Forex Trading Guide                       Bookmark This Page

Forex trading Navigation



Understanding Forex Indicators
Forex Alert
Forex Trader
Learn Forex Trading
God And The Forex Market
Acd Mark Fisher Forex
Easy Forex Strategy
Transocean Sedco Forex
Eurogest Forex
Forex Daytrading Alerts
Currency Forex Online Trading
Chat Forex About Trader Gurus Good Or Bad
Forex Forecast Software
Forex Point And Figure Charts
Forex Trading
Top Forex Sites
Forex Oil Hyip
Forex Brokerage Firms
Forex Broker
Forex Education
Learn To Trade Forex
Capital Forex Market
Swiss Forex Brokers
Forex Rules And Malaysia Insurance Company
Forex Advisor
Forex trading Links

2005 Best Seller!

forex strategy explained
Buy it now

Best Forex trading products


MyUsgrants - Government Grants Exposed.
How you can easily Get Your Hands on $50000 or more in Cash that You won't have to pay back Ever.

Swing Trading, A Scientific Approach.
Learn how to apply Science to trading stocks. The entire Universe is governed by science, the markets are no exception.

Scalping The E-Mini's.
Learn how to make a living scalping the e-mini futures market.

Forex Trading Course.
Learn how to trade Eur/Usd, Usd/Cad or any other major currency pair.

E-Mini Trading Course.
Learn how to trade S&P 500 and Nasdaq-100 E-mini contracts.


Main Forex trading resources

Forex trading

 

Welcome to Forex Trading Guide

Article

Are These Simple Trading Mistakes Costing You Money In The Forex Market
David Jenyns

The 2% rule is a powerful tool in Forex trading. By adopting this rule you're using a strategy that decreases the size of your losses during losing streaks, an important consideration. There is, however one small caveat that you need to be aware of when using the 2% rule to calculate how many Forex shares you are going to buy. As you know, the number of shares you can purchase is determined by your maximum loss and the size of your stop. This means that by increasing your risk, you can also increase the dollar value of the position you open. By simply shrinking your stop size, that is by setting a tighter stop loss, you can increase the dollar value of the position you open.

To avoid a situation where you could end up with excessively large positions that may put your Forex trading float at risk, you can choose to introduce an extra rule. This rule would limit the dollar value of a position to be no more than a set percentage of your entire Forex trading float.

For example, you might decide that you'll never open a position that has a dollar value of more than 25% of your entire Forex trading float. This rule would only be executed if, after calculating the formula that determines how many shares you buy, you find the dollar value of that position would greater than 25% of your float. If this happened, you would scale down the position to make sure it did not exceed that 25%.

The percentage that you decide upon will depend on the type of system you're trading, the size of your float, and your personal tolerance for risk. Generally, smaller Forex trading floats might use 25%, and larger Forex trading floats might use as little as 10% or even 5%. There are no definitive numbers, and the percentage that you choose will depend on your personal circumstances.

Once this tendency is corrected for you will have all your money management rules in place, ready to control your risk in the Forex market. Now you need to take the next step. Test your system to find out which of the variables best suit you, remembering always that position sizing is the most significant part of any system design. It is the lynchpin of money management. Once you've tested your system, and fine-tuned your rules, you will be well on your way to becoming a successful Forex trader.

About the Author

Discover BIG profits from the market by downloading your FREE copy of David's new Ultimate Stock Trading Systems course. http://www.ultimate-trading-systems.com/forex.htm

Forex trading News

Forex trading

Jan. 8 (Bloomberg) -- The Bank of England cut the benchmark interest rate to the lowest since the central bank was founded in 1694 as policy makers tried to prevent the credit squeeze from deepening Britain’s recession. The Monetary Policy ...

Read more

BOE Cuts Rate to Lowest Since Bank’s Creation in 1694 (Update2) - Bloomberg

Author : PFSoft Ltd. ZURICH, Switzerland , Jan. 8 /PRNewswire/ -- In close collaboration with PFSoft, Forexone has released the ProTrader private branded trading platform entitled FXInfinity TRADEMONSTER. "PFSoft turned out to be the ideal partner ...

Read more

Swiss FX Broker Forexone Releases New Forex Trading Platform from ... - Earthtimes

James Chen , CTA, CMT, is the Chief Technical Strategist for FX Solutions. He is also a registered Commodity Trading Advisor and a Chartered Market Technician. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars ...

Read more

James Chen - FXStreet.com

Jan 08 - Expected BoE Rate Cut Conflicts With Bullish Pound Technical Outlook Jan 08 - Identifying Trades with DailyFX 01.08.09 Jan 07 - Dollar Shaken By Deficit Forecast, BoE Rate Decision Top Event Risk Tomorrow (Forex Video) Jan 07 - Euro Upside ...

Read more

Euro Falters as CPI Suggests ECB Will Cut Rates (Forex Video) - DailyFx

Jan 05 - Forex Trading Signals Well-Positioned for Gains in the New Year Dec 29 - Forex Trading Signals Likely to Outperform in 2009 Dec 22 - Forex Trading Signals Likely to Benefit from Range Trading Conditions Dec 15 - Currency Trading Signals ...

Read more

Forex Trading Signals Well-Positioned for Gains in the New Year - DailyFx

An increasing number of people are now turning to forex trading as a means of generating revenue. However there is a lot to learn, so with that in mind, here are some of the basics you should know before you even think about trading forex with real ...

Read more

A Few Things You Need To Know About Forex Trading - Best Syndication

Rate drops to new lows overnight as cross-liquidation continues. Aggressive liquidation by EURO-Sterling cross spreaders providing the main selling but traders note lots of stops active under the 1.3400 area. Late longs are under pressure and can't ...

Read more

EURO USD Forex Trading Tips and Analysis for Day Traders - Top News India

Veteran Turtle Trader, Russell Sands, Will Auto-Trade For You. $6K Minimum. 100% Guaranteed. Automate Your FOREX Trading and Explode Your Profits TODAY! Double Your Money Each and Every Month. FAP Robot Eliminates the Guess Work in FOREX Trading ...

Read more

Forex News Trading - Colleyville Courier

TOKYO, Jan 5 (Reuters) - The dollar held firm near a three-week high against the yen on Monday as risk appetite grew after Tokyo shares followed Wall Street higher on hopes for a recovery in the U.S. economy later in the year. The Nikkei share ...

Read more

FOREX-Dollar holds firm near 3-week high vs yen - Forbes

The Dollar rose at a 3-week high against Euro at 1.3313 yesterday, helped by persistent signs of economic weakness in the euro-zone that may force ECB to slash interest rates further. It also continued to benefit from a planned US stimulus package ...

Read more

 

Home | Blog | Partners | Add Url | Site Directory | Search this Site  | Bookmark This Page