Author: rcanessa - Page 71

Markets4you Review 2025 – Forex and CFD Broker

Markets4you-Broker Review Markets4you –ECN/STP broker from Europe specialized in Forex and CFD -Tight spreads and low commissions -It offers autotrading solutions Visit Broker Website Markets4you is a Forex and CFD online broker operating as an ECN/STP and Market Maker. It is owned by E-Global Trade & Finance Group Inc., a company registered in the Virgin Islands. Currently, it has offices in … Read more

Forex Money Management Guide

by rcanessa

In this section, we will try to explain what is money management, what are the different techniques used when applying it, as well as other concepts related to this topic.

Introduction to Money Management

Money management is probably the most important aspect of managing a trading account. It is something so simple that can be learned in ten minutes and certainly is one of the most important causes of losses for most traders, usually in a reduced time.

As the name suggests, Monetary Management is nothing more than a set of techniques that help us to determine the size of our position to control potential losses that may arise when the market move against us.

Due to the high leverage offered in the Forex trading, many inexperienced traders assume a higher risk than any investor should take, resulting in hardly recoverable losses.

Scalping Guide for Traders

by rcanessa

What is scalping?

The scalping can be defined as a very effective (but also risky) trading technique which has become one of the most popular strategies in recent years. It is also known as “Quick Trading” and is one of the most effective trading strategies used in highly liquid financial markets such as Forex. Scalping is a series of short term operations (buy and sell fast trades) over the trading session, which can reach even the hundreds of daily trades with ease. In this case, it involves transactions that may take 1-2 minutes on average and sometimes even a few seconds.

The scalping is classified as an intraday trading technique, ie transactions whose duration is less than a day and can last from several seconds to several hours. Through the scalping, a human trader can make up to 20 or more buy or sell buy and sell trades in an hour to profit from micro-movements of the market. Automated trading systems based on computers are capable of a much larger number of scalping operations per day.

Common money management techniques for Forex

by rcanessa

In this article we will discuss some of the most popular techniques of money management applied in trading. Although the topic can get complicated and also there are many techniques, we will focus on the most important.

Fixed Capital Percent Technique

This technique determines that we should risk the same percentage amount over the size of our trading account in every operation we perform. It has several advantages, for example, when we win, we will gradually increase the size of our position, thus harnessing the power of compound interest, while when we lose, we will reduce the position size, protecting our account from further losses.

It is probably the most widespread money management technique among traders, because a priori, is the one that offers more advantages.

Basic Rules for a Proper Risk Management

by rcanessa

Of course no one likes to lose money under any circumstance, but losses are inevitable in trading and that is why we need some rules to keep them controlled at all times. Therefore we include the following basic rules of risk management:

1. Do not risk more than 1% on each trade. This will give you a chance to survive a series of losses (draw downs) without affecting your account too much. We must bear in mind that what makes a trader wins in Forex and other financial markets at the long-term are the accumulated earnings of all winning trades so we must begin limiting the losing trades.

We will talk later about what technical features must have a successful trading system, but the point is that we must find or develop a model with a high percentage of effectiveness (Win Rate), so that the amount of points earned will become greater than the amount of points lost at the long term.

The Money Management – Basic Principles

by rcanessa

What is money management?

Many traders believe that the most important thing in trading is the knowledge of everything related to the market analysis or having a trading system with high reliability. It is true that these aspects are part of the success of a trader, but are only one part. However, one of the most important aspects of trading refers to the risk control and money management, because if we enter the market without a contingency plan for the worst case scenario, we are betting, not trading. We can spend much effort improving our trading system and gain knowledge about the market, but unless we develop a money management strategy we will not survive long in an environment as unpredictable as the market.

Money Management or Operational Risk Management is defined as the process of analyzing the trades according to risk and potential profits, determining how much risk, if any, is acceptable, and managing each position to control risk and maximize profit according to the equity in the trading account. Following the principles of preservation of capital, money management may consist of anything from a few simple rules to complex portfolio management theories. However, for most traders and investors, a common sense approach is more than enough to start earning money.

In this section I hope, for a moment, we will divert your attention from the search for the perfect system, so you can discover that you can turn a loser system into a winner just by changing the rules of money management.

Affiliate program of InstaForex

by rcanessa

Instaforex broker review

The Forex broker InstaForex has an affiliate program of its property, which was implemented in order to promote its services as a broker and get new customers through affiliates. These affiliates have at their disposal multiple promotional tools based on the Internet which are free to use. Besides this, this program has the advantage that it has a very attractive commission system and a sub-affiliate program that allows the member to increase profits.

Thus, the InstaForex affiliate program is an interesting option for monetizing blogs and websites whose subject is related to the Forex market.

Forex broker InstaForex

by rcanessa

Instaforex-Forex Broker Review Instaforex is a Forex broker from Russia which was founded in 2008 and offers a wide range of options for trading besides Forex. For example the investor can trade with oil, gold, binary options and Contracts For Difference based on metals, stocks and commodities. This company also offers automated trading solutions, including a social trading network based on … Read more

The Interest rates

by rcanessa

What is the interest rate? The interest rate is the rate paid by a borrower for the use of money borrowed from a lender. For example, a company (borrower) asks borrowed capital to a bank (lender) to buy new assets for their businesses, in exchange for lending money, the lender receives interest at a predetermined rate. The interest rate is … Read more

The Debate of the Future: The Interest Rates in the United States

by rcanessa

Officials of the U.S. Federal Reserve (Fed) made the decision to continue to cut the massive bond buying program.

But it seems that in the future the Fed will have to make a difficult decision: choose when to raise interest rates. The Fed President Janet Yellen pointed out that there are three “big” issues that officials should discuss;

The state of the labor market
Compliance with the inflation target of 2%
Factors that could threaten the economic recovery.

Some analysts are already starting to see a rise in interest rates in 2015 if economic conditions are thin.

Yellen and colleagues will discuss what kind of economic conditions define the stage for a rise in interest rates. It is necessary that the Fed clearly discuss on this topic in order to more accurately anticipate when it will happen.

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