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.

Some Reasons Why a Person Want To Become a World Currency Trader.

At this time I want to talk about the possibilities available to yourself about why you want to be a world currency traders.

1. A market that will never close
There is a market in the world in general has the operational time limit, but this does not apply to the market value of world currencies. Because the forex market open 24 hours a day, or in other words can be said to open all the time.

2. Low Cost
Unlike the general market, currency market does not require relatively expensive cost, because the foreign currency exchange market is a wholly electronic market many of the traditional trading costs are eliminated and you are in affect paying reduced to nothing more than the spread .
3. The Ability To Trade On High Leverage
In the currency markets as a trader can quickly and easily to expand its business at a higher level because the forex market a trader can benefit greatly.

4. Similarity Price
This rarely happens in other public markets, but the currency markets this is often happening, so many traders who want to participate in this trade. This is due to the price you see and the price you pay are the same.

5. The Chance To Profit In Both Rising And Falling Markets
In the Forex market always involves two currencies so that if you are down on one currency then you are up on the other. There is therefore always the potential for making a profit whether the market is rising or falling.

The Meaning Of Forex

Welcome to newbie-learningforex.blogspot.com
At this time I want to share knowledge on what the meaning of forex.
Forex is a market that enables the buying and selling currency. So if you want to follow forex trading is a good idea once you understand about how to start forex trading, this is done so that you do not have the bad luck is not very fun for yourself.

For not a few people who experienced frustration after following this trade, but not the least are those who experience the joy of the job is very tempting.

So the forex can be said as a very unique market, in an instant because the forex market can alter a person's life, whether to change into something pleasant and not very pleasant.
Ehm..... You should know that forex is unlike any other financial market, because investors can respond to money-value fluctuations caused by economic, social and political events at any time and any where.

Finally I say thanks so much for your visit.

Trading The Same With Golf??

If we look carefully the actual investment by the game of golf has some similarities. Really? If you do not believe it please read the article below.

1. Emotion.
Emotion is something that is inherent of a broker or trader. In trading you should be able to control yourself so that you avoid the danger of loss of profit

2. Learn from the Masters
A beginner golfer can learn from the master golfers like Tiger Woods. This is done to find out how to hold the golf club right. Similarly with beginner investors. But of course you can not learn with a Tiger Woods but you can learn by famous investors like Warren Buffett, Peter Lynch and George Soros.
3. Be Wary of Friendly Advice
Perform an examination of the validity of the claim. This is done to guard against your own friends. Because in this case can become a friend of the opposite.

4. Find a Good Caddy
If the word is often known golf caddy, the people who can serve us. So did the caddy found on trading. But the caddy found on trading it should have extra capacity, ie it must be able to give suggestions that are good for our business continuity

5. Watch for Red Flags
Like golf, the trades are also red flags. However, there is a red flag on the trading is not a sign to show where the holes are, but the red flag that meant in trading is a sign of danger.

6. Play the Percentages
Do trade is always a calculated, so that later on you do not feel some remorse for what you do.

7. There Are No Mulligans
As in the game of golf there are no second chances. Therefore you are required to formulate a good strategy. However, if you do not plan your strategy, a good idea to ask advice from an expert in the field.

8. Always practice
Tiger Woods can become a master golf because he often practiced. Therefore, it is strongly recommended for those traders who are beginners like me to practice more often, in order to become a master trader, or to simply become an expert in this field. hehehehehehe

9. Learn from Experience
Often times we hear that the failure is the best teacher that ever lived. This was also true in the game of golf as well as trading. If we take the point of view in the game of golf, the first improvement we do is how to hold the right stick, but the trading improvements we first do is how do we can formulate an appropriate strategy patterns in situations and conditions that we face .

10. Sophisticated Equipment Can't Guarantee Success
Any sophisticated golf equipment that we have will never guarantee our success in the golf game. Similarly, trading, any sophisticated equipment we use can not guarantee our success. So how can a little so that we guarantee to get a success? Once again I want to say to you to make the best possible strategy, because we'll never know what will happen later. And, this is a function of the strategy we have made earlier, namely to make a buffer to maintain our position.

This information can I give to you, and apologize if any mistakes the word, because I was a newbie

How To Forex Investing

At this time I want to share information with you about things you should look when you are trade by forex:
1. Baby Pips:
A pip is the smallest unit of price for any foreign currency,

2. Forex Glossary:
There is nothing wrong you must first know and understand the terms commonly used in the forex. This is done so that you are not wrong in interpreting the term in forex trading.

3. Investopedia:
This online financial encyclopedia contains an extensive 10-part article on forex investing. Therefore, you must have enough information from Investopedia.

4. National Futures Association(NFA):
NFA is an organization that manages all markets depends on future cash flow. NFA can assist you in developing an appropriate strategy with you.

5. Commodities Futures Trading Commission(CFTC):
CFTC has similar duties with the SEC (Securities and Exchange Commission). Through the CFTC you can learn quickly what to avoid in your learning curve through a detailed forex advisory that offers information about other resources as well.

6. Martket Traders Insitute (MTI):
Martket Traders Institute (MTI) is a place where you can learn to understand the forex trading for free