Forex Money Management

Forex Money Management - The Zurich Axioms and How to Use Them For Triple Digit Gains

If you want to get rich, no matter how inexperienced you are in investment, then one of the best places to start is with the book the Zurich Axioms and here we will look at some that you can apply to forex trading to supercharge your gains...

In this article we are just going to focus on the risk element of the Zurich Axioms and how it relates to forex trading although the book gives you loss more great investment advice and is one of the greatest books on speculation ever written.

Love Risk!

The 12 major and 16 minor Zurich Axioms contained in the book are a set of principles providing you with realistic management of risk, which can be followed successfully by anyone, not merely 'experts'. When dealing with risk, you have to see it as opportunity manage it and love it, as its your route to trading success

The book teaches you to take risks and meaningful ones at the right time which is what you have to do to make money in forex. You have to manage risk and the Axioms, will show you how.

Several of the Axioms do not conform to traditional wisdom but don't let that worry you, most forex traders lose, yet the Swiss speculators who devised them became rich and the proof as they say is in the results.

Let's look at the major Axiom on risk and how its view is very different to what most so called experts teach.

Axiom 1: On Risk

"Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough. Put your money at risk. Don't be afraid to get hurt a little... Worry is the hot and tart sauce of life. Once you get used to it, you enjoy it".

Most people are so afraid of risk they actually create it in forex trading. They end up having stops so close their bound to get stopped out or think they can make a regular income etc and then they get the reality check.

Related to the above Major Axiom are two minor ones which most forex traders would be wise to learn
Minor Axiom I

"Always play for meaningful stakes".

How many times do you hear experts tell you to risk 2% of your equity? All the time but for a forex trader with a small account the reward isn't going to be much say you have $1,000 and risk 2% that's $20 bucks!

If your stop is that close. Then you are going to lose quickly.

My own view has always been look to risk 10 - 20% of your equity. If the opportunity looks good hit it hard and go for a meaningful gain. This isn't being rash it's how to win and if you don't like doing this then forex may not be for you.

Minor Axiom II

"Resist the allure of diversification"

Diversification is another word for diluting your gains and if you diversify on a small account you will end of getting no where. Why on earth, would you want to simply diversify when you have a great high odds trade?

All you will do will see your great trade diluted by one that's probably an also ran. Forget diversifying and hit the high odds trades with all you have and concentrate your effort on that trade. You don't need to trade often be patient and wait for the high odds trades.

Sure most experts don't agree with the above and it's not conventional wisdom but how many traders are so frightened of risk they never take enough risk and get stopped out by volatility, or listen by so called experts, who tell them forex trading isn't risky, when of course it is by its very nature.

The truth is forex trading is risky and if you learn to love risk, play for meaningful stakes and hit the high odds trades hard, you can win and make triple digit profits.

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A Crash Course to the Basics of Day Trading

A Crash Course to the Basics of Day Trading

The human race has gotten familiar with the idea of trading since time immemorial. It has been the people's outlet for survival, prosperity and progress, and for the exchange of their feelings, ideals, and experiences too. With a little back up of history, it can be traced back to when some of the primeval groups started swapping certain useful items with one another in the absence of money so that they could fulfill their daily provisions. Nonetheless, trading is an integral part of man's life. It transcends race, religion, and sex as it is a common thing for all throughout the world. In this article, you will get a full blast of the information regarding the types of day trading and its pros and cons.

The following are the types of day trading which are qualified by the time frame in which the traders prefer to keep their stocks.

Basic day trading. This refers to the day that the trader opts to collect the stocks and then keep them floating for quite sometime in the effort of selling them all at once at the end of the day. The trader is both the seller and purchaser. One of its primary benefits is that he saves his stocks from being affected due to the unstable prices on the market.

Swing day trading. Bigger profits drive the trader to maintain the stocks under his custody for a longer period of time. Its downside is for the stocks to be gravely affected by the changing prices in the marketplace.

Position trading. With this, the trader buys the stocks and organizes them to last for a couple of weeks and sometimes even months. The trader is usually a good player because he waits for the best time to sell the goods.

Online trading. This type may cover any of the abovementioned day trading types except that the selling and purchasing of the stocks are done through the World Wide Web.

Day trading is a task that requires one's full attention specifically because the stock market constantly fluctuates. If you are serious about this kind of business, you'd better be active and aware of what goes on around you. The stock market is one of the most uncertain places on earth.

You can't define the outcome of your endeavor unless you try it yourself. Nevertheless, exercise full caution when dealing with stocks.

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Forex Trading Tip - Accept This Fact If You Want to Win!

Forex Trading Tip - Accept This Fact If You Want to Win!

This is a sobering fact - but unless you accept it then you will never win at forex trading so here is your fore tip to put you on the right track...

You're on your own and only you can give yourself success - no one else. Forget all the $100 buck robots promising you financial freedom, try these forex systems and they will burn your equity. They have never been traded and have made paper profits only and wouldn't sell for $100 bucks either. Also forget all the mentors with their secrets - there hardly secrets if you know them!

Even if you do find someone to follow who has a good forex trading strategy, you can still lose, if you don't have confidence in what you're doing and understand the logic. The reason is - if you don't understand how and why the system works, you won't have the confidence to follow it, through losing periods and all trading systems have these.

You're on your own - if you follow or if you have your own forex trading system - you have to execute it with discipline.

If you understand this, then the forex market is probably an area you can make money, if you don't, either re think your forex education or do something else.

Forex trading is hard and you would expect that - with the rewards on offer.

Keep in mind 95% of traders lose and that's a fact so it's not easy.

Now if you have the right mindset, you learn currency trading the right way and win and the good news is:

Anyone can learn to trade - trading is a learned skill, so you just have to do it the right way and that doesn't mean working hard, it means working smart. A couple of weeks and you will be all set. All you need is a simple, logical forex trading strategy you can execute with discipline and your on your way.

In forex trading it's not about how much time you spend on your market timing - you are judged on how much money you make with your trading signal and that's it and a simple trading system will work well.

So if you want to win, you. Simply, get the right forex knowledge and apply it with discipline and you can earn a great second or life changing income, in under 30 minutes a day and enjoy currency trading success.

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How To Make Money By Trading Foreign Currencies

How To Make Money By Trading Foreign Currencies

The currency foreign trading market unlike other trading platforms around the world offers a lot of opportunities for people all over the world to make money, because the gives equal chances to everyone to participate in trading no matter the country. It will be very wise to make use of this opportunity to make money for yourself in this open and fair global market. It will be very easy for you monitor your progress without stress since you can access your investments through your account any time you want, without the intervention of a broker. It will be cost - effective because you don't pay charges for your transactions, it's just you and your customer, and hence your money is saved.

Get set to start making money by registering online for currency foreign trading; you will need to establish either an account of foreign currency for individuals or customers, but it is wise to put your money in the spot account and not in the futures account of the foreign currency. By doing this you will be able to trade online at real time. After your registration you can select a broker of your chose who will help monitor your investments. Because it does not require huge capital you can even start with as little as $100 USD.

Now, start buying and selling to make money, the more you practice the trade the more money you make. You should know that you will require some skills to forecast the rise and fall of different currency prices so as to know when to buy and the best time to sell - at this point you start making great profits. One of the ways to know is to observe the different economic and political trends of different countries to ascertain the rise and the fall of these currencies. You will need to know the different trends as to determine the currency price direction. The different trends are the uptrend, downtrend and sideways. Like I said, the more you invest and practice the trade the better you become. There is no better place to learn than in the market. So, get to currency foreign trading market and start trading.

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Expert Advisors and What They Can Exactly Generate Forex Trading

Expert Advisors and What They Can Exactly Generate Forex Trading

Acquiring exceptional access to forex trading has been feasible to almost all people who are willing to be part of the foreign currency trade. Various investors as well as different banks are known to be few people who can only have exclusive right to take part in the trade however, at present; individuals can specifically gain a slot and acquire an expert advisor system as well. This kind of program is designed for the proper execution of restraints made for trades.

The expert advisors are developed to generate the fine distinction of forex trading and its competition in the global market. This kind of system is considered crucial in any forex dealings as it acts as an automated monitoring machine giving updates of the closing and opening time. Without these, all transactions and information would be done manually which any trader wouldn't want to endure. Acquiring an expert advisor system can provide warning indications in the trade, types of orders and a lot more. This kind of system holds a lot of beneficial aspects that can be very viable to traders. Primarily, forex indicators have the capacity to achieve and make connections with an investor's account directly and procure sentiments out of the trading circle. There may be a lot of traders thriving in the trade industry these days yet, their commonalities are based on the fact that they have parameters and circumstances to follow. Thus, making the trading not a sheer conjecture but also aids in averting and precluding to act on an impulse.

The standard quality of expert advisors is to make every trader successful in the trading field and this kind of concept should flourish in order to sustain the intensity and height of success for future trades. Nevertheless, the success of forex trading relies heavily on the measures influencing currency markets and the long-term spreads involving currency trade. This can also be subjected depending on the status of the economy as it changes the value of currency as the economy collapses. Some of the major dilemmas that can truly affect forex trading are through various economic policies, political landscape, the budgetary measures and a lot of unforeseen events that may create havoc to the supply and demand of the country's economy in general.

This is precisely the reason why expert advisors served as a one of a kind strategy that a trader can employ.
Expert advisors are all analogously programmed combined with a mathematical algorithm. These advisors are not people or online firm that provides services when it comes to financial trading, this is a kind of program that works on all facets of forex trading with the assistance of the Metatrader 4 Forex Trading Platform that works well with the system. Expert advisors designed and contrived all probable trades as it generates a prompt evaluation of data. It also monitors the movement and activity of the currency market and upon completion, these advisors will have the final affirmation whether to sell, buy or stay behind the curve.

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F X Trading Tips

F X Trading Tips

F X trading or foreign exchange trading is a great place to earn a second income. I'm going to share with you some of my favorite tips that I have used to help me generate a good amount of quality trades that have let me make a decent sum of profit.

• Select The Right Broker For You: There are hundreds of brokers that you can use, both online and offline. Since there is an abundance of choice, this can be a difficult task. You face one particular challenge that comes with the internet and that is determining the quality of a broker business. Anyone can put up a website on the internet. You don't know if this is a large reputable business or someone running this out of their parents basement. The best place I've found to get unbiased views on brokers are at forex forums. These can be easily found with any search engine. Traders get together and talk with each other. Often the most hotly talked about topics are brokers. You'll hear everything, from the good, bad and ugly.
• The News Has Free Information: Have you ever wanted a mentor to tell you what is going to happen in the market, well, you won't really get that advice for free, but the news is the next best thing. It won't tell you what will happen in the currency market, but it will give you economic news that you can figure out how it will affect the currency market. Most economic news is released at scheduled times, typically in the morning. Basically, if the news is "good" and good for the economy it is good for currency. If it is "bad" and bad for the economy, it is bad for currency.
• High Volume Times: The best time to trade is during the high volume times. There is on simple reason for this: no manipulation. Since so many people are trading and there is so much money moving around, you won't see a big bank make monster trades that can cause currencies to go in a completely different direction. Everything typically moves with market forces at this time.

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Currency Day Trading - My 5 Biggest Mistakes

Currency Day Trading - My 5 Biggest Mistakes

Currency day trading is 90% mental! I had heard this from many professional traders but when you start as a novice in the Forex world you can fail to realize the significance of that statement.

Of course, it is necessary to develop analysis skills using a variety of technical indicators. Risk management and understanding of the market is also crucial if anyone is to succeed at currency day trading.

But the greatest challenge of all is developing mental discipline and emotional control. After many months of practicing in a demo account and testing the water cautiously with a few hundred dollars in a mini account, I studied my main trading faults and documented them.

Here are my 5 biggest mistakes. Perhaps you can learn from them too!

1. ANXIETY & DESPERATION - LEARN TO RELAX!

Feeling a compulsion to trade - its poison!

If good opportunities were missed the day before, or if one or two days have been quiet with no trades, then you need to carefully monitor your emotional and mental state.

If feelings of desperation begin to rise take a step back and enforce strict mental discipline - keep to your strategy, only look for safe trades, wait for the right setup!

2. IMPATIENCE - LEARN TO WAIT!

How many times do we enter trades prematurely? Wait until the setup really sets up!

Don't be afraid of losing an initial big run because:

• Its not worth the risk
• There will always be another opportunity
• Catch the next retrace when it is much safer

3. LOSING CONCENTRATION AFTER A LOSS - KEEP FOCUSED

There is a danger after a losing trade to either:

• Shut the mind down so you become closed to further opportunities that day
• Act in desperation by impetuously entering an ill-thought out trade soon after to try and regain losses

After a losing trade muster up all your mental resources and detach yourself from it. Imagine standing on a chair and shouting at the top of your voice: "NEXT!"

4. THE MENTAL RUT - BE READY TO SWITCH DIRECTION

If price goes opposite to what your initial analysis told you, look at charts with new eyes following the direction of price.

It can help to maximize a chart on your screen and look at it from across the other side of the room. Get your mind out of the one direction rut and look at the chart afresh looking for new opportunities in the new direction.

5. FAILING TO TAKE REASONABLE PROFITS

How many times I have been looking at a profit of 20 to 25 pips on the screen only to see it evaporate before my eyes because I was hoping for a big move and decided to hold on.

Currency day trading by nature revolves around smaller price movements. Often price will get to 20 or 25 pips and then retrace. It may then resume its direction or it may not.

I have learned it is important to take the first profit early, and then let an additional lot or position(s) run to a more ambitious profit target. At the same time as taking out the first early profit, the stop is moved to protect the remaining positions.

I used to put myself through much mental anguish from failing to take a 20 or 25 pip profit. Price would come back to perhaps 5 or 3 or 2 pips and now your emotions come rushing in regretting you didn't take the profit that was offered to you and hoping against hope price will return and even go on further for the big one!

Save yourself a lot of mental exhaustion by taking a reasonable profit early after examining the charts to see where the first major level of support or resistance is likely to be.

Identify And Act

I have heard it said many times that currency day trading is more an art than a science. Each individual interprets the charts according to their own perception. There are no rigid, hard and fast rules. Having said that, a solid currency day trading strategy is necessary obviously.

However, it must be backed up by strict mental discipline and control over emotions. See if you identify with any of my 5 biggest mistakes listed above and take the appropriate action!

Do you know an important lesson Mohammed Ali teaches us about Forex trading? Read it here:

http://moving-average-scalp-trading.blogspot.com
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