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Risk Management

15 Min Chart (ATR + BB indicator) Part 4 of 4Please practice using the Forex position size and risk calculator on all trades you make. Noted on EURUSD 15 minute chart are: Four possible entries into a sell trade on Friday - Low volatility EurUsd has last 5 weeks or 56 ATR [er day. (Hard to scalp or day trades with low volatility pairs) - I used minimum of 10 stops on low volatility pairs, but consult with ATR and either use 10 pip stop loss and/or X 1.5 to get stop loss to use This is a scalping or day trading trading strategy, quick trades. Please practice using position size and risk calculator to get: 2% risk, trading lot size, stop loss and target(s) on 15 minute time frames, I look for 1:2 risk reward over higher, how much profit you made and how much one pip move is worth? You need to know this so you can manage risk and set appropriate stops and targets for low volatility and high volatility pairs in Forex. IF you have a need to be part of the masses and trade EURUSD, then put your efforts into when both London session opens to London session ends. Why, this covers Tokyo/London overlap and highest most liquid and volume 4 hour time which is London/New York sessions overlapping period.
Education
by Anbat
2
1 Hour Chart (ATR + BB indicator) Part 3 of 4On 1 hour and 15 minute time frames, I would be looking for minimum of 1:2 RR setups. Both noted examples on EURUSD chart of 1 hour charts you both: 1) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 18 pips vs 36 pip reward setup. 2) Setup at end of Tokyo session (use last 1 hour red candle open) for entry into buy trade of next candle, using ATR x 1.5 for stops and targets, risk 12 pips vs 24 pip reward setup. These trades are either scalp and/or day trades, using both BB indicator and ATR indicator for timing purposes and stops and targets. If price is above BB 20 ema (yellow line), then look for buying trades and if price action is below BB 20 ema (yellow line), then look for selling trades. NOTE: From Chart set up of both trades: Please find a position size and risk calculator: Your account size, 2% risk- using noted stop losses and targets- How much profit did you make? What is your trading lot size? How much USD money is one pip move worth? Do this on all trades you do for risk management. PRACTICE on Sell trade noted on right side of chart, using 10 ATR, find stop loss, targets, RR setup, trading lot size, 2% of your account, etc...
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by Anbat
4 Hour Chart (ATR + BB indicator) Part 2 of 4On daily and 4 hour charts, I would only be looking for 1:1 Risk Reward setups using ATR and Bollinger Bands. This is if you are day trading or swinging within the same week time period. 1st example trade (on chart): Uptrend/Bullish trend this past week 1) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 33 pip stop loss at open of that red candle related to a 22 ATR x 1.5 pips = 33 pip stop loss, entry would be at open of that same red candle and exit/target would be 33 pips above enter. 1:1 RR set ups are great, especially because they win get you high win rate %. This trade would have been done in same day for a 33 pip profit. 2nd example trade (on chart): Uptrend/Bullish trend this past week 2) Look for price action to swing low (make a 4 hour red candle) that hits BB center 20 ema line (yellow), set up a 36 pip stop loss at open of that red candle related to a 24 ATR x 1.5 pips = 36 pip stop loss, entry would be at open of that same red candle and exit/targets would be either at 1st target of 36 pips next day or during two days 2nd target at 72 pips (noted on chart). 1:1 RR to 1: RR set ups are great for 4 hour and daily time frames, because they will get you a high win rate %. 4 Hour Time frames are mostly for swinging at least for one to three days, if you close out all of your trades within the same trading week. Your should practice calculating lot sizes and risk on these two noted trades, using your account balance, 2% risk and atr/pips noted on trades.
Education
by Anbat
2
Use ATR (To Set Stop Losses & Targets)ATR (average true range) is I think the best indicator(period)- related to setting your stop losses and targets. This ATR indicator should be part of your plan, trading edge and strategy to utilize on every trade you do. This is 1st article of four articles related to this subject: Note: Will be doing three more articles on using ATR on lower time frames: 4 hour, 1 hour and 15 minute in the future. Using ATR On Daily Chart (see example here) On chart notice the following: 1) Doji (undecided daily candle at support, low volatility candle) - happened on a Friday 2)Notice 9 day bearish trend prior to daily doji candle 3) This daily doji candle had an ATR of 60 rounded up (fyi). On daily I keep ATR and Stop Loss & Target the same for any daily trade setups 4) Stop Loss/Risk: 60 pips 5) 2% of $5000 account is $100 USD risk on trade 6) $1.66 PER PIP MOVE on EURUSD or trading lot size is: 0.16667 6) This trade would have made you from $100 to $200 USD within this last week (conservatively), by Thursday and/or Friday. (4 to 5 days). Can you wait? Do you have patience to trade daily? Larger time frames are easier to trade then lower time frames, but it is all relative to personality.
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by Anbat
How To Use Position Size & Risk Calculator (On All Trades)Use Position Size and Risk Calculator to easily calculate recommended lot size, using live market quotes, account equity, risk percentage and stop loss. What are Lots: Standard 1.0 Lots: 100,000 Units Mini 0.10 Lots: 10,000 Units Micro 0.01 Lots: 1,000 Units Nano 0.001 Lots: 100 Units In Forex a Lot defines the trade size, or number of currency units to be bought or sold in a trade. One Standard Lot is 100,000 units of base currency. Most brokers allow trading with fractional lot sizes down to .01 or even less. Fractional lot sizes are sometimes referred to as mini lots, micro lots and nano lots. How To Use Position Size & Risk Calculator: (Select and/or impute your particular details of any pending trade)* THEY ARE FREE ON LINE!!! Currency pair: Traders can select from Major Forex crosses, Minor pairs. Stop loss (pips): Traders should input the maximum number of pips they are willing to risk, or lose, in a trade, to protect the account equity in case the market goes against their position. Account balance: Pretty straight forward, traders just need to input their account equity. Risk: The crucial field of this Position Size and Risk Calculator! In this field traders can select from a risk percentage or any amount of their account base currency ($2, $20, $40, etc). As a guideline, professional traders do not risk more than 2% of their account equity per trade. This technique will allow for traders to last longer with their trading careers, and eventually, also to recoup from previously losing trades. Now Hit the "CALCULATE" button The results: The Position Size and Risk Calculator uses a market price live feed with the current inter bank rate (in a 5-digit format) and it will display the selected currency pair price Calculator displays the amount of units that that a lot represent; how many trade units and finally the portion of the account equity at risk, or the value of the position, in this case $100 USD.
Education
by Anbat
5
What Is A Bankers Candle? How To TradeBanker candles happen on all time frames, with Forex trading- banker candles are stronger and more reliable on higher time frames. Happen a lot at support and resistance, demand or supply and or bearish or bullish order block areas, Fib areas (50%-61.8%), zone areas, etc... What Are Banker Candles: They are the opposite move, before large move into other direction. Bullish daily trend, last RED candles before move upwards. - see Doji candlestick (1st candle- happens during London session) - see Engulfing two candlestick setup (2nd candle setup- during London/NY overlapping session) Only people that have capital and can move Forex markets are: hedge funds and big banks This is mostly called the manipulation phase or fakey area (going into wrong direction of trend of day) if you are scalping or day trading. Look for big swing moves on 1 hour, 4 hour or daily going wrong direction of major trend on chart, last candle going against trend is bankers candle. How To Trade: Make this part of your trading edge, strategy and/or plan 1) Set new trade on open of bankers candle excepting next candle to reverse back into major trend direction. 2) Set stop and targets (via ATR x 1.5)<- you can you tube video this concept for information. This is so that you do things same way over and over.
Education
by Anbat
2
Is Trading Forex Gambling? DependsIs Forex Trading Gambling? Depends Notice a common theme? “Risk” and “losing”. If there are two things a Forex trader knows, it’s that there’s always risk and you will lose money at some point. It’s simply the cost of doing business as a Forex trader. What is the truth? The truth is that even the large banks and hedge funds gamble every time they sit down at their trading computer. But (and it’s a BIG but) there’s an inherent difference between how they gamble and how 99.9% of retail Forex traders gamble. It’s a little thing called “probabilities”. Learn to Think in Probabilities It all comes down to putting on trades where the probable win is higher than the probable loss. In other words, stacking the odds in your favor. Use price action and confluence. The more “Confluence Factors” you have in your favor on any one trade, the higher the probability is that the trade will make you money. Different types of probabilities: Price action pin bar on the daily chart. Price is rejecting a key level.The trend is up.The moving averages are providing dynamic support. No immediate resistance to the upside (there are several more probables, you might use for your edge, plan or in your strategy). Let’s go back to the casino example for a second. We can learn something from casinos. The goal for any Forex trader should be to trade their account like a casino owner runs his/her business. Casino owners know they’re going to lose money on some customers, it’s the cost of doing business. But they also know that by the end of the year, they’ll turn a profit because the odds are stacked in their favor. So start trading account like casino owner runs his/her business by using price action and confluence, and begin stacking the odds in your favor.
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by Anbat
Top 10 Things 2 Look 4 On ChartFocus on larger price movement. Lesser but reliable signals. Bigger stop losses & profit targets. Market noise greatly reduced. Smaller position sizes. Use 1 hour, 4 hour and daily for yes, scalping, day trading instead of lower time frames under 1 hour which have more signals but less reliability. Please refer to (attached AudUsd 1 hour chart example chart) for Top 10 Things 2 Look 4 On Chart: 1) Price action by main daily pivot point (red line) 2) Risk Reward set up is at least 1:1.5 or larger on trade (ex: 20 pip stop vs 30 pip reward, per this trade) 3) Tokyo session is in a 20 pip sideways or ranging price action 4) Large big banks and or institutions for two hours (blue candles) quickly bought market (manipulation phase), thus clearing out all the retailer sell traders. 5) Large big banks and or institutions suddenly with double or triple money sold market, during London & NY sessions (too end of London/9 am PST/USA) 6A) Two psychological numbers noted on chart, 0.74000 and 0.73500 (50 pip range)-why? triple 000'sand/or 500's act as magnets for both stops/targets. 7) Noted 50 pip range area for price action for the day 8) Breakout one hour candle (Red candle), with momentum which should have been used to enter a new sell trade, with correct risk management. 9) Daily Trend (of 30 pips) 10) Target or take profit exit for trade at 0.73500 (which happen at London close, Friday and last day of month to trade)- after low liquidity/volume
Education
by Anbat
3
How To Identify Imbalance (Forex)If you are scalping or day trading- this bearish or bullish imbalance mostly happens at end of Tokyo session and/or start of London session. This is when big banks and/or institutions quickly do a FAKE move (like chart bearish/Red candles) then with double, triple money reverse price action (like chart bullish/Bull candles)- in direction of trend of day. What happens is this combined move is so quick and has high liquidity and volume that price action leaves an area with only one sided trading (not area on chart where only sellers were and zero wicks filled area)- the arrhythmic computer does not like that this area is only one sided, so will push price action back into this area or close to get price action back in balance. Note: on chart that price action did a bearish push back almost into the buyer only area during last 1 candle of the London session (doji on chart). Things to look for to find imbalance on a chart: 1) One sided buying or selling only 2) Large candles on 1 hour or 4 hour charts 2) No candlesticks right or left of imbalance candle (its all alone) 4) Price action leaves either a buy only area and/or sell only area , where zero wicks or price action into area before trending away. 5) Forex computer does not like this imbalance and will push price action towards this one sided tradings to get buying/selling back in balance. This imbalance happens after manipulation phase of Forex Master Chart pattern- which is mostly at end of Tokyo and/or start of London session. Look for areas on chart with only buyers only or seller only areas (no candlesticks right and left of this imbalance)- price action will want to come back to area.
Education
by Anbat
4
The 2% Rule? (Never Break It)What Is the 2% Rule? The 2% rule is an investing strategy where an investor risks no more than 2% of their available capital on any single trade. To implement the 2% rule, the investor first must calculate what 2% of their available trading account is: Example: $5,000.00 account equals $100.00 risk per trade. Key Takeaways: The 2% rule is an investing strategy where an investor risks no more than 2% of their available capital on any single trade. To apply the 2% rule, an investor must first determine their available capital. Stop-loss orders can be implemented to maintain the 2% rule risk threshold as market conditions change. How the 2% Rule Works The 2% rule is a restriction that investors impose on their trading activities in order to stay within specified risk management parameters. For example, an investor who uses the 2% rule and has a $100,000 trading account, risks no more than $2,000–or 2% of the value of the account–on a particular investment. By knowing what percentage of investment capital may be risked, the investor can work backward to determine the total number of lot size to purchase. The trader can also use stop-loss orders to limit downside risk. In the event that market conditions change, an investor may implement a stop order to limit their downside exposure to a loss that only represents 2% of their total trading capital. Even if a trader experiences ten consecutive losses, using this investment strategy, they will only draw their account down by 20%. The 2% rule can be used in combination with other risk management strategies to help preserve a trader’s capital. For instance, an investor may stop trading for the month if the maximum permissible amount of capital they are willing to risk has been met.
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by Anbat
267
Closer look into Rising/Falling Wedge, Reversal Price Action Closer look into Rising/Falling Wedge, Reversal Price Action structures/patterns Hi traders: Today I will go more in detail on rising/falling wedge correction in price action structures/patterns. You might have already heard about these types of correctional structures, and many traders who utilize them. Certainly there are many ways of traders identifying them and taking advantage of these kinds of price action, so it's ideal for you to understand them in your analysis. We first need to understand that a rising/falling wedge is a REVERSAL price action. Meaning when the correction completes, there's a higher probability of the price to reverse. You might have already seen multiple price action videos from me that go over all sorts of continuation and reversal price action (I will share links below), and I always talk about when combining multiples of different price action structures/patterns will give you a better edge at entering positions that work out in your favor. Same idea here, so let's take a look at how rising/falling wedges are, how to identify them, and how to effectively use them in your analysis. Rising/falling wedge, just as the name suggests, is an ascending/descending type of correction where the price is getting squeezed into a “wedge”. As the price gets narrower and narrower, there's a higher probability of the price to “reverse” from the wedge. Now about entries, certainly many traders have their own method of entering, so I will share my point of view and the way how I like to enter them. Any questions, comments or feedback welcome to let me know :) Thank you Risk Management: 3 different entries on how to enter the impulsive phrase of price action Multi-time frame analysis Identify a correction for the next impulse move in price action analysis Continuation and Reversal Correction Continuation Bull/Bear Flag Parallel Channel (Horizontal, Ascending, Descending) Reversal Ascending/Descending Channel Reversal Double Top/Bottom Reversal Head & Shoulder Pattern Reversal “M” and “W” style pattern Reversal Impulse Price Action Continuation/Reversal Expanding Structure/Pattern
TVC:DXYEducation
by jojofang0901
47
TYPES OF TRADING ORDERS AND HOW TO USE THEMPending orders Somewhere you can find the term as "Deferred orders". These are orders that will be filled in the future, once a certain condition is met. Most often this condition is reaching a certain market price. The most popular pending orders are Stop and Limit! Both types of orders become market orders when the initially set price is reached. The difference between them is that Stop Orders can be activated at a worse price than the set price, depending on market conditions. Limit orders cannot be activated at a price lower than the set price, the price must be either equal to the set price or even more advantageous. Depending on the purposes of the trade, different deferred orders are used. A breakout of a level is traded with a Stop order A pullback from a level is traded with Limit order. The types of Pending Orders are: Buy Limit; Sell Limit; Buy Stop; Sell Stop; OTO; OCO; and other. Market order This is an order where you enter a trade, regardless of buy or sell, which is executed at the current best price. For example, if you want to buy GBP/USD, you click directly on the corresponding button and the trading platform automatically places the deal on the market. When you click on the "Sell" or "Buy" button, you actually place a market order. Keep in mind that depending on market conditions, there may be some difference between the price you see and the price at which the order will be executed. Stop Forex orders - Buy Stop and Sell Stop The Stop orders to enter a deal are different from the Stop Loss order to limit the loss! Buy Stop order is used when you want to buy at a level higher than the current market price. It is placed higher than the level at which the price is currently. Sell Stop order is used when you want to sell at a level lower than the current market price. It is set lower than the current price level. For example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will continue to move in an uptrend. In this situation you have two options: To sit in front of the screen waiting for price to reach 1,1960 so you can buy, or; To place a Buy Stop order at the 1,1960 level. However, if you think that the price will fall in the coming periods, instead of staying at the computer and wait for a convenient time to sell, you can place a Sell Stop order at a level lower than the current market price - on the chart 1.1760. Limit Forex orders / Buy limit and Sell Limit Buy Limit order is used when you want to buy at a level lower than the current market price. It is set lower than the current price level. Sell Limit order is used when you want to sell at a level higher than the current market price. It is placed higher than the level at which the price is currently. For example, EUR/USD is currently trading at a price of 1.1860, you think that if it reaches a price of 1.1960 it will bounce off the level and go into a downtrend. In this situation you have two options: To sit in front of the screen waiting for price to reach 1,1960 so you can sell, or; To place a Sell Limit order at the 1,1960 level. However, if you think that the price will fall in the following periods and then rise, instead of you sitting at the computer and wait for a convenient time to buy, you can place an order to buy a limit below the current market price - on chart 1,1760. Above is a summary chart of the orders and where they are placed. Let’s summarise: Buy Limit - pending buy order placed at a price lower than the current one; Buy Stop - pending buy order placed at a price higher than the current one; Sell Limit - pending sell order placed at a price higher than the current one; Sell Stop - pending sale order placed at a price higher than the current one; OCO orders / One Cancels The Other The OCO order is a combination of two orders to enter into a trade. One order is placed above the current market price and the other below the current market price. When one of the orders is reached, it is executed and the other one is automatically deleted from the trading platform. For example, EUR/USD is currently trading at 1.1850. You expect great volatility in the market and you do not want to miss the movement. In this case you place an OCO Forex order at the level of 1.1880 (above the market price) in anticipation of an upside move and at the level of 1.1820 (below the market price) in case the price goes down. When the market reaches 1.1880, you will buy EUR/USD at this level, and the order placed at 1.1820 will be deleted from the trading platform. OTO orders / One Triggers The Other OTO allows the trader to place two orders simultaneously, the second one being activated after the first one. This type of order allows many different combinations. For example, a buy order can be placed at a pre-set price, above the current one (Buy Stop) and a second order can be placed together with it to limit the loss from the buy order, in case the price goes in the opposite direction. In this case, the loss limit order will only be activated if the buy order is activated. The orders described so far are for entering into a trade, but you must also exit the trades. This is done by using “Stop Loss” and “Take Profit”. Trailing stop Trailing stop is an order to limit the loss, which moves along with the market price. It can be said that this is a moving Stop Loss. And here is how to do it! Suppose you want to buy GBP/USD at a price of 1.2820. You place a trailing stop at a distance of 20 pips at a price of 1.2800. When the price goes in your direction and reaches the level of 1.2840, then the trailing stop will move by 20 pips or at the level of the entrance to the transaction. Then if the price reaches the level of 1.2860, then the trailing stop will move to the level of 1.2840. Keep in mind that if the price returns from 1.2860 to 1.2850, the trailing stop will NOT go down to 1.2830, but it will remain at 1.2840. If it was to move down back with the price, it makes no sense, because it will never be reached and will not be able to limit the loss of the deal. And then you will find out first hand what Margin Call and Stop Out is! Another important feature to keep in mind is that the trailing stop is only active if the trading platform is active. If the platform is closed, then you do not have a Stop Loss order at all! Conclusion These are the most frequently used orders on the Forex market and they are totally enough, there is no need to complicate trading. Before you start trading live, get familiar with the conditions of the broker regarding the orders. Make sure that you understand them and that you can use them correctly. The best teacher remains the practice, therefore, open a demo account and test the capabilities of the platform. 👍 Please support this tutorial with like and comment so we can help more people together. Thank you in advance! 🙏
Education
by ForexTrendline
32
Profits & Stop Loss - Using ATR indicatorOn all pairs you trade you should know the daily ATR volatility and if scalping or day trading that time frames ATR too. The higher the daily ATR is the more volatile the pair, but easier I think to scalp or day trade with. Rules to use ATR indicator for stop loss are: 1) Find the candlestick or setup that you would like to trade from, (example: 1 hour candle bullish pin bar on GBPCHF chart)- ATR is 12 pips 2) then times it by 1.5, so total would be 18 pips for stop loss 3) this will cover both most volatility of price action and spread ( low or very little getting stopped out on trades) rules to use ATR indicator for profits are: 1) 1:1 risk reward would be 18 pips 2) 1:1.5 risk reward would be 27 pips 3) 1:2 risk reward world be 36 pips Note: All three profit targets are noted (by black ARROWS) on 1 hour example chart of GBPCHF I do not keep ATR on my charts, but just glance at it to set up both stop loss and profit targets and then delete it, this is so my other indicators can assist me after entering any new trades. This is one of the best indicators to use for stop losses and take profit targets, just manage your risk management and lot sizes. Note: I always let price action come to me and chase price action, so after one hour red candlestick (used for ATR), I let price action reverse into my buy order above price action at open of red pin bar candlestick used to get ATR. Please put into your trading using ATR for both stop loss and profit targets.
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by Anbat
Use Proper Position Sizing In Forex (Mandatory)Proper position sizing is THE single most important skill that traders could have. Without it, you’ll end up taking trades that are too big or too small, either blowing out your account or under utilizing a high performing trading method. Typically, risking a max of 1% to 2% of account per trade is recommended for new traders to avoid ruin, but that will change as your skills grow. Using a position size calculator, you can match your ideal risk per trade together with your entry and exit levels to give you the exact number of units that you should work with.Of course, you could always round them off (as long as you stay within your max risk) to make your trade journal entries easier or if your broker isn’t flexible with their position size offerings. Position Sizing: The Way to Profit in Forex It has been said that the single most important factor in building equity in your trading account is the size of the position you take in your trades. In fact, position sizing will account for the quickest and most magnified returns that a trade can generate. Here we take a controversial look at risk and position sizing in the Forex market and give you some tips on how to use it to your advantage. How Much Risk Is Enough? So just how should a trader go about playing for meaningful stakes? First of all, all traders must assess their own appetites for risk. Traders should only play the markets with "risk money," meaning that if they did lose it all, they would not be destitute. Second, each trader must define—in money terms—just how much they are prepared to lose on any single trade. Usually, this percentage is about 2%-3%. Depending on your resources, and your appetite for risk, you could increase that percentage to 5% or even 10%, but I would not recommend more than that. Look on example chart: Risk was around $110 vs Reward of $185 to $275 or 1 to 1.5 to 2.5 setup. This was based on 1 standard size lot.
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by Anbat
3 Steps Of A Trade (Step #3 Exit Order)Forex Exit Strategies: Tricks on Setting Limit Orders: Forex exit strategies and exiting a trading position at the right time and price is arguably more important than your entry order. Because only when you exit, you lock in and confirm your profit. Choose the best currency pairs and the best times to trade.Today, let’s talk about getting out, WITH profit. By paying attention to a small trick when setting limit exit orders in your long-term trades. There are many ways to calculate your Forex exit strategies. They highly depend on your trading time frame, your account’s margin and on the market sentiment in general.Identifying Limit orders or Profit Taking Levels is one of them. These are the areas you calculate to get out of your position and manage your Forex exit strategies when the market prices reach your target. Limit Orders Traders usually use market orders to exit trades with a big profit. If you use a limit order while you are going long, then your limit order will be higher than the market price.On the other hand, if you go short with a limit order, then your limit order will be below the market price. Imagine a limit order like a finish line. Your trades will be directly closed every time the market price crosses your limit orders. Put bull exit orders below obvious psychological round numbers (ex: 1.50000, etc...) and above bearish psychological numbers, support and resistance areas. Most of time big banks on purpose do not go to these areas knowingly that a lot of traders are TRAPPED in these areas.
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by Anbat
Trade 3 Steps (Step #2 Enter Order)Entry orders are a valuable tool in Forex trading. Traders can have a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out the window. This is where setting up Forex entry orders comes into play. Entry orders allow traders to set price that they would like to buy or sell a currency ahead of time. Only be executed if that specific price is hit. There are several benefits to trading Forex using entry orders. WHAT IS AN ENTRY ORDER IN FOREX TRADING? A Forex entry order is an order that is placed at a specified price level for a currency pair. Once this price is reached, the order is then executed/filled. If the price never reaches the desired price level, the order will not execute. The type of order can vary as well, which should be taken into consideration prior to placing the Forex order. TOP 5 BENEFITS OF USING FOREX ENTRY ORDERS 1. Price Control- The first benefit of entry orders is the control they provide over price level. Traders can indicate their desired price level entry point at which the trade will execute. Having this ability to designate a level allows for ease of trading without having to constantly monitor the market. 2. Entry Orders Save Time-Forex entry orders are very useful for saving time. By setting one, traders do not need to be at a computer when a trend line is hit or when price breaks out of its price channel. Traders can very easily add an entry order to get in the trade if price behaves in the way he/she thinks it will. The order does the waiting and allows traders to focus on other things. 3. Better Money Management- Forex entry orders help to save money. To understand this better, consider how much time traders dedicate to trading each day. 4. Accountability-Forex entry orders (with stops and limits attached) also help keep traders accountable. This is because they eliminate the possibility of emotions getting in the way of reliable, profitable trades, and make sure traders are following the rules to the latter. 5. Support Trading on a Time Frame-Trading on a custom time frame can allow for more specified trades that could be in line with upcoming market news, political events or company results depending on what market is being traded. Traders can stipulate the expiry period for the entry order:
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by Anbat
Trade 3 Steps (Step #1 Stop-Loss Order)“Always use stop-loss orders.” -W.D. Gann, legendary investor/trader What is Stop Loss in Forex? Stop loss in Forex is a great way to minimize the amount of money you lose through trading. It is an exit plan in the event of a losing trade. Essentially, stop loss is a limit you set to minimize your risk that automatically exits you out of a trade if your currency pair dips below a level that is losing you money. Stop loss is a valuable mechanism that Forex traders must use if they want to make a living from Forex Trading. It is especially essential for beginner and inexperienced Forex traders who aren’t able to always make the best trade choices. Stop loss, while important for beginners, is also used by experienced traders. There’s no downside to protecting your trades- unexpected fluctuations of currency prices happens all the time, and it’s wise to safeguard your investing when you can. Stop loss also allows you to make trades and walk away from the computer for a while, instead of having to watch the currencies change. It also worth mentioning that stop loss can work against you. * I let the trade breath with stop loss but still look for 1:5 or higher risk reward setups. Let’s say your stop-loss is hit and you are automatically backed out of a trade, and after you’re exited from the trade the currency pair swings back other way exponentially? Not only did you just lose money on the trade, you missed out on a potentially big profit. This is why some Forex traders might have a disdain for stop loss since they view it as missing out on opportunities for major swings in a currency pair. While it depends on who you talk to, the majority of Forex traders will advise you to use stop loss, especially for beginners. It’s necessary to know about stop loss orders and how to calculate the proper limit to set it at. Figure out your stop-loss strategy and keep to it- it will save you in the long run. Nailing down a proper stop loss strategy before you start trading is one of the best ways you can ensure yourself from the always-changing Forex market.Choosing best stop loss strategy depends on your experience, skill level, bankroll, etc. There are so many different factors that will impact what the best stop loss strategy will be for you. As with everything in Forex, it’s best to educate yourself on Forex trading strategies to eventually get to the point where you’re making a consistent income through online trading.
Education
by Anbat
REASONS not to trade 1st hour of sessionIf you are either a scalper trader and/or a day trading, the 1st hour of new session is never a place to trade: Here are some reasons: 1) Low Liquidity 2) Low Volume 3) Very High spread widening ( can be 15 to 20 pips) from broker 4) Very Large hourly candlesticks (example: 88 pip large clearing doji candlestick) happens for broker to take both buyer and seller positions out. Note: 1st hour of session is during Sydney session, then afterwards Tokyo session starts. Increasing liquidity and volume starts end of Tokyo. Part of your plan should be: Pairs to trade When to trade What setups to trade Trading edge & Strategy Do not be greedy especially during the financial craziness going on in most countries around the world, just get a piece of PIP PIE in a trade if you are either a scalper or day trading. Use risk management and commonsense- this is no place to gamble with your money- use probabilities of success of setups.
Education
by Anbat
3
Smart Money- Pair,Price,Session & TimeIf you are a scalper trader or day trader you need to know always: What pair are you trading (ADR, day of week, etc...) What price is right now What session(s) is open/closed now- start of session, middle or end What is time- lunch in Tokyo, London or NY. Smart Money- Where is the money- right now? From example one hour chart of Friday (what do you see?) You need to know support or resistance areas (bearish or bullish order blocks) When price action could breakout or reverse from a manipulation phase- anticipation and catching these moves are early will give your set ups less risk and lower stop loss, especially if you scalp or day trade.
Education
by Anbat
1