kricka's Posts - Page 2

What is your daily target?? in Experienced Traders Jan 24, 2016 at 20:02

I agree with having a long term target as well, like a yearly one. But that does not mean a daily or a weekly one should be overlooked.

What is your daily target?? in Experienced Traders Jan 22, 2016 at 23:52

FXtrader2010,that is a very long term approach having only a one year target. At least a weekly one is needed to have some control on risk management. I even will suggest a daily target and stop loss based, when things goes sour in the percentage of the trading account. How about 4% loss for the day and we call it quits? And furthermore a profit for the day of lets say 6% that will give some control over when we should not over trade regardless if we are in profit or loss.Traders interested in this kind of control can visit RMMRobot.com and read about some basic ideas on how to protect the tra...

DEMO ACCOUNT vs LIVE ACCOUNT in New Traders Jan 17, 2016 at 21:06

naturallycurly82,your remark about "Once you realize that you are your worst enemy, NOT YOUR BROKER, life is so much easier". It is very accurate in live trading. Trading is so much about our preparation and our own ability to cope with pressure and of course how we protect ourself in case our positions and account equity goes against us. To handle all this pressure is extremely hard to manage manually. I would say almost impossible. Why? Because we are emotional beings and in our self we are not robots. Better to hand over this to cBots and EAs and other robots to take over when it&...

lost in New Traders Jan 16, 2016 at 23:07

kayz,that is the reason I suggested to fund the first account higher then $100, the risk per position will be just too high and uncomfortable for a new trader. We are not talking here about making money but more about getting experience in a live trading account environment. The actually profit in dollars are of no concern when learning the platform and to test strategies. $500 is about right amount to have good risk management for a new trader. After getting the feel of his strategy and by trading in the heat of the market for a while, the stakes can be raised after that. Time will become mo...

RISK MANAGEMENT STRATEGIES in Experienced Traders Jan 15, 2016 at 03:31

Alex,it all depends on where the stop loss is located. If for example the stop loss is 20 pips (sell position) and only 5 pips under a major upper resistance level, I would definitely consider moving it above the resistance level. There might be a total higher risk of the account equity by doing this, but if it's not too high of a risk taking this stand it's wise to do it, because resistance levels are watched by everyone and protected and not that easy to penetrate. If the risk on the original position is 1% and by moving the stop loss to let say 1.3% risk, I would say that it is tota...

lost in New Traders Jan 14, 2016 at 23:56

dianajs,I totally agree with you that demo accounts for new traders is an important tool for learning the platform. A Lot mistakes can be sidestepped by knowing the ins and outs of the platform used. Also in the heat of the moment one has to know exactly what to do when it comes to the platform. CheckMate3 suggested $100 in a real trading account as soon as the trader feel somewhat comfortable with trading demos for a while is not a bad suggestion, the sooner the trader can feel out the real market with real money the better it is. However when funding the first live account the leverage used ...

Honest truth about forex..... in New Traders Jan 12, 2016 at 03:17

janettte,the problem is when it comes to too high of leverage, like 1:500, is if an inexperienced trader do not have position protection or account protection the whole account can be wiped out very quickly if he's caught up on the wrong side of the market.That is why it's so important to have a stop loss on every position and also on the whole account it self. I don't actually see high leverage as negative in trading but new traders do not grasp this until they have experience how important it is to be fully protected.Also there is a concern with gaps, overnight positions and week...

Is demo trading enough before real account? in New Traders Jan 10, 2016 at 02:19

I am an advocate of keeping the risk very small regardless of the stop loss used. It all depends of the funded account. That will determine the stop loss used according to proper risk management. If the account is funded with let say $400 the trader can place a trade of 0.01 lots with around 15 pips stop loss and still only risk 0.50% of the account in case the stop loss is triggered. $500 might bring up the stop loss to 20 pips and still only risking the same percentage of the account.

Is demo trading enough before real account? in New Traders Jan 10, 2016 at 01:28

It does not actually matter if the stop loss is 10 or 20 pips as long as the risk per position for a new trader does not go over 1% total of the account. Up to the trader to decide according to the account funded if he can have a narrow stop loss or a wider one.

Is demo trading enough before real account? in New Traders Jan 10, 2016 at 01:18

kieran,20 points stop loss is not small, I would say it is a good stop loss for new traders entering the market. The pressure of a fast moving market as you know 20 pips is just a minor movement. It will give them time to adjust to the movement of the currency pair and when they are ready they can lower the stop loss. Better to have a decent funded account so they can feel comfortable with the pace of the currency pair by choosing a stop loss around 20 pips and a total risk of the account around 0.50-1% on a position.

How to increase trading skills ? in New Traders Jan 09, 2016 at 23:37

Very easy to increase trading skills!This is a list of priorities, #1 is the most important one on the list.1. Learn the basics of how to protect the trading account with risk management.2. Have a stop loss on every position placed.3. Calculate the risk on every entry and how much you will lose in amount and percentage if the position goes against you.4. Have a predefined stop loss for the day and for the week and a predefined profit as well of the account.4. Do not panic if you have a bad trading day, another trading day is just around the corner.5. Do not overtrade if you are not in sync wit...

Is demo trading enough before real account? in New Traders Jan 09, 2016 at 21:57

royaltrades,the problem with an extremely small account is that one can not have good risk management. Taking too high of risk in percentage of the account when placing a position is the outcome even with the minimum of 0.01 lots and a narrow stop loss. The best is if a new trader would only risk max 1% of the account on a single position with a decent stop loss of let's say (20 pips). By having a funded account too small the risk can go way up beyond 1% and that just will put unnecessary pressure on the new trader.

suggestion for best broker to trade eurusd in Experienced Traders Jan 08, 2016 at 00:17

It all depends on what platform the trader like to trade on. There are several to choose from. cTrader, MT4, Currenex, Ninja Trader, Lmax and so forth. Also to take into the consideration is where one is located, and in which country one are a citizen of. USA citizens are not accepted with certain brokers overseas regardless of the platform used. Regulation is also something the trader has to think about. In smaller accounts it's not that important but bigger accounts this is certainly of concern. The spread the broker is offering is not the whole story there are other aspects to count in ...

Honest truth about forex..... in New Traders Jan 01, 2016 at 17:06

The leverage chosen when signing up for a live account is of concern especially for new traders. kierans suggestion on 1:100 is a good start. This will prevent taking too high of a risk on the trading account itself. However to be able to have good money management on every position higher leverage then 1:100 might be needed, if the funded account is under $1000.kmartyn suggestion of 1% total risk of the account at any given time is highly recommended. This means that if the trader have several positions in place at the same time the risk per positions has to be lowered. A good strategy is to ...

Is demo trading enough before real account? in New Traders Dec 30, 2015 at 23:16

Demo accounts are for the purpose of learning the platform and for testing strategies and to give new traders experience. Will it give the trader any proof of how good of a trader he is? No, only a real live account will, as there are so many other aspects coming into the picture when trading live. Just to name a few: the emotional aspect of knowing that real money is at stake, to not overtrade when making mistakes, to have risk management in place on both individual positions and on the trading account as well.Some info can be read at RMMRobot.com about risk management which should be regarde...

Tips and tricks! in New Traders Dec 29, 2015 at 02:14

Hi guys, there has been some talks about lot, volume sizing and risk management and how to actually calculate it. There is a site who is explaining this in a very good way. RMMRobot.com Also there are robots to download if you would like to try them out.

DEMO ACCOUNT vs LIVE ACCOUNT in New Traders Dec 28, 2015 at 20:42

Jaco Ferreira, your posting is very accurate and holds wisdom of being through different faces of trading. For new traders coming into the market they should practice patient and strict risk management. To go for making big money is of course a totally wrong approach. My suggestion is to keep a low risk profile on both individual trades and of the trading account as a whole. I will try to give an example here. 0.33% risk per trade of the account and a maximum of 3 positions opened at the same time, that will be a total of 1% risk if all 3 positions are in place. By practising this method the t...

DEMO ACCOUNT vs LIVE ACCOUNT in New Traders Dec 28, 2015 at 02:13

mlawson71, yes that is the way a live account affects us. We start thinking more about protecting the account and not to take too many unnecessary chances to jeopardize it. RMM protection of the account becomes suddenly more in focus and learning about how it works and how it can become an advantage in our trading. There is good info to be had at RMMRobot.com about this subject, how to protect the trading account regardless of the platform or the broker we use.

Good broker hard to find. in Experienced Traders Dec 28, 2015 at 01:45

Choosing a broker can be a challenge. It also depends on what kind of a broker we want to use. Market maker or ECN or direct access to the liquidity pools. They all have their advantages and disadvantages. Signing up with different brokers and trading on a live account is the way to go. Demo accounts show just half of the picture. In the long run trading live will show the trader if the broker is up to the task of being a good broker. There are many good brokers around however by testing trading a live account it will come clear to the trader which one's are the best to fit his preference...

Risk and Lot size Calculator (RLCalculator) indicator for MT4 in Programming Dec 22, 2015 at 22:06

Daniel, if you are referring to the link above for the cTrader cBot you can just visit RMMRobot.com and you can download. No registration is necessary and it can be run on both live and demo accounts without restrictions.

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Posts by kricka