Part of money management in currency trading, the diversification method protects the trading account. Applying diversification method principles to the Forex trading account results in increased chances to survive in the currency markets. There are multiple ways to diversify a trading account. For instance, trading uncorrelated pairs means applying diversification method. Also, fundamental trades diversify […]
Making money is the ultimate goal for anyone engaged in Forex trading. Currency trading sounds exotic; friends will find your story interesting, and the unparalleled rewards worth the trouble. But can anyone do it? Making money in Forex trading sounds very easy if judged by the media advertisements. Just pick a Forex broker. Next, open […]
Part of money management, position trading and position sizing in Forex determine the profitability of a trading account. Many try, few succeed. Traders bear enormous responsibility. From the moment they fund the trading account, suddenly become money managers. Like it or not, this is the reality. However, managing money is not for everyone. Traits must […]
This article is about profit. More precisely, how to use the Forex market to get a high reward from a trade. But does a high reward come with a high risk? And, if yes, what is more efficient? A constant high win rate or a high reward as part of an appropriate risk-reward ratio? In […]
Forex risk management is the cornerstone of trading the currency market. Therefore, understanding and managing Forex risks become a priority. Any trading strategy, no matter how profitable, is subject to money management. In fact, its profitability comes from proper Forex risk management. Think of it for a sec. Any trade has a stop loss. And, […]
One of the biggest dilemmas Forex traders face is where to put the stop loss order. Any trade should have a Forex stop loss order. Trading without a stop loss is not only risky but foolish too. The Forex market swings aggressively. Not once, the currency pairs travel only to take the stops on a […]
In this live Forex trading example I attempted to trade a bounce from a bearish trend line on the M5 chart of the AUD/CAD Forex pair. This created a nice short trading opportunity on the chart. However, things did not develop exactly as planned and I did an early exit from the trade. Signals of the […]
In this live Forex trading example i will show you the way I traded a bearish impulse that came after a Forex support breakout. The example takes place on the H1 chart of the AUD/USD Forex pair a.k.a Aussie. The trade also involves the successful usage of a Hanging Man candle pattern as a confirmation. Signals […]
