How much money can be made from forex trading? The question is always in the minds of investors wishing to enter the field of forex, because the area of forex or currency trading that investment areas, easy access, it does not require a large capital, unlike folders, other investment, you can capital is extremely simple and not about the$ 50 to start investing within the forex world.
We have previously explained about the minimum capital in Forex Trading and besides that the forex market does not need a large capital is also available throughout the day, all days of the week, and the trading mechanism that is conducted through it makes it easy to get a lot of profits in it by trading on the selling prices,and buying the currencies that are
As we explained earlier, the forex market is not risk-free, any investment may sometimes hide profit, and may hide loss other times for investors inside it, but the problem here is not to be able to anticipate losses, but to know how to manage risks so that you can avoid losses as much as possible, and make profits. A basic rule that you should follow during your trades is not to risk more than 1% of your capital on each trade you make, in order to avoid significant capital losses if the transaction does not go as expected.
Example of risk control
If you have a capital in your account of$ 3,000 this means that the single transaction you make will be 30 or less, and that's because if you lose that deal you will only lose 1% of your total capital, and this loss will not significantly affect your future investment.
You may think that losing$ 30 is a very small loss, but in reality you will lose it in one trade, and over the course of the day, during day trading you may make more than one trade, and this will therefore accumulate losses for you to eventually find more than you can imagine, so follow the above rule, and do not
Daily trading strategy in Forex market
Trading on the forex market has many strategies, and the longer you have experience in this field, the more strategies you acquire, but if you are new to that field, you are only required to understand one strategy to work with, which is to measure the win rate, the risk ratio of each trade you make, and here's a breakdown of them.
Win rate measures the trades you can win out of the total trades you will win, for example if you make 100 trades, of which you only win 55, your winning rate is about 55%. Having a win rate of more than 50% is often ideal for most traders, although there are traders who can achieve more, but as long as the Trader does not fall below 50%, he is in the safe zone.
If, for example, a trader loses 10 points of the total lost trades he has made, but at the same time gains 15 more trades, he is thus able to make more profits than the losses he has incurred.this means that if a trader can only make a profit of 50% of the total trades he makes, he thus achieves profits, achieving more winning trades is one of the important strategies that traders use in their daily trading.
Example of trading
If you have a capital of$ 5,000 and want to trade it, here's a decent profit rate for you below 55% on your trades, so when you take the risk of making trades, that risk should be only 1% of the capital, i.e. us 50 on each trade you make. You should also know when to use stop losses, depending on the previous example should have put a stop-loss order just 5 points from the entry price trading.
Leverage in the world of trading and investment is something that is used a lot within the global stock market, but it is nevertheless, the main factor that makes the world of the stock exchange purely suspicious by Arab Muslims make them do not want to enter it, and we have mentioned in previous articles a detailed explanation of what is leverage in the world of trading and investment, And what is the opinion of jurisprudence in them in detail? And what is the main reason on the basis of which it was forbidden?
In the forex market you trade a pair of currencies together, say, US dollar, Canadian dollar, on a capital of 5,000 here you risk 1% on each trade i.e. 50 per trade, and each PIP will be worth$ 10 with a standard contract (100,000 units of currency value) so you can stop loss at a limit of 5 pips, meaning the stop loss rate will be)