself from it?
Real Risks in Forex Trading
Forex trading is considered a risky investment; therefore many are hesitant to even try. Is it the fear of the unknown, or is Forex really that scary? What are the risks involved? Are there ways to avoid the pitfalls?
How To Backup Your Trading?
Natural and technical disasters are not uncommon when you trade from home. Computer failure, electricity cut off, hurricane, unexpected visit from a neighbor, health issues and other factors can lead to loss of money if you aren’t careful. What should be done if your positions are open and your trading platform fails? What is the way to limit your risk from all possible disastrous scenarios? Do you have a trading plan for an unforeseen set back?
Risk Management - Discipline Tips
There are regrettable times in every forex trader’s life when trades go wrong. Mistakes lead to panic, greed and impatience and every last dollar slips through the fingers. After blowing forex account to the last cent, we all seek words of wisdom and guidance to find a way to deal with the pain of loss. How to spot and understand your mistakes? Who is to blame for losing all the money? How to avoid the same slip-ups in the future? These are the questions many of us ask after a bad incident in forex market.
Forex Trading Exits Strategies
In forex trading making correct entries seems to be an easier task than making exits. Most traders suffer from exiting-too-early syndrome and therefore missing out the extra points. In most cases bad exit taking causes you to miss out on more than half the profit you could have. What are the key factors when it comes to staying in or exiting? Is it more profitable, for example, to just set the stop and the limit, and wait until either of them gets reached? Does the understanding of exits available help minimize losses and lock in profits?