THINK PERCENTAGES AND MONEY MANAGEMENT - best forex trading books amazon

THINK PERCENTAGES AND MONEY MANAGEMENT ~ best forex trading books amazon

This was the Email Response I got from the $236 video challenge and I loved it so much that I had to share it!

People dont realize that its not how much you have in your account that determines success. Whether you win or lose, its all based on percentages. Its still the same percentage of the account gained or lost on an account with $100 as it is with $10,000 or even $1,000,000. 5% gained is $5 on the $100, $500 on the $10,000 and $50,000 on the $1,000,000. The actual returns, money wise is different.. but the percentage gained is the same. People who say success isnt possible with a small account, dont know their percentages well.

You can successfully grow a very small account with proper knowledge and discipline. In fact, its smarter to start with a small live account until you can trade with discipline and confidence; that way you dont lose as much initially. A small live account is training grounds to build a larger account.

Whats the point in adding funds to your account if you cant build the little you have in your account already?? If youre losing and not gaining consistently.. putting more funds into your account is just going to ensure that you lose more! It is the consistency of applying a good strategy, not the account balance that gives a trader the advantage.Hopefully traders understand the value of thinking percentages, instead of account balances.

If you think in percentages, you also understand the value of money management so much better.

For example, if a trader loses 50% of their account, it requires a 100% gain (double!) to get to break even. Whereas, a 25% loss requires only a 30% gain (a mere 5% over the loss) to break even.

A good trading system combined with strict disciple, and good money management will lead to success for any trader, no matter what their account size!
HAPPY TRADING!!!

Thanks Steve!!!
LOVED IT!!!!!!!!!!!!!!!!(^_^)!

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FOREX PAWN SHOP - books on forex trading

FOREX PAWN SHOP ~ books on forex trading

Forex is like a pawn shop where the big wigs want to buy from you below wholesale and resale to you at retail.

Many times at market tops, the news is good and the masses are buying, at the going retail rate while the big wigs are unloading what they bought at the bottom for below wholesale to make a nice profit. (You will usually notice smaller price movement during these periods)

Many times at market bottoms, (which are much harder to predict by the way) the news is usually grim. The public is usually selling cheaply out of panic, trying to save their hides and cover their butts. Then the big wigs who were smart enough not to be in that panic, come in and pick up the valuables at below wholesale prices. It is bargain basement shopping at its best. Supply and demand, accumulation and distribution. That is the cycle of the market my Friend!

Sell
Buy
Unfortunate most investors get this wrong. They buy at market tops and sell at market bottoms. You dont want to buy when price has gone too far upward, because you too are looking for a bargain, which can often be found on a nice pullback. Of course only with proper confirmation to the upside. You only want to sell when you have a nice fat profit in your pocket; so you want to sell at the top as well. Again with a proper confirmation to the downside.

Never ever hold on to losing positions thinking you can out wait the big wigs, instead cut your losses when they are small, (not on market hiccups or retracements, you will learn the difference). Then wait for a valid market set-up to enter the market when it is in the best interest of your money . You too can be like the pawn brokers and buy cheaply and sell expensively! There are always opportunities to make money in the market as long as you have capital. Preserve your capital, so that you too can get in on these sweet deals.

Happy Trading My Friends


How to get rich slowly in forex. Click Here
This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

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RISK MANAGEMENT - forex trading books 2013

RISK MANAGEMENT ~ forex trading books 2013

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Guest post 1 Money Management - books on forex trading for beginners

Guest post 1 Money Management ~ books on forex trading for beginners

Since I only know what I know, I have invited some other seasoned traders to share some of what they have learned over the years as well. I hope that you will find these posting helpful. As always take it slow, be patient and exercise discipline.




Subject: Money management

Hi Traders Friend,

Ill focus this post on money management which is one of the most important parts of trading. The first rule of money management is to preserve your capital. Simply stated, be patient and wait for a good setup according to your own strategy.

Professional traders only risk between 1% to 3% per trade. I personally risk 2% per trade. So how can you determine your risk and keep it between 1% to 3%? I personally use a website calculator at:

http://www.facebook.com/l/a4c62;www.forexhit.com/calculators/aec/allocation-efficiency-calculator.htm


You can pay for a calculator that you can download but the good ones cost about $ 100. Or you can use a free one on a web page. The choice is yours.

You need to know how many PIPs you may have to loose in order for the trade to be invalidated. This depends on your level of tolerance, your trading style, and your trading system. That is another lesson in itself so lets just stick to the task on hand. :)

So lets say you have $ 2,500 in your account and your risk for the trade is 50 PIPs. If you risk 2% of your account for the trade you can only trade one mini lot for that trade. If your risk for the trade is 25 PIPs with the same amount of capital than you would be able to trade 2 mini lots.

If you only made 25 PIPs per week profit, in less than a year you will double your account. Just 25 PIPs per week. You dont have to hit "home runs" every time to grow your account in a substantial way. Nor do you need to risk a large amount for every trade to grow it substantially either.

By keeping your risk low, when you get on a loosing streak (also called a draw down) you can take quite a few hits in a row and not do severe damage to your account and to your trading psychology. Every person and every trading system has draw downs. George Soros and Warren Buffett have had plenty of draw downs, but they keep their risks low and are still Billionaires.

I hope this quick post helps you to start understanding the basic principles of money management.

Alexander.

Get 10 Trading Lessons FREE Click Here


This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.
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THE FOREX TRAP GAME - forex trading books for beginners in hindi

THE FOREX TRAP GAME ~ forex trading books for beginners in hindi

Every day big forex players set traps for little less experienced traders, and as they predict most of the less experienced and sometimes the more experienced traders fall in and lose their monies. Why???? Because trading forex the right way takes the extreme level of discipline that the big players know most people dont possess. The inexperienced trader often possesses the same knowledge as the pro, but the difference between the two is in the execution. The pro will trade a good plan with a very very high level of consistency while the less disciplined trader will try to wait out traps that he has fallen into with the hope that the market will eventually turn and come back in his favor sometimes losing days of sleep waiting for this miraculous turn about. This is the trader that big banks and institutions love because it is this poor undisciplined soul that the banks count on to make their nice lavish livings. It is the truly disciplined profitable traders that the banks lose paper on.

Everyday the banks and institutions use their financial advantages to move price in an artificial direction for a short period of time often creating what looks like a legitimate profitable trade set-up. The traders who see this advantage quickly follow the price move only to find themselves trapped soon after the move has begun. Now this is where the banks find their feeding ground as they know that only a handful of traders have the discipline to cut this small loss and wait for a better trade set-up. They know that most traders are going to cry, pray and beg GOD to do what they had the power to do all along; the next thing You know most of those guys have gotten a margin call and a large amount of funds are transferred from many many small traders who often cant afford it into a few large fat accounts.

This happens day after day after day and the sad thing is most traders dont get it and end up in a debt hell that creates their worst nightmare on earth; while the victors are laughing about their score all the way down to the bar where they will spend a few thousand dollars before they retire for the evening waiting to play the same set-up on unsuspecting traders the next day. It is the sweetest money making deal on earth, and it never changes.

DONT LET THIS HAPPEN TO YOU!!!!!!
BE SMART AND FREE YOURSELF FROM TRAPS IMMEDIATELY!!!!!!!!!
DO NOT MOVE YOUR STOPS, IF YOUR STOP IS HIT, IT IS PROTECTING YOU FROM GREATER LOSS.
IF YOUR STOP IS HIT IT MEANS THAT YOU DONT HAVE THE ADVANTAGE THAT YOU THOUGHT YOU DID AND YOU WILL JUST HAVE TO TRY AGAIN.

TRADING WITH DISCIPLINE IS THE ONLY WAY TO ENJOY ANY REAL SUCCESS IN FOREX. When the market traps you in a disadvantage, it will devour you without mercy!!!
SO FREE YOURSELF FROM EVERY TRAP!!!!!!

Wait for a proper trade set-up and when You see an advantage, go where the money is going.
Dont allow the money to move too far against You, otherwise Your goose will be cooked.

It happens everyday, dont allow them to keep tricking you the same way, and unless you trade with superior discipline, STAY OUT OF TIGHT CONSOLIDATION, it is too much of a gamble....

YOU CAN DO THIS (^_^)!

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TIPS FOR FINDING GOOD TRADES ON A SMALLER TIME FRAME - forex trading audiobooks

TIPS FOR FINDING GOOD TRADES ON A SMALLER TIME FRAME ~ forex trading audiobooks

People find many ways to be successful in the market, some use price action, some use trend lines, some use moving averages and other indicator, some use the news and some use support/resistance, etc. Whichever method You use to bring You success, supreme discipline will make it even more successful. REMEMBER: Your biggest opponent to market success stares back at You from Your own mirror.

Since you never know what the market is going to do, always be prepared to cut a trade that has moved against You. If You are telling yourself, it will come back that is a trade You should have cut.

With a good signal, You are only likely to get 2-6 trades per 24 hour day that yield 30 pips or more on the EUR/USD.

Since the market doesnt trend most of the time, it is a good idea to master other forms of trading.

Lets talk about ways to increase your odds of getting some of those trade set-ups.

Know Your candlestick reversal patterns.

Understand support and resistance.

Understand trend lines, moving averages or any other indicator that you are using.

The more things You have confirming Your analysis the more likely You are to have entered a successful trade.

Example:
A hammer at a point of previous support that closes above a major moving average, at a Fibonacci retracement, with a MACD cross and an oversold Stochastic. That is a pretty extreme example, but more confirmations You have to Your advantage the better.

Always be sure that your flagship candle closes prior to entering the market, because like the hammer in the paragraph candles can drastically change form in the last minutes or seconds of a candles closing.

Considering that You have so few really great trades in a day, You need to put as many odds in Your favor as possible.

Try to trade the more active liquid markets

If You are in a range bound market be sure to identify resistance and support. Only counter-trend off of resistance or support with proper candlestick confirmation.

Trade in harmony with an established trend.

Swing trade swing highs and swing lows in a swinging market.

Wait for a candlestick candle to close confirming a signal.

Have 2 or more things confirming Your analysis.

Take good candlestick reversals within a trend and against the trend. In an established trend You will have corrections and retracements, getting a strong reversal signal in harmony with the established trend usually makes for a good entry.

No trend goes on forever, at some point trends take hard dips and reversals. Candlestick reversals make valuable entry signals in these situations. The more confirmation to that signal the better.
If the next candle engulfs Your entry candle, GET OUT!

Often times reversals at the beginning of a trend is a trap. The more established Your trend; the more likely it is to reverse with proper reversal confirmation.

Trend lines and moving averages are good temperature gauges, they help identify a trend that has already started or they can show market strength or weakness. A price break and close above usually indicates strength and a break and close below shows market weakness, but these can also be market shake outs.

KNOW THAT UNLESS YOU ARE A GREAT SCALPER, YOU DO NOT NEED TO BE IN THE MARKET ALL DAY. AFTER A GOOD RUN, YOUR TRADE IS LIKELY TO RUN OUT OF GAS. Use this time to rest and wait for the next trade. YOU USUALLY DONT GET GREAT TRADES BACK TO BACK. THERE IS USUALLY A WAITING PERIOD IN BETWEEN GOODTRADES. LIKE A BUS SCHEDULE INCLUDES WAITING PERIODS BETWEEN BUSES, SO DOES THE MARKET BEEN PROFITABLE TRADES. THERE IS A WAITING PERIOD, SO WAIT; OTHERWISE THE MARKET WILL TAKE BACK THE PROFIT IT GAVE YOU!!!!

THE VERY BEST SET-UP CAN FAIL. THE MOST IMPORTANT TOOL IN A SUCCESSFUL TRADERS TOOL BOX IS THE CUT SCISSORS TO CUT A BAD TRADE QUICKLY!!!!!!

THE DIFFERENCE BETWEEN A SUCCESSFUL TRADER AND THE UNSUCCESSFUL TRADER IS DISCIPLINE!


If You get tricked, CUT THAT TRADE SHORT AND TRY AGAIN LATER!

DISCIPLINE WILL DO FOR YOUR FAMILY WHAT DESIRE WONT!!!

YOU CAN DO THIS (^_^)!

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