Signal Forex Trading @. Forex trading are classified as investment is high risk. This means that forex trading has classified as high risk. One of the highest among other financial investment instruments.
- Possible loss of funds has a 100%
- Flow of funds very quickly (very liquid)
- There is no method of trading that can guarantee you 100% sure hit. There are many methods of trading a good but no one can guarantee 100% sure hit
Forex trading is not a "rich quick scheme" that can suddenly make you rich without working hard. There is no success without hard work. Hard work is the part that is not separated from those who have experienced financial success in life. Including those who are successful through forextrading.
- Hard work necessary to learn the analysis and market behavior so that we can guess the direction of price movement accurately. So also needed extra mental results when trading is not in accordance with what we expect.
Ask the trader-trader success that you know, whether they had experienced in the fall up trading them.And the answer is almost certainly "yes." The success is only provided for those who want to try and learn continuously meperbaiki himself.
Now associated with the risk that must be faced if we want to start investing in forex, you need a special trick-tips to minimize or even reverse our position that was minus a positive return and get lucky. Here are some tips and risk management that you can take:
Action is close your position with the opposite movement of the market price. Cut loss is used to limit losses experienced so that it does not cause a loss greater.
With all considerations, Mr. A would like to close the position at 1.8825 only. So Mr. Ronny 25-point loss (1.8825-1.8850 = -0.0025)
Profit and Loss is calculated with the formula as follows:
Note:
Position Close: 1.8825
Position Open: 1.8850
Quantity: 10000
Then:
Profit / Loss = (1.8825 - 1.8850) x 10000
Loss = -0.0025 x 10000
Loss = $ -25 (Mr. Ronny lose $ 25)
2. Switching
This action is similar to cut loss, but the difference after we close the position the losers, we open a new position with the same direction with the movement of market prices.
In the case of the same cut over the loss, then we close our position at 1.7980 then we opened a new position as the Open Sell prices tend to decline. Thus, if prices continue to go down, say to reach 1.7900 so overall we have 20-point loss, but profit gain of 80 points (1.7980-1.7900 = 80) so that the total profit we still get 60 points.
Example case
Neng Cantik akan NAIK price estimate. So to get the benefits he decided to buy (Buy) in the hope that prices will rise so that he can sell the more expensive the price difference and get the advantage. But it was not increased, even TURUN price.
And after re-analysis, a conclusion Neng Beautiful estimates that the price was increased akan Error. So what should he do? Than the market price and suffer losses, Moreover the price will go down further from now he decided the position of the losers Buy it and then open a new position Sell (with the expectation the price will go down). And in fact the price down so that he continues to experience losses that exceed the benefits received in the position that he Buy previous close. Then he closes the position and Sell benefit.
Tips For You:
- Do only if the predicted benefits switching melebihinilai the first loss position will be closed.
- If it turns out that the price changed in accordance with the input first, then you will suffer loss 2 times, the first position and second position also
Case Details:
Mr. Ronny open position Buy GBP / USD at 1.8850 with a number of Quantity 30,000. Mr. Ronny predict that presently he can liquidate the position at 1.8900. Therefore, he created the position for Risk Management: Stop Loss at 1.8800 and Stop Limit at 1.8900. In fact the price move down to the uncertain range of 1.8820. With all considerations, Mr. Ronny simply want to close the position at 1.8825. So that Mr A 25-point loss (1.8825-1.8850 = -0.0025)
Note:
Position Close: 1.8825
Position Open: 1.8850
Quantity: 30000
Then:
Profit / Loss = (1.8825 - 1.8850) x 30000
Loss = -0.0025 x 30000
Loss = $ -75 (Mr. Ronny lose $ 75)
Then again, Mr. Ronny analyze and predict the price and the price will continue moving down, then open a position, Mr. Ronny Sell with 20,000 on the Quantity of 1.8820. Not some long hold down the price to be in the range 1.8730. In the end, Mr. Ronny position close to the 1.8740. Mr. Ronny get the 80 point advantage (1.8820 - 1.8740 = 0.0080)
Profit / Loss = (1.8820 - 1.8740) x 20000
Profit = 0.0080 x 20000
Profit = $ 160
Overall results from two earlier trading is
Trading I = - $ 75
Trading II = $ 160
Profit = $ 160 - $ 75 = $ 85 or Rp765.000, - ($ 1 = Rp 9000)
3. Averaging
This requires extra capital to maintain the position we have open that move opposite to the market price.
Say in the same case with the Loss Cut above example, if we want to do action averaging then we open a new position, but in this case is not like switching a closed position that we lose ago to open a new position at variance with our previous position with reasons the price has moved down. On averaging, we're not closing the position that we have been opened (in this case the Open Buy) and even our menambahinya with a new position with the same direction, namely the Open Buy again!
Why? We do not have the Open Buy and previous loss experience, and why we do the Open Buy again?The reason is simple, we hope because the price came down so prices will rise again so that when we perform the Open action Buy the second price move is expected to increase even beyond the Open Buy us first so that we gain ganda.
Example Cases
Neng Cantik predict that prices will rise then he opened Buy positions. But the price was moving down.Neng Cantik more quickly analyze and sum price will only go down shortly, and will rise again according to the analysis before he decided to open a new buy position when the price came down so prices rise again when she not only has a 1 position that profit but at the same time 2. In fact true, not long after the price increase and then Neng Cantik close to its second position, the first and second.
Case Details:
Mr. Ronny open position Buy GBP / USD at 1.8850 with a number of Quantity 20,000. Mr. Ronny predict that presently he can liquidate the position at 1.8900. Therefore, he created the position for Risk Management: Stop Loss at 1.8800 and Stop Limit at 1.8900.
In fact the price corrected and move down to 1.8825.
Mr. Ronny back the position Buy GBP / USD at 1.8825 with the number of
10000. He also installed at 1.8800 Stop Loss and Stop Limit at 1.8900.
Then not long after the price back corrected and touched 1.8900.
Thus, Mr. Ronny get 2 benefits from that position 2 has been opened:
Position I:
Profit / Loss = (1.8900 - 1.8850) x 200,000
Profit = 0.0050 x 20000
Profit Position I = $ 100
Position II:
Profit / Loss = (1.8900 - 1.8825) x 10000
Profit = 0.0075 x 10000
Profit Position II = $ 75
The number of second positions Profit: $ 160 + $ 75 = $ 235 or Rp2.115.000, - ($ 1 = Rp9000)
The three risk management over the very simple and easy to do. So, unfortunately we could lose just because we do not know the things above. But to know whether the three risk management we have never ascertained the loss?
The answer is of course not. If you cermati, a third above the risk management focus on one thing: our ability to analyze price movements. Yes, indeed that is the core of forex trading. Risk management did not even become effective when we can not afford to do the analysis correctly and accurately. Thus, the analysis is imperative to know in starting the investment in forex trading.
Still much to be learned in the world to invest and enter into forex. We just learn the terluar from this investment. Important that you learn and learn continuously
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