Since I only know what I know, I have invited some other seasoned traders to share some of what they have learned over the years as well. I hope that you will find these posting helpful. As always take it slow, be patient and exercise discipline.




Subject: Money management

Hi Traders Friend,

I'll focus this post on money management which is one of the most important parts of trading. The first rule of money management is to preserve your capital. Simply stated, be patient and wait for a good setup according to your own strategy.

Professional traders only risk between 1% to 3% per trade. I personally risk 2% per trade. So how can you determine your risk and keep it between 1% to 3%? I personally use a website calculator at:

http://www.facebook.com/l/a4c62;www.forexhit.com/calculators/aec/allocation-efficiency-calculator.htm


You can pay for a calculator that you can download but the good ones cost about $ 100. Or you can use a free one on a web page. The choice is yours.

You need to know how many PIPs you may have to loose in order for the trade to be invalidated. This depends on your level of tolerance, your trading style, and your trading system. That is another lesson in itself so let's just stick to the task on hand. :)

So let's say you have $ 2,500 in your account and your risk for the trade is 50 PIPs. If you risk 2% of your account for the trade you can only trade one mini lot for that trade. If your risk for the trade is 25 PIPs with the same amount of capital than you would be able to trade 2 mini lots.

If you only made 25 PIPs per week profit, in less than a year you will double your account. Just 25 PIPs per week. You don't have to hit "home runs" every time to grow your account in a substantial way. Nor do you need to risk a large amount for every trade to grow it substantially either.

By keeping your risk low, when you get on a loosing streak (also called a draw down) you can take quite a few hits in a row and not do severe damage to your account and to your trading psychology. Every person and every trading system has draw downs. George Soros and Warren Buffett have had plenty of draw downs, but they keep their risks low and are still Billionaires.

I hope this quick post helps you to start understanding the basic principles of money management.

Alexander.

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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.

My Friends, as most of you know, I am not the biggest champion of indicators; however I do know how to use them. I am creating this post for my Friends who want more information about different technical tools. I hope you find this very useful. If you have any questions about anything you have seen here you know where to find me. Also you may check out my youtube page that has videos that I think are helpful for both newer and seasoned traders. http://www.youtube.com/user/TRADERSFRIEND.
Education will help you to do what you need to do with Forex. NEVER STOP LEARNING!!!!!

17 Moneymaking Candlestick Formations You Can Use Today Click Here

Fibonacci... it's a technical tool that can make you rich. Click Here

Double Tops and Pivot Points explained! Click Here

Traders Whiteboard #4 Click Here



For all of my Friends who were seeking to broaden your understanding, I hope this helps. Thank you for all of your kindness and support always.

Happy Trading My Friends!

If you have any questions, you may reach 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.

GJ (Weekly)

-double bullish divergence bar weekly
-bullish divergence kat daily + H4...
-setup angulation
-retrace fb 50.0%
adakah gj akan terbang dalam seminggu dua ni?..samo kita tunggu dan lihat..

update : dah terbang pun...keke..bdb weekly 143.91 dah trigger dan naik terus 350pip :D

GJ (H4)


Status : Not valid
Trend : Downtrend
Entry : Sell
Filter: BDB H4 + Divergence M30
TP1 = 141.76 (Target Hit!)
TP2 = 141.36
TP3 = 140.95
Stop Loss @ 143.06

GU (H4)

adakah symmentrical triangle dah complete?..samo2 kita tunggu nak lihat :D

Status : Not valid
Trend : Uptrend + Minor Correction
Entry : Sell Stop @ 1.5977
Filter: BDB H4
TP1 = 1.5950
TP2 = 1.5932
TP3 = 1.5891
Stop Loss @ 1.6012

Alt suggestion : Buy and target to 1.6103 (Target Hit!)

Is a divergence building in Apple?


See the latest video post on Apple and what apple is up to:




This is for those of my friend who have other interest than Forex. This is in no way a solicitation to buy any product, it is posted for your information only!

EU (H4)

Status : Not valid
Trend : Uptrend + Minor Correction
Entry : Sell Stop @ 1.4699
Filter: BDB H4 + Divergence H1
TP1 = 1.4658 (Target Hit!)
TP2 = 1.4626
TP3 = 1.4593
Stop Loss @ 1.4768