Picture above is the survey of more than 100 Trader FXCM, by collecting the results of actual trading of multiple transactions Trader, most have in common is a willingness to accept more losses than profits, meaning that each when placing orders, they accept Stoploss much higher than the profit-take Profit, 10 holes willing to record at 2-3 at.
Capital management as follows:
For example, current account transactions Balance is: $ 5,000
The maximum level of damage is acceptable for each order of 2%, by $ 100.
Before placing orders, should consider the following criteria. For example, you trade according to the principle of two intersecting MA (MA 5 MA 10 such cuts), after determining the point on should be prepared before the stop loss. If the "contract" is likely to be more than $ 100 in the hole so skip this opportunity.
Picture above is the actual situation transactions trend trending method is under the block transaction price and model, this is the most basic form of pattern in the price legal action. In the previous topic KinhdoanhForex.net guided interstitial trendline from Trendline MT4 software directly on to observing facilities, shape as well do the same thing with a channel to Join Channel. This is a trend, it is easy to see, no need to imagine
Entry is at Trendline Support, here is 0.9580
Profit target orders lad keeps rising price channel on Channel family, in the 0.9810 zone
Stop loss at 0.9465 Stop Loss.
Thus the profit target is 230 pips
This command damage if eaten Stoploss: 115 pips
We are Winning percentage: Loss ratio: 230/115 = 2, is sort of acceptable loss to be 2 1 copper copper (Drop the shrimp catch crawfish)
Assuming this transaction account which is: $ 1,000 and the maximum acceptable loss 2% => $ 20.
If placed in trading volume, the volume is 0.05 lot will be 115 pip loss: $ 57.5
Easy to see that the damage has surpassed the $ 20 allowed should be reduced trading volume to 0.01 lots => 115 pips * $ 0.1 = $ 11.5 ==> This command only deals 0.1 lots.
Many Trader when asked about the exchanges soon learn to the maximum possible leverage transaction or as high as possible. So very risky, such as risk management formula above, if this unfortunate loss trade orders only lost $ 11.5 only. With $ 1000 account you can still place orders 0.05 lot there but the damage to $ 57.5 "touch ignoring"
There is even a mandarin - Have guts: If you accept a high level of risk should understand concepts like Margin Call (The capital call), each level exchanges provide financial leverage (leverage) different and the number% when the total reaches all orders will be automatically Close most negative command or how much they were touched Close all commands (commands case is open). Ask your consultant floor transactions to support exactly this number. Specific examples at forex.com uk floor. If 90% Margin Level touching the most negative command automatically shut the system also hitting 50%, all orders are in open state will be closed immediately.
Each month there are 10 transactions such opportunities, for example with a $ 5,000 account and Max Loss = 2% ($ 100)
Word Ratio: The average loss of 2: 1
The number of orders being hit Stoploss: 3 Command - For every loss orders => $ 300 damages
The number of wins the command: 7 command - Assuming each order is urgent for loss ($ 200) => Revenue was $ 1,400
Profit = Revenue - Expenses = $ 1,400 - $ 300 = $ 1,100
ROI (Return On Investment) = $ 1,100 / $ 5,000 = 22%.
It is attractive margins, maintain a stable ratio. After the first month, the account from 5K rose to $ 6,100, while the rate of 2% max loss also increased, resulting in account the larger the number Stoploss and take profit higher but the core still display material according to the strict capital management.
