Fundamental And Technical Analysis

We have all heard and read how much money we can make from Forex Trading, so what are the real rules and tips that will make us money from Forex Trading? Below we will uncover the real tips for Success. Below are the 5 Tips to Help make you big money, ... Continue Reading

Here is a little illustration that will show you the difference between risking a small percentage of your capital compared to risking a higher percentage. Here you can see that there is a big difference between risking 2% of your account compared to risking 10% of your account on a single ... Continue Reading

Most beginners underestimate the potentially devastating damage leverage can wreak on their accounts. Understanding leverage enough to know when to use it and when NOT to use it is critical to your success! Leverage is a very powerful tool but both old and new traders use it to destroy their trading ... Continue Reading

Besides amplifying your losses, leverage also has another way of killing you. It’s a much slower kind of death, though, kinda like being constantly exposed to high levels of radiation. Most traders don’t see it coming and by the time they notice it, they’re dead. This killer I’m talking about ... Continue Reading

Hopefully I’ve done my job and you now have a better understanding of what “margin” is. Now I want to take a harder look at “leverage” and show you how it regularly wipes out unsuspecting or overzealous traders. We’ve all seen or heard online forex brokers advertising how they offer 200:1 ... Continue Reading

Assume you are a successful retired British spy who now spends his time trading currencies. You open a mini account and deposit $10,000. When you first login, you will see the 10,000 in the "Equity" column of your "Account Information" window. Usable Margin You will also see that the "UsedMrg" ('Used Margin') ... Continue Reading

So what about the term “margin”? Excellent question my bright padawan learner. Let’s go back to the earlier example: “For example, in forex, you can control $100,000 with a $1,000 deposit. Your leverage, which is expressed in ratios, is now 100:1. You’re now controlling $100,000 with $1,000.” The $1,000 deposit is “margin” you ... Continue Reading

The textbook definition of “leverage” is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest. Example, in forex, you can control $100,000 with a $1,000 deposit. Your leverage, which is expressed in ratios, is now 100:1. You’re ... Continue Reading

Most professional traders and money managers trade one standard lot for every $50,000 in their account. If they traded a mini account, this means they trade one mini lot for every $5,000 in their account. Let that sink into your head for a couple seconds. If pros trade like this, why do less ... Continue Reading