Well, I am ready to talk about a biggie, the margin. What is margin? A margin is money we put up as collateral to our broker to cover credit risk on the money the broker has lent to us. A margin gives you leverage (magnification). Leverage is an amount of money a broker lends an investor to buy securities, in our case currency.

The thing that makes margins/leverage so attractive is that it can increase your potential returns). In a 50:1 ratio, for every $1.00 you invest your broker is extending $50.00 to increase your buying power. In a 100:1, it is $100.00 for every $1:00 you put up, and so on. Whoo Hoo! Nice broker, huh??????? The thing about leverage is it can either work for or against you. For most traders, it works against them, that is why your broker is willing to give it so freely. The expectation is it will help you deplete your account more quickly.

Forex is a zero sum game, for every penny you lose, someone else gains it, and it is usually the one who has the deepest pockets and can most afford to ride the volatility waves; so brokers can afford to allow you to over leverage because they have much deeper pockets and usually they win.

I have to mention this, there are some brokers that offer up to 750:1 ratios, stay away from them. I would not trade with a broker who offered more than a 400:1 ratio and believe me 400:1 is gamblers stakes. You work too hard for your money to willing give it over to the market.

How do you protect yourself against the downside of leverage???????

Decrease the size of your leverage. It will take away from that ideal wind fall, but it will also keep your account from being depleted fast.

If you are new to Forex, my advice is a 25:1 or 50:1 ratio, and decrease your lot size. Most of us don't start our accounts with $50,000, and if you are fortunate enough to, then you definitely don't want to give it to the market.

Remember leverage ONLY works for you if the market is moving in your favor. If it moves against you, then it magnifies your losses.

Happy trading!


This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Pips are percentage in points. In other words it is the smallest amount of a currency, (Kinda like a penny in the US). In this example .8891 the pip is the 1. If you sold a currency at .8891 and it moved to .8861 then you have a gain of 30pips. Or in the dollar/yen pair 108.93 the pip is the 3. The pip is the last number after a series of numbers behind the decimal point making it the smallest amount of the currency.

Why pips? Pips are how traders get paid, it is the way profits and losses are calculated.

How to calculate pips:

If I sold a currency at .8750 and it went up to .8800, then I would subtract the smallest number from the largest number to figure out what my profit or loss was. In this case:

.8800-.8750 =50pips lost

Now if I sold at .8750 and the price fell to .8700 then it looks like:

.8750-8700=50pips gained (then I get paid)

Always subtract the smaller number from the larger number whether you buy or sell.

You can obtain more in-dept information on pips from your broker. This is just a quick overview. Basic information like this from your broker is fine, it is just strategic information that you have to be wary of.

Happy trading, Have a great life!!!!!!!


This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Forex is short for Foreign Exchange, they took the for in Foreign and the ex from Exchange to created the word forex. Forex is a place to exchange one currency for another. The Forex market is larger than all of the other stock and futures and commodity market of the world combined. According to the Bank for International Settlements, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion.

The Forex market, unlike other markets is an OTC (over the counter market) and has no physical location, which means that the entire forex market is run electronically. It is available 24hours a day Sunday evening to Friday afternoon EST. With a computer, a little capital, and a high speed connection, almost anyone can become a forex trader.

What is the lure of Forex? Lots of actions, and quick gains. It is a fast pace, exciting environment that can keep you glued to the computer monitor for hours.

New World Currency Video New World Currency

As a retail trader the odds are stacked against you, due to limited capital, market manipulation, and just lack of information.

You need to be aware that 90% of all first time traders lose all of their capital.

There are reasons for this:

Lack of information; The stuff given to you by your broker will eventually get you killed, if you don't understand how to properly use it. They only give you enough information to make you confident enough to get your tail handed to you. Get on youtube, where real traders are making videos that can help you better understand what is going on. Or other sites like this one that are made by real traders who want to give something back. You must invest in your own education, otherwise you will be just another sheep to the slaughter.

Over extending on too little capital, is one of the biggest mistakes new traders make. You start a $ 50, 000 practice account where you are trading full lots, then you open an account with $2,000-$5,000 and you continue trading full lots. It is a recipe for suicide. On that little capital, you should only trade mini-lots.

Broker trading against clients. Many broker trade against their customers stacking the odds heavily against their customers for big paydays.

Never add to losing positions thinking that the market will turn around in your favor and you are going to get a windfall. 99% of the time that is a false expectation that will break you real fast!

Happy Trading!!!

If you need me you can write me at:


TradersFriend@yahoo.com




This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

So you wanna get paid???? Well Forex is a great way to do it. This site is to try to give you some insight, so that you can avoid many of the pitfalls new traders encounter when they begin trading.

There are two really good ways to learn how to trade.

#1 You can go broke, like I did, or

#2 Learn from someone who knows how.

When you go broke trading, you do one or two things, quit or learn to trade, which is what I did.

When you fall in love with trading, you will find it is as addictive as a drug, but failing in the market repeatedly makes you feel like you are going to die.

Not to worry, you can learn to trade successfully.

#1 You must be disciplined,

#2 You must be patient

#3 You must K.I.S.S. (Keep it simple Sexy)

Trading isn't hard, just tricky, It is tricky because Trading goes against all of your logic and instincts, and makes no common sense, but not to worry, it can be almost mastered, I say almost because there are no fool proof systems of success in the market, all you can do is put the odds in your favor as much as possible.

While I am tempted to tell you everything in this introduction, we will go slowly.

Ok, I can't help it. Just a little advice along the lines of "trading isn't hard, just tricky";


The market never makes common sense to your mind or emotions, which keeps
you thrown off. Wait until you can clearly see an opportunity where you truly have
the odds in your favor and it may only happen twice a day, if that. This is physiological
warfare, a total mindfield(mind game) in which you have to have nerves of steal
and the ability to outwit those who make their living trading against you.

Thank you for visiting, please check back for lessons that can help you trade better.

If you have any Questions, please feel free to write to me at •*¨¨*•-:¦:-•* -

Tradersfriend@yahoo.com.

I will do my best to help

Get 10 Trading Lessons FREE Click Here


This blog is not in anyway an enticement or solicitation to trade in the Forex Market. These tips are for informational purposes only and are not to be substituted for legal advice or council. I have written this blog in hopes that it will help you to avoid some of the terrifying pitfalls I had in the Forex Market before I learned better.

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you need for living expenses and cannot afford to lose.

EU (H4)

Status : Not valid (SL hit)
Trend : Uptrend + Minor correction
Entry : Fractal H1
Filter : BDB H4 + Bearish Divergence H1
Sell Stop @ 1.4535
TP1 = 1.4445
TP2 = 1.4396
TP3 = 1.4348
Stop Loss @ 1.4603

GJ (Daily)


Kemungkinan wave 2@B dah complete dengan subwave a,b & c.

Reason :
- bullish divergence bar kat daily pun dah ado
- AO bullish divergence kat H4 pun dah ado gak
- sekiranya AO daily akan menunjukan perubahan momentum iaitu akan bertukar kepada warna hijau, reason utk perubahan trend kepada uptrend lagi kuat
- jika price break lower wave (iv)..kemungkinan wave c pada 2@B belum lagi complete..

GU & GJ (Daily)

Dah lama tak counting ni...keke. GU & GJ ni aku rase dah complete wave 1 @ A dengan 5 subwave. so skang ni masa utk major correction 2 @ B dan kemungkinan complete di line-line dalam chart diatas. so utk saki baki 2009 ni...prefer sell kot utk longterm..dan mungkin trend akan berubah semula pada awal 2010 utk permulaan wave 3 @ C. Sekadar pemerhatian sahaja... :D