Working on financial markets implies high risk; in order to become a successful trader, one should minimize potential risks. This article is devoted exactly to reducing them.
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A drawdown is a decrease in the balance and equity on the trading account; to put it simpler, a drawdown is a loss. Drawdowns can be of two types: floating and fixed.
The Netting system allows only one position open in any direction for one instrument. The system is used all over the stock market. To put it simpler, the trader cannot open selling and buying position on one instrument simultaneously - the positions mutually close, the orders open in one direction summing up.
Let us have a look at the main economic indices and their influence at the currency rates. The knowledge and understanding of these indices are the basics of fundamental analysis and forecasting of price movements.
To gain experience and enhance your future results, you should start with a demo account, where you can test your trading system without risking your real money.
The Trailing Stop is a much flexible and comfortable way of using the Stop Loss. With this instrument, the trader gets an opportunity to use the whole potential of the market movement, simultaneously reducing the risk of large losses.
Demystify money management: a comprehensive approach to safeguarding and growing assets. Dive into strategies that strike a balance between risk reduction and profit maximization.
In this article, we shall have a look at the pros and cons of both systematic and situational trading, discuss their differences, and speak about the practicability of each of them.
Everyone who comes to the market craving for money thinks that they will be among that 10 % of successful traders that can be called "cream of the cream". Such a way of thinking is logical and natural, because — who will ever aim at bad results? Well, a question emerges then: where do the remaining 90% appear from? What happens to them next? Why do these statistics of 90% losing traders against 10% gaining ones exist at all?
There is no successful Forex player that has achieved a good and stable result without an efficient money management system. Wise and weighted up capital management allows for playing on the high-risk market thanks to marginal trading. In this article we are going to have a look a the main rules and principles of money management on Forex.
In this article, we are going to speak about the essence of HFT, its history, its development, its principles and the part it plays on the modern financial markets, as well as about its types and strategies and its perspectives.
Most often, using Martingale on Forex is reduced to merely doubling the position after a loss.
A lot is a volume of an operation on the Fore market, which is defined by global standards. 1 lot always equals to 100,000 units of a base currency.
Psychologists recommend formulating your goals as precisely and carefully as possible, projecting them on your subconscious and controlling your progress towards them. Systematic investors and traders have managed to secure themselves at the top of the market not just because they own some super system or insider information; the reason is, their goals are based on their long-time experience, their knowledge, technology, psychological stability and skillfull risk and money management. Trading without a clear idea of what, when and how we are planning to reach washes the main part of "plankton" off the market very quickly. The more detailed and realistic your goals are, the lower the risk of losing your deposit.
A Japanese candlestick chart looks like a rectangle with two "tails" on the top and at the bottom. Same as the bars reflects four prices...