Manage your risk / theforexscalpers.nl

Manage your risk

Manage your risk


Risk Management:

When you don’t have your risk under control at every trade, you simply open the door for the friendly but emotionals neighbours to come in and dominate in your house.
We promise it’s hard when you start trading at the Forex market.
Because it is an emotional market. It’s hard to stop trading emotionally once you’ve started or even admit you’re trading emotionally.
The game is about how much you lose or better said how you minimize your losses.
Not about your winnings. We all have that gambling friend that always talks about his big winnings.
He never tells you about the day he lost $1000 on one hand of Black Jack does he?
A good example that shows you how important it is to minimize your losses.
You don’t want to lose that $1000 you’ve won with 100 hands on one hand do you?

So set your losing limit before you trade.
This has to be an amount that your completely OK with losing.
If you lose it’s just another day at the office.

Why Risk Management is so important:
Risk management is vital for success, safety and sustainability in Forex trading.
Risk management won’t let you lose more on a trade than your comfortable with.

Even if you are one of the best traders or you have this unique talent to see the right spot to step in a trade.
Without good risk management you will never be a successfull trader on the long term.
Basic knowledge is to always go for more PIPS as your willing to lose.

manage your risk

Want to know more about trading in forex / forex mistakes or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

Forex mistakes / The most mistakes made / theforexscalpers.com

Forex mistakes / The most mistakes made.

Forex mistakes / The most mistakes made.

No one likes losing money. Even the richest of the rich hate losing money.
So fear will always be a part of this game. Key is to find a way to switch it off and believe in yourself!

The Forex market is like any other business, most business aren’t profitable in the first years so don’t expect a miracle starting at the Forex market. However, with the right skills and mindset you can be successful in a few months.
Don’t rush success. It’s like surfing. Learn to ride the waves and fear will be in your past.
Once you know how to ride the waves of the market or the sea you have little to no fear to take them on!

 

-Revenge / Forex mistakes:
An emotion that is as old as Santa and the pope combined. After a losing trade it’s pretty normal to feel revenge. You want to make up for your losses. People that have been to casino’s before probably know this feeling really well. It’s also just the way our fantastic brain works. To protect yourself keep in mind there is no such thing as a guaranteed winning trade. So don’t take it personal when it is not your fault at all. For example: You’ve just made a trade GBP/USD. You’ve bought a lot USD. An hour later something like 9/11 happens again…. Obviously the position of the USD is going down. Was their anything you could do about this? No! Unless you work fort he CIA or something like this. Than again if you have a job like that you probably shouldn’t focus on trading. Point is. Sometimes there is just noting you can do about it. Why would you be hard on yourself and try to make up for it. That’s the point were emotions are getting involved and you start losing more.
Forex mistakes
Revenge can lead to more negative outcomes. So don’t punch your screen or throw away your mouse or phone (Yes I’ve been there during my poker career).
It doesn’t help you at all. In fact it puts you down even more. Now you’ve lost money on a trade and a broken phone that will cost $200 to repair. So who are you kidding?

=Greed / Forex mistakes:
Greed is arguably the most dangerous of all emotions. When you experience an upswing or streak of winning trades it can give you that wonderful feeling that you are the king of the world. The feeling of: I told you so! Maybe you think, oh well, this is just so easy let’s take some more risk. I’ve proven to right all the time in the past. Why would I be wrong this time…? The human brain simly want more and more of that success. This is were you need to stay humble, take your winnings, give yourself o pad on the shoulder and move on to you next winning trade.

There is the possibility to add more money to a successful trade. This means higher the initial risk as well. If you do this just out of greed your making a wrong move. If you hae a good reason for doing so than you’ve made the right decision.

When your account balance goes up doesn’t mean the size of you trade needs to go up as well. When you know your goal and when you’ve reached it you probably won’t be tempted to risk your whole account blindfolded.

The avalanche effect of greed will occur when you hear success stories of other traders that make you want to have the same success as well. Always remember that, even good trader, will only make 80% winning trades. Meaning he losses 20%. These 20 out of 100 losing trades can very well may be all in a row. Does that mean you’re a bad trader? Not if you stayed with your plan and strategy.

Forex mistakes

-Risk Management:
When you don’t have your risk under control at every trade, you simply open the door for the friendly but emotionals neighbours to come in and dominate in your house. We promise it’s hard when you start trading at the Forex market. Because it is an emotional market. It’s hard to stop trading emotionally once you’ve started or even admit you’re trading emotionally. The game is about how much you lose or better said how you minimize your losses. Not about your winnings. We all have that gambling friend that always talks about his big winnings. He never tells you about the day he lost $1000 on one hand of Black Jack does he? A good example that shows you how important it is to minimize your losses. You don’t want to lose that $1000 you’ve won with 100 hands on one hand do you?
So set your losing limit before you trade. This has to be an amount that your completely OK with losing. If you lose it’s just another day at the office.

-Organized trading / Forex mistakes:
Clarity and a good organization are the two aspects that your success will depend on. What do we mean with organized? Stick to your plan and read your trading journals. Remember it is not a casino where you just gamble on black or red. Forex is about knowledge and having a plan and stick to it.

Forex mistakes

 

-The pitfalls / Forex mistakes.
99% of the traders make mistakes. So here are the most common mistakes for you so you hopefully won’t make the same mistakes.

-Losing trades / Forex mistakes:
Losing trades are just another day at the office. It’s just that simple. Don’t let them get to you. Every trader on Wall Street or trading from his home office will face losing trades. A trader with a 80% success ratio will still lose 20 out of 100 trades he makes. Keep your risk tight, safe and disciplined.

-Losing money / Forex mistakes:
Unfortunately 90% of all traders are losing traders. They lose their confidence, start doubting themselves. This encourages them to pay for bad Forex services or even desperately let other “winning” traders trade on their account. Again, there are many people with no winning track record willing to help you for a certain price. Don’t be desperate. Your will land power is all you need!

Most important reason for repetitive losing traders/ Forex mistakes:

-Chart Loonatic:
There are lots of fundamental impacts that could easily distract a trader. Also there are a ridiculous amount of trading systems and trading software, which have lots of indicators and templates etc. As a trader you’ve got to filter these indicators and narrow them down to the ones that matter the most for your own strategy. WARNING: This could be difficult for a beginning trader.
Forex mistakes
It’s not necessary to spend hours and hours behind the screen analyzing the news or charts.
Keep it simple and stick to what you need. Keep it organized.

-Over-Trading:
Most traders lose money simply because they trade too much. We call this over-trading. Over the years we have learned that traders succeed on their demo account but once the real game begins they start losing. Once your real money is on the line your emotions are kicking in. Prove that emotions can kill your account. Over-traders purely trade on emotions.

Everything comes down to your technical skills and not your emotions. So try to create an environment with little to no emotions for yourself. This is done be being organized and having a plan.

-Why Risk Management is so important:
Risk management is vital for success, safety and sustainability in Forex trading. Risk management won’t let you lose more on a trade than your comfortable with. Lots of traders forget about the chance of losing on a trade. Ask yourself this question: “Why would you take more risk than your comfortable with?”

Even if you are one of the best traders or you have this unique talent to see the right spot to step in a trade. Without good risk management you will never be a successfull trader on the long term. Basic knowledge is to always go for more PIPS as your willing to lose.

-Aim for the money not for the PIP:
Remember Forex is a job not a casino. Traders who approach the Forex market as a gambler or as an addict to money won’t make the right decisions. He will start thinking irrational and make Forex mistakes. So don’t think of in dollars but think in PIPS.

Let me break that down for you. When your mind is on the money and you think in dollars your risk management won’t work most of the time. There is always this voice of the devil in your head saying “What if…” Or “Maybe this or that will happen”. Stop thinking like this. Get these dollar signs out your eyes and start think like a real trader. It’s not that easy as use a couple of big lot sizes and flee the scene when your positions are positive. So always calculate your wins and losses in PIPS. Always trade with more or less the same volume. You trading plan has to have PIP goals and PIP risks. How many PIPS do I want to win? Or how many PIPS do I want to risk with this trade?

-No Game Plan:
Most common made forex mistakes is not having a game plan at all. Traders just start out of the blue without a real strategy or plan. If your watching sports, do you think the athletes don’t have a game plan? I bet you a $100 that every team or individual athlete has a game plan. Don’t think like all the other traders “I’m going to make my plan after I’ve done a few trades”. You will end up with an empty account.
Right thing to do is keep track of your trades. Make reports of your trades (a trade journal) so you can look back at what you did and maybe change your tactics a little bit. Organized work like this will help keeping your emotions out of the game as well.
Remember that the game plan you started with doesn’t have to be the winning one, so call a time out, look back and adjust to a winning game plan. Pretty cool right! You can be the coach of your own professional sports team!

Forex mistakes

“When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.’” – Marty Schwartz

Want to know more about trading in forex / forex mistakes or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

Forex course

Forex course

Forex course

Forex Course

We have developed a strategy that makes us more than 80% profitable.

Because in the forex world you really learn to fall and get up.
Every beginning is difficult but in the world of it all went.
Perhaps you have already lost a lot of money on the market?
And now you want to invest more in yourself.
Perhaps you have a dream a dream that we also had to be able to live from your trade, and to live well!

With your will, patience and trust we can make you a successful trader with our Forex course Trading is mainly about reading, observing, analyzing and striking.

An important reason for the loss of approximately 90% of traders is that they are too lazy to do the work that is necessary to be successful.
Another reason is that they do not have a trading plan.
And a trading plan is so important to get and be consistent.
They guess, gamble and hope.
Actually more gambling than they did.
Either way, if you are willing to work hard and disciplined, you could once more belong to those 10% traders who are very Forex course successful with the Forex course.

Forex course

Forex course

“When I became a winner, I said, ‘I figured it out, but if I’m wrong, I’m getting the hell out, because I want to save my money and go on to the next trade.'” – Marty Schwartz

Want to know more about trading in forex or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at  IC MARKETS.

Tips trading forex

Tips trading forex

Tips trading forex :

– Don’t forget to place your Stop-loss at the daily and 4H chart at the HH-LL-HL-LH marks.
– Not over two trades at once.
– Keep track of your daily trade notebook and be honest with yourself.
– Think in terms of percentages and PIPs.
– Always save your work and stay organised.

Tips trading forex

Tips forex trading.

The quote “Your as good as your last trade” is partly true, but a professional trader who strives value and development has to look back and analyze previous trades.

If you’ve traded with a demo-account in the past, you should be aware that a big loss is recovered by one simple click on a button. That’s not how it works in the real world. It’s not our nature looking our faults straight in the eye, but this is something you need to lean. That’s the only way to work on your flaws.

Assessing your performance will tell you a lot about you and what trading style suits you best. Ask yourself the following questions:

With which pairs do I perform best?
Which pairs do I perform are my losing ones?
During what time period of the da yam I most profitable?
On which days have I lost the most?
On what days am I most profitable?
Am I more successful when long-term trading or do I perform better scalping?

Fact is that 70% of all traders can’t draw their technical analysis correctly.

Setting up your trend lines or key levels inaccurately will make you a failure even before entering the trade.

Don’t fear, Thanks to our modern technology we are capable to cut of the rough edges. By taking screenshots before and after the trade we can research if we acted correctly.

 

Tips trading forexTips forex trading

“The easiest thing to do is prepare. If you don’t, on behalf of the other market participants, we thank you.”

Best broker: IC MARKETS.

Risk and Reward Forex

Risk and Reward Forex

Risk and Reward Forex

Risk and Reward Forex

Traders have no business trading if risk/reward analysis is not at the top of their concerns.
If a trader has no idea of the potential profit return on any given trade relative to the initial risk of taking the trade at all, his long-term profitability is in question.

Risk and Reward Forex
Of course, for every trader, the best case scenario would be to minimize the first and maximize the second.
But how do you get a handle on the potential reward in any investment and the risk you might be taking on?

Technical analysis – what’s popularly called charting – can help traders evaluate both risk and reward.
The technical indicators used to read the charts will give you the simplest kind of picture you can get of a currency’s performance.
Simply by placing your support and resistance and by looking at the past performance of a currency you can get a record of its closing price over time.
Once all of the elements are in place for an analysis, you can calculate your pips difference and verify, depending on the trend of the market, if you will make more profit or loss and if it is after all worth the position.

For example, if the market is in a bullish situation, you need to have a higher pips difference between your buy-stop order and your resistance price than between your support price and your buy-stop order so that your reward will be maximize and your risk will be minimize.
In each case, upside (bullish) or downside (bearish), the tools of technical analysis will tell you important things about risk and reward. Don’t trade without them.

Risk and Reward Forex

 

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How to manage your risk Forex

How to manage your risk Forex

How to manage your risk Forex

How to manage your risk Forex

Risk Management -How to manage your risk Forex
Once you have the facts it is decision time.
You can choose to do nothing or seek to reduce the exposures or to hedge them in whole or in part.
The unforgivable sins are to fail to consider the risks or fail to act on any decisions.
The risk culture of your business is critical and must be established at the most senior level.
Above all it calls for honesty. Too often individuals are criticized for decisions that, at the time, were in tune with the organization’s perceived appetite for risk. But it is never easy to set down effective guidelines and the range of exposures for even a simple transaction can be extensive.

For example, an exporter needing to borrow to finance a sale in foreign currency may have to consider counterparty credit risk, funding risk and interest rate risk. The permutations are endless and the costs of hedging transactions to reduce or eliminate every possible exposure could potentially swallow any profit from a deal.

While losses are likely to be quantitative, the potentially infinite number of risk combinations means that the skills needed to make good decisions are usually qualitative. Even a computer programmed to consider every conceivable permutation of risks needs to be told what level of exposure is acceptable. Any program is only as good as the parameters and data fed into it by people who have themselves been conditioned by experience.
But what of the improbable, the wholly unexpected or the never-seen-before?

Effective risk management requires thinking the unthinkable. This does not in any way lessen the great value of the many sophisticated risk-management systems available. The problems come if people start to think of them, and the models they are based on, as infallible.
It is also common for the development of control systems to come after any new risk-related products. Be careful not to bet the business until the exposure is known. To be in business you must make decisions involving risk. However sophisticated the tools at your disposal you can never hope to provide for every contingency.
But unpleasant surprises should be kept to a minimum.

How to manage your risk Forex

Ask yourself… -How to manage your risk Forex
1- Can the risks to your business be identified, what forms do they take and are they clearly understood – particularly if you have a portfolio of activities?
2 – Do you grade the risks faced by your business in a structured way?
3 – Do you know the maximum potential liability of each exposure?
4 – Are decisions made on the basis of reliable and timely information?
5 – Are the risks large in relation to the turnover of your business and what impact could they have on your profits and balance sheet?
6 – Over what time periods do the risks exist?
7 – Are the exposures one-off or are they recurring?
8 – Do you know enough about the ways in which you exposures can be reduced or hedged and what it would cost including the potential loss of any upside profit?
9 – Have trading and risk-management functions or decisions been adequately separated?

 

Where to place stops – How to manage your risk Forex
We stop out of a trade when we no longer want to hold onto that particular position.
The question that arises is: WHY do we want to get out of that trade?
There can be 2 reasons for stopping out of a trade.
EITHER the market tells us that our intrinsic View or Directional Assessments itself was wrong.
OR we stop out of a trade (even if we still believe in our basic Bullish or Bearish reading) because we think we can establish another position at a better level than the previous one.

The effort should be to choose a meaningful SL which is neither too close to the entry to get activated soon after entry (only to have the market go back in the original direction thereafter), nor so far away from the entry that we have no time or space left for follow up action.
The difficult part about the paragraph above is that it requires us to have a Trading Plan or Strategy and to choose our Entry much more carefully than we tend to do, in accordance with that plan.

Follow through action required we come back to the reasons for wanting to stop out. In the first case, when our directional reading has been proved wrong, we should look to enter into a trade in the opposite direction – a case of Stop-and-Reverse (SAR). It needs to be pointed out here that it is NOT necessary to SAR at the same instance and level all the time. If you are an intra-week (or longer) trader, you can enter into a reverse trade after stopping out of the original trade, allowing yourself time to reformulate your strategy.
How to manage your risk Forex
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