Handling the losing streak

Although the efforts of everyone in the formulation of trade, monitor and control your emotions, the period of inevitable loss can come. It is important to know the different strategies you can use to manage the time to lose. It is also useful to know the variables that can be tweaked to determine the style that suits you.
There are many ways dangerous and ultra safe way to handle the withdrawal period. Your choice which one you want to use.
You can change the variables
A. Trading Systems - If you do not believe in your trading system more, then of course you can switch to a system of completely new business.
Two. The risk of trade - can change the risk by trading more or less.
Three. Frequency of trade - can change how often you place an order on average higher or lower.


Strategies to attract the funding period
Now knowing the above variables, you can mix together to form a variety of strategies that can be used to manage the withdrawal period.
There are about 7 different ways to handle a series of losing trades. Seven different ways that you can draw period.


A. Major risks to business and commerce Increased Frequency trying to make money faster.
Suppose you're risking 2% per transaction and placing an average of 5 transactions per month. You fell 6% and try to recover. You increase the risk of trading at 3% per transaction, and at the same time you increase the frequency of exchanges on average 10 transactions per month.
This is definitely the most dangerous strategy that can feed itself and leads blown in the account.


Two. Increased risk of the trade to try to get money. You keep trading the same frequency.
Suppose you are risking 2% per transaction, and placed 5 trades per month. You fell 6% and try to recover. You increase the risk through trading up 3%, but keep the frequency of exchanges even close to 5 transactions per month.
This is the second most dangerous strategy, because while you hold the frequency of exchanges as well, you still increase the risk of trading.


Three. Keep the risk of the same trade. Increase the frequency of trading.
You do not take more risk in your trading. But you increase the frequency of exchanges in an effort to find other opportunities for a month. This is similar to the risks and dangers to number 2 above.


4. Keep risk to the same trade. Keep the frequency of exchanges as well. You just keep going and follow your system. No change.
Suppose you are risking 2% per transaction, and placed 5 trades per month. You fell 6% and to recover, you do not change anything. You still run the operating system you suspect you have an edge in the market. After all, if the system is good then your transaction will heal itself without changing any settings.
If your business system has real advantages, and you risk the right amount of trade which does not cause a significant loss if a series of consecutive losing trades happen, then you just have to keep doing what the risks and have the same amount and get the same job. Your membership will be recovered.
This is the strategy most likely to be implemented. It's right in the middle of a very dangerous strategy and ultra safe.


Five. Keep risk to the same trade, but a lower frequency of Commerce. This is starting to get more secure.
You do not risk more about your business. But you reduce the frequency of exchanges. So if you were to place five trades per month on average, you can cut two or three. Begin to be more selective in your trade and try to find the big winners. The best risk reward trade.


6. And finally, the safest is to reduce risk through trade and reduce the frequency of exchanges.
With this approach, you reduce risk by lowering trade and reduce your rate. If you have used a 2% risk per trade to five trades per month. You drop to 1% risk per trade and just looking for places 2-3 times per month.
Now you may ask, how are you supposed to recover from a draw when you reduce your risk per trade and reduce the frequency of exchange? This is where the big winners in. nailing Nailing of 5R, 10R, the 20R trade. You are more selective in your trading so hopefully your win rate increased slightly and / or your winners bigger.
This is by far the safest way to recover ultra withdrawal period.


There is another special method that involves a greater risk of the trade, but at the same time reduce your conversion rate drastically. So if you are risking 2% per trade and put the 5 transactions per month, you risk 5% per trade, and only put one or two transactions per month. How risky is this strategy will depend on what your system winrate. If you win the level very high, then it can work. If you win the level is low, then it could backfire and you have to choose one over the safety risks involved with reducing the trade and / or frequency of trading down.
The final method is to reduce the risk of trade, while increasing the frequency of exchanges.
Explain the relationship between risk and reward rate of victory in my previous post.

Futures and Spot Forex

Some people argue that currency futures are "better" through trade on the forex market.
Let me break these arguments.
They argue that futures contracts are traded on a centralized exchange place against a centralized market. Then talk about how different forex brokers may offer different prices, because there is no centralized exchange regulated. Then talk about how Forex brokers retail prices can mask and expansion in the news. Some can even speak retail forex brokers "stop hunting."
It is true that spot forex is decentralized. It is true that the spot price of exchange may be different in different corridors. It is true that Forex brokers can dell retail prices. It is true that Forex brokers can extend the difference in the news.
But the truth is a lack of liquidity and widening spreads can easily occur in a futures contract as well. The widening spreads are not limited to the conduct of exchange.The widening spreads and is generally associated with the fact that the market is illiquid and buyers and sellers are hard to find. It is true that some forex brokers widen the gap in new detail above and beyond normal and keep them high for a prolonged period of time after a few press releases. I've seen it happen.
If this is the case, then you do not trade with that broker, or you can trade with a broker, organize everything around your strategy to avoid such situations.
Generally, people who defend the currency futures contracts are usually super fast sellers or traders who simply want to mark some of the market. If you are a businessman, then the currency futures may be better for you because you might be able to get better margins and more consistent prices. There are many arbitrage and market sellers of currencies.
In fact, the more money is not made or scalping price arbitrage between different platforms. The money and more money is made from the global macro trading.
The dealer may be trying to do 5 or 10 ticks in Eurofx futures contract. I do not care about these movements. I am afraid of catching the next 50 pips or 100 pips movement of spot market EUR / USD. I know I'll pay much more than trying to scalp a few ticks off of the futures contract. There is almost no space for the money if you catch Pip 100 movements for movement 5.
Who cares if the price is out for a tenth of a pip here, or half a pip between different forex brokers. If you are scalping for 5 or 10 pips, then you could take care of these things. But if you're looking for Pip 50 or 100 or 500 operations, so do not worry about the price discrepancy. That arbitrators and quantitative funds try to get that tenth of a pip pip or medium between the platforms.
When I PIP 100 profit on EUR / USD, I do not care if I have one tenth the price of half Pip or worse in the input and output. Of course, I enjoyed getting the best price possible, but I will not be Dick ICT. I will focus my efforts and energy on this problem. Instead, I worry about how to catch the next move of 100 or 500 pip pip. I know I'll do a lot more money from the scalp is 5 or 10 ticks on the market.
As currency traders to stop the game, not to do. They do not have the capital available to do this.
Forex Futures also limited in how you can express your business ideas and macro views. There are many liquid currency futures contracts. With spot forex can express the idea of ​​the company and the macro point of the stronger currency and weaker than for what you believe If you believe that the AUD will be the strong yen and weak, then you can play in the AUD / JPY is not a problem. If you think the euro will be weaker and stronger CAD, then you can express that opinion in the EUR / CAD has no problem. In currency futures, not so easy.
When Soros broke the Bank of England, do not use futures. He used the cash currency market. He sold several billion pounds and became a value of DM. I'm sure the price between the various actors in the forex market is a small seed box. Prices may even have been off by 5 points or 10 points or more between different currency traders. He does not care. He was looking for someone to take the other side of your books commercial courts. He did not emphasize the difference in price of seed of certain riders. This was the last thing on your mind. He focused on global macro movement.
Just as we do not focus on one tenth of the difference pip pip or two or prices between the runners. Instead of focusing on catching the next big global macro movement.
Soros could never raised position of $ 10 billion short of forward currency contracts. It would be impossible. There was no money available for it. Instead, he focused on the inefficiency and liquidity in the spot foreign exchange market to express their idea of ​​trade and macro-economic perspective and benefited greatly.
Foreign exchange markets over the place today are ineffective because they were in 1992, much more money to boot.

Warren Buffett's Qoutes

Warren Buffett, yes, the name speaks for itself, one of greatest investor of all time and probably the best in my generation, who has built steady portfolio over a span of years until now. He's no doubt the very best out there, books written about him, movies starring hims, magazine have him on cover pages; the man are just so good at it, and today, I'll bring to you some of his quotes which I consider the best, which seems simple but simplicity is the name of the game.

• On earnings: "Never depend on single income. Make investment to create second source."

For most people these days, they have a job and they earn a living from that job, despite of using that currently-free money to invest elsewhere, they insist on keeping it for future usages but they won't know that, in a year, price of certain good would be double, which in verse mean that their saving amount has been cut by half in value despite of save sum of money.

• On spending: "If you buy thing you do not need, soon you have to sell thing you need."

Warren Buffett

• On savings: "Do not save what is left after spending, but spend what's left after saving."

Saving first, keep yourself a safe boat when you have some trouble, but remember to invest afterward to make second source income.

• On taking risk: "Never test the deep of water with both of your feet."

Meaning of this quote is that, never all-in in any situation but to test it first, if everything go according to plan, then make the full bet. For example, when you analyses a stock and you are certain that the stock is so bullish, you would need to test it first by for instant, buying 5 shares, if everything goes as what you expected, then buy another 10 shares, that would make it a safe bet.

• On investment: "Do not put all your eggs in one basket." 

This's another type of mistake that investor usually have, which's put all his/her eggs in one basket like betting all on a certain stock despite of diversify his porpolio.

• On expectations: "Honesty is very expensive gift. Do not expect it from cheap people"

Don't expect too far and good things won't come from cheap people.

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Big surge of buyers

Yo, how you doing guys :)

A bit update from the last month contest, well, it's been like a whole month since the last contest, which I finish second, well it's a bit sad but it's well expected since I have very slim chance to overcome the odds. But I believe that my anticipation is right about the bull move. I did notice a big surge of buyers, greatest amount of buyers I've seen in last three month and in subsequent days, an even bigger surge of buyers stepped in, which result in almost 400 pips bull move this month so far. Well, not bad if I decide to bet but since I'm on vacation, therefore no trading until very next month, I think.There's no sign of stopping, no stopping volume, no No-Demand, there's still very big demand and I believe there'll be more upmove until the charts say otherwise :)

Here's a little chart, what do you guys think?

How to Choose a Forex Broker

Babypips.com is where I start learning how to trade Foreign Exchange market and I believe that most aspiring traders should start there since they have an absolutely easy-to-understand, well-formatted forex school for all of trader wannabe. Not only it's easy to understand, the writer also use characters in babypips to make the school a funny place and a pleasant experience before trader step to the biggest challenge- actual trading.

Choosing Forex Broker is probably a kick-start for every wannabe, so choosing a good one is the first thing we have to do, and which's better place than babypips for a guide of "how to choose a good Forex broker".

Here's full article on how to choose a forex broker, full credit for babypips.com team, they've done an excellent work.
_______________________

With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay!  We're here to help!  We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs.  You might be thinking now, "Three steps? That's it?"  Yesssiirrrr!
In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers.  Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to. 
With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin...

 

Step 1: Do your research

Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:

1. Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.
2. Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.
3. How much or how little leverage will a broker give you?  We highly recommend you review "Leverage the Killer"before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie
4. Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.
5. Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither.  This information is important to traders who hold positions overnight.
6. Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

 

Step 2: Compare brokers 

 

Let's not beat around the bush, now you need go to Broker Comparison Guide.

 

Step 3: Open demo accounts and ask questions.  

 

Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.
Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.

Meet Various Reputable Forex Brokers

Compare Different Forex Brokers

Regulaltion of Different Countries Regarding to Forex Brokers

Glossary

Broker: Common name used to define, generally, firms that act as the middle-man in the financial markets. There are two types of brokers, market makers (dealing desk) or ECNs (non-dealing desk).


ECN: Electronic Currency Network. Directs the client straight through the interbank market, usually resulting in tighter spreads. Most ECN's have a fixed commission per roun/turn lot.


Leverage: The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.


Lot: Pack in which trading units are being sent to the market. There are 3 types of lots: mini and regular. A micro lot consists of 1,000 units units of the base currency. A mini lot consists of 10,000 units of the base currency. A regular lot consists of 100,000 units of the base currency.


Margin: The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.


Market Maker: Middle-man between the interbank market and the retail user. The interbank liquidity provider charges the market maker a small commission for providing access to tradeable volumes. The market maker also charges commission to its clients (in the form of spread, direct commission or both) to provide them access to tradeable prices in the currencies market.


Pip: The smallest price change that a given exchange rate can make.


Spread: The difference between the bid and the ask price of a security or asset.

STP: Straight Through Processing. It is the complete streamlining and automation of an entire transaction. In other words, as soon as a trade request is made, there's no manual intervention — gone is the to and fro of phone calls and faxes to authorize, confirm and settle trades. No manual intervention also, of course, leaves no room for human error.This allows traders to place orders that match off electronically with a broker's bank feeds without interacting with a “middle man” whose job is to try to make money trading between customers.

[Source: babypips.com]