LMFX PAMM


Using risk management policy to protect your investment

Using risk management policy to protect your investment

  • Posted: Feb 22, 2019
  • By:
  • Comments: 0

The Forex trading business is all about saving investment. This statement is very common for most of the readers. We have written it in most of our articles. That does not mean it is not valuable. In fact, there is a lot of value for the trading business with currency. As the result of too much volatility, the traders will lose a lot of trades. Therefore, losing trades will make you lose a lot of capital. For this reason, only, the trader must concentrate on proper risk management. To increase the influence, you can think about the relaxation in this profession. The traders will have to think a lot about their trades. That will not be good with improper risk tensions. So, you will have to think about the right management of your trading money. Today, we are going to talk about it more in this article. If you do not have any proper setups for the control over your risks per trades, this will help a lot. 

You must not invest too much into the trades 

When you learn about Forex, the system will be clear to your mind. One time of the learning process, the traders will also get some good idea about the fluctuation of the price charts. And the fact of it being too much unstable will also be clear to traders. So, there are more chances in this marketplace than any other. Think of the stock trading or bond trading business, they will not be too much volatile. So, if you can think about this information positively, there are more chances of winning some good profits.  

All you will have to do is secure your investment and trade with it. Because too much of investment will not do any good for your trading performance. Think about the investment of a single figure sum like $2 to $5. There is a way to improve your trades even with that money. The system is called margin trading. It helps the traders to leverage for the lots. If you want to make an order with about 1:100 ratio, it is possible. From there, there will be about 0.02 to 0.05 standard lots. So, do not invest too much into your trades. It just increases the chances of losing more money. 

Try to stick to the rules 

It’s very normal to have a few losing trades in a row. You might be trading the market with a balanced trading strategy but there is no guarantee you will win all the trades. The professional Singaporean traders prefer CFD trading with Saxo since they always offer the best possible trading environment. Being their client you will have free access to SaxoTraderPro, a robust trading platform which can be used to conduct advanced market analysis. 

There must be a decent profit target for your business 

Besides the right management of the risks, the traders will also have to concentrate on the profit targets. It will need the right execution of the trades. If you can work with the proper amount, there will be a good performance. As the most important work for placing an order into the market is analysis, the traders will have to give themselves some proper chance. That will be possible with decent profit targets. For that, you must know about your market analysis strategies. If it is not suitable for too big of targets, it must not be designed in that way. 

Good trading methods must be thought for relaxation 

A proper trading method selection will also help out with the trading performance. Think of a big timeframe trading strategy and how much it can help you. With long term trades, the traders will be able to manage some good pips from the signals. This is because the long term trading process gets more pronounced trends. Those are also easy to analyze with daily charts. 

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry

Crude Oil Price Bounced Back Sharply Vs US Dollar

Crude Oil Price Bounced Back Sharply Vs US Dollar

  • – Crude oil price surged higher after a sharp dip towards the $67.50 level against the US Dollar.
  • – There is a major ascending channel forming with support at $68.30 on the hourly chart.
  • – Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 04, 2018 was released.
  • – As per the report, there was a decline in the crude oil inventories by 1.850 million barrels.

 

API Weekly Crude Oil Stock

Recently in the US, the API Weekly Crude Oil Stock figure for the week ending May 04, 2018 was released. The market was positioned for a minor rise in the crude oil inventories by roughly 1 million barrels.

 

However, the actual result was better as there was no rise in inventories, instead, there was a decline in the crude oil inventories by 1.850 million barrels. Looking at the gasoline stockpiles, there was a drop of around 2.1 million barrels, and inventories of distillates declined 6.7 million barrels.

 

There was a sharp bounce noted in crude oil price from the $68.00 support and the price moved back above the $70.00 level.

 

Oil Price Technical Analysis

There was a sharp downside move in crude oil price recently from the $70.70 swing high against the US Dollar. The price declined heavily and traded below the $70.00, $69.00 and $68.00 levels. It traded close to the $67.50 level before buyers appeared.

 

Oil Price Technical Analysis

 

A low was formed at $67.55, and the price bounced back sharply above the 100 hourly simple moving average. It successfully broke the 76.4% Fib retracement level of the last decline from the $70.72 high to $67.55 low.

 

This means the price could continue to move higher and it may soon break the $70.72 high. Above the mentioned level, the price may even test the 1.236 Fib extension of the last decline from the $70.72 high to $67.55 low.

 

At the moment, it seems like there is a major ascending channel forming with support at $68.30 on the hourly chart. As long as the price is following the channel and the 100 hourly SMA, it remains supported for more gains above the $70.50 level.

Tags: , , , , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry

Free Live Expert Webinars

Free Live Expert Webinars

Power your trades with industry tips and knowledge from our forex experts by signing up to our free weekly webinars.
 
Our webinars are designed to improve your FX knowledge and help you hone your trading skills to give you the confidence you need to trade the markets! Whether you are a beginner or an experienced trader, our seasoned market analysts will guide you through key forex strategies and concepts.
 
Every live webinar is followed by a Q&A session, giving you the opportunity to put your questions to the presenter!
 
We are committed to being with you every step of the way in your forex trading career, and by providing valuable forex education, we can give you a solid foundation to begin trading.
 

CLICK HERE TO JOIN OUR LIVE WEBINARS!

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry

Join Our Newsletter:

US & Canadian Traders Welcome Make the trade