Risk Management

Hello friend how are you?? At this time I wanted to share some knowledge to you all. Ehm .. The information will I give to you is about risk management techniques.

The reason I wanted to give this information is to protect you from the dangers of Forex Trading.

Ok .. us to the subject matter.


1. Cut lossIs an act of closing your position opposite the market price movement. Cut loss function to reduce the losses that we experience that will not cause greater harm.

For example, when we're opening a position on the Open Buy GBPUSD at 1.5000 price, then we certainly are looking forward prices rise above 1.5000, so we make a profit. We hope that the price move keposisi 1.5100 so that we can get 100 points profit. However, prices move opposite to what we expect. Prices moved down from the position of 1.5000 to 1.4980, and still showed a tendency to fall.

At this time we'd better close the position even though we had to lose 20 points (1.5000 to 1.4980 = -20 points). And, action is what is called the cut-loss losers closed position to prevent greater losses.

2. SwitchingIs an action that the same can be said to cut losses, will have a different switching with cut loss. The difference is in the closed position when we are losing, we opening new positions in the same direction with the market price movement.

With, for example equal to cut losses earlier, then we remember that we have closed our position at 1.4980 level and then we opened a new position or commonly called by the name of the Open Sell because prices tend to decline. Thus, if prices continue to fall until it reaches 1.4900 so we have a whole 20-point loss but earn a profit of 80 points (1.4980-1.4900 = 80) so that the total profit we still get 60 points.


3. AveragingThe following steps may be badly in need of extra capital to maintain our position has been opened which was moving against the market price. Let's take the example of the Loss Cut above case, if we want to take action averaging then we opened a new position but in this case is not like switching our positions are close losses and then open a new position as opposed to our previous position by reason prices have been move down.

In averaging we are not closing our positions have been opened or commonly known as the Open Buy and even we add many new positions open in the same direction of the Open Buy back!

We do it because the price has decreased so prices will likely rise again. And that's when we do Open Buy a second in the hope the price goes up even beyond the Open Buy our first so we get a double advantage.

Such risk management techniques can I give to you. Hopefully this information is useful for us all.

Forex Concepts

At this time I wanted to share with you a little knowledge about the basic concepts of forex trading.

Basic things you need to know in online trading are:
1. You should be able to determine the factors that can affect currency movements.
2. You should be able to read and understand the description of a graph.
3. You should be able to know about the trends that are happening in the market.
4. Always be wary of economic events that have a major impact on the global currency.
5. Doing healthy management techniques to achieve maximum benefit.
I think enough information so I can give to you. Hopefully this information useful for you to achieve successful lives. Amen ..

Look at the Economic Indicators Of a Country

Yes ... I think this is the appropriate title in my articles, because at this time I want to tell you how important an indicator of the state in forex trading.

But first you should know that the indicators that will tell you I was not an absolute thing that can affect a country's economic situation, because there are many factors that can influence it.

Ok.. we headed directly subject:
1. The Gross Domestic Product (GDP)
GDP is a measure that can indicate the total value of buying and selling goods and services that occurs in a country for one year. A trader usually focused on the two reports published in the months before the final GDP numbers. The report mentioned is a progress report and a preliminary report. GDP growth is always interpreted as the internal economy of a country.

2. Retail Sales Report
This report serves to determine the total receipts from all retail stores in the country. This measurement is derived from a sample of retail stores at any country.

3. Industrial Production Report
This report shows the change in the production of factories, mines and utilities within a nation. A trader using this report to measure the stability of the utility industry.

4. Consumer Price Index (CPI)
Consumer Price Index is a measure of changes in prices of consumer goods occurred in a country.

So the information can I convey to you. And, do not forget to always visit this blog .. OK! hehehehe

Some of the reasons why many traders are using Technical Analysis

In a decision a trader must be able to learn very well the political situation and economic conditions that occur in a country, whether that happened in the past and is happening at this moment. This, is done to predict the movement of a currency.

However, in doing this is not as easy as reversing the palm of the hand, because to do so very necessary to a knowledge and experience in handling and analyzing of data in large quantities.

Therefore, many a trader who uses Technical Analysis in the conduct trading activities.

In considering technical analysis it is necessary to understand its three underlying principles:

1. Everything that happens in a country will cause a currency movements.

2. Currency prices always follow the trend that occurred in the currency markets. This we can know by looking at patterns that emerged in the market all the time.

3. Currency price not only follows a trend in terms of looking at historical market data, but will continue to follow this trend in the future.

So the information can I give to you, hopefully this information can be useful for you.