One of the keys to being a successful forex trader is knowing when not to trade. For instance, most trading on Fridays lacks conviction. Market participants are tired and with the weekend dead in front of them, not motivated to take on any more risk. If anything, there may be an underlying forex trend toward selling. Mondays also can be problematic, since the rest of the world is still working on Sunday and hasn’t voted, with their pocketbooks, on any news that popped up during the weekend. It’s also a fact that the 5 biggest Forex market makers are all headquartered in either Europe or the US – not in Asia. Thus, there may be a decided lack of trading momentum on Mondays, and perhaps, even Tuesday mornings. Under such circumstances, limiting your trading to between Tuesday mornings and Thursday afternoons doesn’t seem that ridiculous.
In Forex, the name of the game is increasing your average profitability per week (or month). Then, it’s reducing your average drawdown per week (or month).
Why You Need To Look After Forex Capital
The size of your initial cash investment doesn’t count for much in Forex. What’s important is how you manage it. If you know how to consistently make a profit again and again, without suffering huge drawdowns (losses), then it really doesn’t matter if you start out with $100 or $10,000 – you are going to be a very successful trader. Assuming that you’ve figured out a winning strategy that can make a profit out of at least 6 out of 10 trades, then the name of the game is guarding your growing cash position well (i. e., trade defensively) plus trying to snuff out any losing trades. The reason for this is that every loss is drag on your profitability ratio.
You Need Capital To Make A Profit In Forex
When trading Forex, on the internet, there are many brokers offering “mini” and “micro” accounts. (See “100forexbrokers.com” for a good initial listing.) Most of these forex accounts do not require a lot of upfront cash but, curiously, offer the same leverage ratios that come with “standard accounts”. So, it doesn’t really matter how much money you have – or, don’t have – when starting up. What really counts is how profitable you make each trade thereafter. This depends upon how well thought out and successful your forex trading strategy is. If you’re not make a profit 6 out of 10 times, on your “demo account”, do not open up a “live account” – mini-, micro- or standard-sized – until you know that you are not going to lose your capital.
Compound Capital For Better Forex Trading Results
One reason why “positive interest rate carry” positions are so popular in forex trend trade is because you can use your initial profits to fund further positions while the trend is unfolding. What happened with the USD/JPY after Japanese Prime Minister Abe got elected in late 2012 is a perfect example. “Everyone” (i. e., from George Soros and Jeff Gundlach on down) jumped into long positions (around USD/JPY 80) with the idea of not getting out until USD/JPY 100 was hit (which happened in early May). Such a run would give ample opportunity to “lay on” new positions covered by an ever-increasing cash margin account. This also probably explains why the USD/JPY suffered 4 down weeks soon after hitting USD/JPY 100.