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Have a plan and stick to it
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chrish9070

Member Since May 11, 2013  45 posts Chris (chrish9070) Apr 10 2016 at 18:42
Money management is the greatest tool of all for new traders

#forex #trading #pips #markets #finance Do you want to learn to trade all types of markets with proper money management, risk reward trades and excellent monthly returns? Then check out this below.....

Just thought Id write an email after last weeks trading to see if people can cope and manage their losing trades correctly.

Do you have a set risk reward setup, calculate your trades correctly so you not always just entering at 0.1, 0.5 or 1.0 or whatever size you trade. Do you calculate the size of your account and work out what lot size you should be trading based on your stop loss, risk amount and account balance. If your not then you really should be. People ask for a win/loss ratio on trades and this really does not matter or have any influence on how much money/percentage return you make each month and year. You can actually lose almost 60% of your trades and still make an excellent return each and every month. So I just want to remind all you traders, make sure you have a plan and stick to it DO NOT deviate from this. Working this way means as you have a few losing trades your risking a % of your lower account balance each time, and as the winners come and the account grows your risking a % of the larger account and this is what allows it to grow.

So stop thinking about how many losing trades you have, simply make sure that your risk reward is correct and if you can get anything above 50/50 then you will guarantee to make money and a good living if you can do this consistently.

Next I want to look over a couple of charts that you may want to look at yourselves and also show the kind of thing we look at every time in our webinars to plan our next few trades in the week ahead. Also dont just enter a trade because price has hit a certain area, get some confirmation of price action 1st, this will save you entering and guessing of just anticipation, this is not trading but simply gambling if no predetermined risk.

EUR/USD https://clip2net.com/s/3wJvUc1 weekly view

AUD/USD https://clip2net.com/s/3wJxgvT daily view

GBP/USD https://clip2net.com/s/3wJzf7p daily view

GBP/AUD https://clip2net.com/s/3wJBe2e daily view

Do you look this deeply into your trades before entering them? Do you then calculate your risk reward ratio? Then calculate what size you should be trading on your account size and what risk you should risk on each trade? If you are not doing these things then your going to get swallowed up in the forex world and find it very tough to make money trading these highly volatile markets.

If this is something you would be interested in, not going for 20-30 or 40% a month, but trading exactly how money managers and funds trade looking for great reward trades and making 4-10% a month (10% on good months - not often) so achieving apprx 50-60% a year entering trades 10-15 minutes a day then we can offer that.

Wish you all a Happy Trading week and should you have any questions please email or skype me with the details below :-


Regards

Little John

GiftedFx
mlawson71

Member Since Dec 11, 2015  1487 posts mlawson71 Apr 12 2016 at 09:30
Sticking to one's plan is one of the most important lessons new traders learn. Doing otherwise is usually a recipe for disaster.

vic84

Member Since Jun 07, 2013  17 posts vic84 Apr 13 2016 at 06:13
I think having plan is very good for trading but sometimes you have to be versatile and should make changes in your plan according to market conditions.

idimitrov

Member Since Apr 09, 2016  421 posts idimitrov Apr 13 2016 at 06:17
Sticking to a plan is something essential. You know exactly what you did and that gives you the opportunity to analyze it and be better next time :)

mlawson71

Member Since Dec 11, 2015  1487 posts mlawson71 Apr 13 2016 at 08:52
idimitrov posted:
Sticking to a plan is something essential. You know exactly what you did and that gives you the opportunity to analyze it and be better next time :)


Indeed, especially if you make a mistake somewhere or if the plan itself is flawed. One should always take that into consideration too.

idimitrov

Member Since Apr 09, 2016  421 posts idimitrov Apr 30 2016 at 20:52
unfortunately not many traders have a journal

RedRhinoFX

Member Since Nov 09, 2013  395 posts Frank (RedRhinoFX) May 01 2016 at 07:18
Follow through from a manual trader is hard enough. I coded those risk management rules into ATS and now let the probability play out the P/L for me. Check out my ATS12 under my profile. Fixed Risk Per Trade always.

mlawson71

Member Since Dec 11, 2015  1487 posts mlawson71 May 03 2016 at 09:52
idimitrov posted:
unfortunately not many traders have a journal


True, I didn't have a journal for the longest time, it didn't even occur to me that I should have one.

jhonix

Member Since Dec 06, 2016  37 posts jhonix Feb 26 2017 at 06:58
mlawson71 posted:
idimitrov posted:
unfortunately not many traders have a journal


True, I didn't have a journal for the longest time, it didn't even occur to me that I should have one.


Exactly, the trading journal is a great tool to help you become a better Forex trader. Be sure to record all your operations and the reason you opened them. Later on you will be able to see this and evaluate your operations and observe how far you have progressed. I have seen my trading records and have been able to realize how much I have really grown as a forex trader.

BaldoN

Member Since Feb 12, 2016  522 posts Baldo (BaldoN) Feb 27 2017 at 09:54
Hello,
There was a saying I have found in forums: 'Plan your trades and trade your plan'
Simply like that :)

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