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One reason why lose money in investing is by not understanding the risk associated with an individual trade.  A trader needs first to understand how much money they are willing to risk based on their account size and current financial situation.  Forex allows one to customize the risk for an individual investment to where you are trading only a 250 dollar trading account and yet you can still have smaller risk.  For example if you were trading the eur/usd in www.interactivebrokers.com which is an online broker you have a 40:1 leverage.  If you were trading 10,000 worth of currency you would need a 250 dollar account and that also means that each point of movement would be worth 1 dollar. A normal risk amount would be 10 points or 10 dollars.  We would try to risk 10 points to make 2-3 times per trade.  There are many opportunities during a 24 hour period where one could take advantage of this price movement.  Technical systems are important but discipline and controlling a trader’s emotions are much more.

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