Learn To Analyze Cause You Loss In Forex Trading

Learn To Analyze Cause You Loss In Forex Trading

In the world of forex, there is a huge chasm between the trade and analyze.

All traders must learn to manage risk if they hope to profit consistently.

So, the question often comes up is the classic why some traders can make money consistently while others lose?

The difference between trade and analyze

Many new traders to enter the market with a different background, there are from the fields of Economics, finance, or politics. But one of the biggest mistakes that owned a trader is to have hope that ' markets are often wrong and the price should be and will definitely come back again. "

But this time, let's persamakan our perception that the market is not easy to guess, and no matter what type of analysis you use when there are a number of new information is entered into the market will make one similarity that traders and price makers don't want to lose money or loss transactions.

This statement, finally making that analysis be worthless? Of course not, analysis is only part of being a successful trader. Analysis is the way to get the probability with the advantages of the trader.

The example below is the use of risk management that potentially would destroy its successes winning percentage 70%.

How do I do an analysis of the trade

The first thing, traders need to have goals that Transact in the currency markets is to make money with potential losses are small.

So based on the above facts, the next logical assumption is the trader should be able to control your losses.

So risk management not only as a preference or style of trading but this is an absolute imperative for long-term benefit.

When a mentor or traders who have experience with the high flying hours explaining risk management, rarely a trader is ready to stand up from their seats by going and manage the risk of the transaction. Most people or traders just want to hear about open positions, strategies and methods of analysis to try to get the most profit opportunities. The above statement, not wrong ....

When a trader to learn to manage risk, it will be a lot of additional work to be done. The first needs to do is observe proper risk management because trade is not just a ' guessing ' and ' hope '.

Profitable trading is applying the analysis while risk management should be appropriate so that losses can be reduced and profits can be maximized (read about risk management).

How does one begin to use risk management ' right '?

As humans, we often follow the instinct or ' feelings. " But in trade, we have to put in the appropriate strategies and stay focused on the kind of smaller risk and higher reward.

How to fix trade with proper risk management is to set boundaries and limits the loss of profit on each trade with minimum risk reward ratio 1:1.

Unfortunately, risk management is not as simple as just by setting the stop level and setting limits. If a trader takes a position that is too large relative to the size of their accounts, even if using a risk ratio of 1:2 or 1:3 will make the chance of trade will fail.

The next one, never put all your eggs in one basket and realize that the impact of the use of leverage can bring great potential loss.

And make sure in your heart that the Holy Grail strategy (a strategy unlikely loss) doesn't exist and the best you can do is look up and use the approach strategy that fits with market conditions.

Piratebay 6:05:00 AM Komentar