Saturday, May 28, 2011

Special Strategy Trading Forex or Currency

Special Strategy Trading Forex / Currency
Margin = equity you are available to withstand the defeat of (minus).

Trade is not really your ingenuity in fundamental analysis (news), technical analysis (reading charts), but you just do MANAGEMENT MARGIN expertise. Proved that 90% FAIL in trade Forex traders attributed to the wrong Margin Management.

Examples of this Management as follows:

Your Deposit with $ 1,000 in ForexFirm with Laverage 1:100, it means you have the power quantity of 100,000. If you do trade with quantity 10 000 then you really have to use 10% of your margin.

If you find that you have chosen the wrong position in the trade, then you have the ability to withstand the defeat of -900 pips for one position. If the position -900 in the position you found then you will get “MARGIN CALL” and the value of your deposit will be stayed $ 100, worth Quantity you say …. He lost $ 900 you.

This error is caused because you do floating.

Floating This is the opening position BUY SELL or uncovered by the TARGET or STOP LOSS.

If your lid with the Order Target, then in that position is automatically closed your position with the results of PROFIT. If you cover it with a Stop Loss Order, then the position is automatically closed by the results of MINUS. Tradding with floating is suicide … .!!!!

Now, to avoid this, you must perform accurate margin management, the way it is:

  • BUY LOW only when the currency position.
  • SELL HIGH only when the currency position.
  • We recommend that you do not use the Margin> 10%.

Now the problem you’ve changed … .

The problem is how to find that the current price is the price Price High to Low or Open Position can be done accordingly. To Know This way, please you look at the menu “Calculation RANGE ANALYSIS

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