Seems like no thread on Forex except for FCS.
Talk about Forex trading here.
Talk about Forex trading here.
Scoop for cai png or 2 Star Michelin food all are also welcome for "horse race".
TRICKS OF THE TRADE
1) Work out a strategy that suits your trading style.
2) Capital preservation. In this game the winners are marathon runners not sprinters.
3) Before each trading day read up financial news and upcoming economical data release timeline first.
4) Have a healthy margin level. In case flash crash happens.
5) Trade currency pairs with tighter spreads and high liquidity.
6) Risk to reward ratio. If instinct tells you it is a bad deal. Walk away. Plenty of opportunities going forward.
There are too many factors to list here. One will learn as you go along. Eg. AUD, NZD, CAD are correlated to commodities prices.
RISK MANAGEMENT
Low risk appetite: Place stop loss at 10 pips.
Medium risk appetite: Place stop loss at 20-30 pips.
High to extreme risk appetite: Place stop loss from 50 pips to no stop loss.
Your risk appetite is also getting higher?
I think you guys are starting to get the hang of it. This is what I meant by letting it run its own course. Use stop loss sparingly because your profits will be eaten by frequent stop loss cuts.
EUR, GBP and JPY are highly volatile especially if there are major data releases. The price movement will prata (range bound) multiple times and triggered all stops both north and south bound.
Sometimes we must also learn how not to trade when positions are stuck. Do not do dollar cost averaging with multiple positions on same currency pair because your used margin will be under stress.
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