20 September 2013

7 Important Tips to Minimize Losses in Forex Trading

Another important Skill, I want to share with you!
This helps in all kinds of business..
Oh well this apply to Forex too! =)

"7 Important Tips to Minimize Losses in Forex Trading"

Unfortunately for traders, it is nearly impossible
to eliminate losses entirely. It would be a truly
rare occurrence to actively trade for even as little as a
week without incurring any sort of loss along the way. The
primary cause of this is the volatile nature of currency markets.

With that being said, here are some ways to minimize
your losses and keep your overall trading profitable.

1. Realize That Losing Is Part Of The Game.

Once you understand and accept that there will be losses,
it will allow you to better prepare for them, as well
as to move on to the next trade. It happens to even the
best traders, so don't let it discourage you. Forex markets
can be fickle, so realize that before you begin.

2. Know When To Cut Your Losses

Don't try to rescue a losing position by pouring more cash
into it. If a trade is failing, allow it to die and move on
to the next one. Also, use this as an opportunity to evaluate
what went wrong with this trade, so you are less likely to make
the same mistake twice.

3. Tell Your Broker To Close Losing Positions

Your broker should be instructed by you to have a
system for closing losing positions on your behalf.
There should always be a margin call in place, so that
your account will never end up in negative figures.

4. Be Cautious

Always be aware of the risk profile of any position
before you enter, and until you are more experienced
try to avoid trades which have higher risk. It is often
safer to follow existing trends than to attempt to
predict changes in the markets.

5. Don't Get Emotional

Don't become emotionally attached or loyal to a forex trade.
If you lose, you lose, and if you win, you win. If you
lose money on a particular trade, don't commit to that
trade until it turns around. Get out of the position and
move on the another trade.

6. Slow and Steady Wins The Race

While it's absolutely true that the volatility of
forex markets can lead to big profits very quickly,
it can also lead to big losses just as fast. Don't expect
to get rich quick when you begin trading. Remember that
a profitable long-term trading strategy is what is going to
make you money, not one big trade that makes you rich overnight.

7. Accept Responsibility

Whether you make millions or lose it all in forex trading,
it's your fault. Learn to be responsible for whatever
happens with your trades, and you will probably find
yourself making much better trades. Avoid tips on the
next big trade or how the market is going to move;
it's usually wrong.

Whatever you do when trading in the forex markets,
never dwell on your losses. Accept them, learn from them,
and then dust yourself off and move on to the next trade.

With Regards,
Scott Morgan

Forex Broker
==> http://ForexChannelIndicator.com/tradefx.html

Free Forex Trend Report
==> http://ForexChannelIndicator.com/ForexTrendy.pdf


Collected : all credit goes to original writer

23 February 2013

FX ECONOMIC CALENDER

This Economic Calendar is developed and provided by FxFisherman.com, a huge forex community.

01 December 2012

Force Index Indicator mt4

  Force Index Indicator measures the Bulls Power at each increase, and the Bulls Power at each decrease. It connects the basic elements of market information: price trend, its drops, and volumes of transactions. This index can be used as it is, but it is better to approximate it with the help of Moving Average. Approximation with the help a short moving average ( 2 intervals) contributes to finding the best opportunity to open and close positions. If the approximations is made with long moving average (period 13), the index shows the trends and their changes.

  • It is better to buy when the forces become minus (fall below zero) in the period of indicator increasing tendency;
  • The force index signalizes the continuation of the increasing tendency when it increases to the new peak;
  • The signal to sell comes when the index becomes positive during the decreasing tendency;
  • The force index signalizes the Bears Power and continuation of the decreasing tendency when the index falls to the new trough;
  • If price changes do not correlate to the corresponding changes in volume, the force indicator stays on one level, which tells you the trend is going to change soon.
    Calculation
    The force of every market movement is characterized by its direction, scale and volume. If the closing price of the current bar is higher than the preceding bar, the force is positive. If the current closing price if lower than the preceding one, the force is negative. The greater the difference in prices is, the greater the force is. The greater the transaction volume is, the greater the force is.

    FORCE INDEX (i) = VOLUME (i) * ((MA (ApPRICE, N, i) - MA (ApPRICE, N, i-1))

    where:
FORCE INDEX (i) — Force Index of the current bar;
VOLUME (i) — volume of the current bar;
MA (ApPRICE, N, i) — any Moving Average of the current bar for N period:
Simple, Exponential, Seighted or Smoothed;
ApPRICE — applied price;
N — period of the smoothing;
MA (ApPRICE, N, i-1) — any Moving Average of the previous bar.

Technical Indicator Description

Full description of FRC is available in the Technical analysis: Force Index

bbb bolinger band blust

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