Technical Analysis - Certificate of Completion (Risk Management)

The tricks of the trade are endless.  Look what I got for completing the Forex Trading Basic Course on Technical Analysis.  These people really know how to encourage you.  Hopefully the support and encouragement doesn't stop even when you've opened a live trading account already.  (Sound FX: crowd cheering and clapping! I take a bow and thank you all)

Certificate of Completion: Technical Analysis for the Happy FX Trader.  Given by Daily FX.

I found another set of online videos that will compliment the Forex Trading Videos from Mario Singh and Mark So that I posted earlier this week.

This time it's from FXCM's site called Daily FX.

Here's the link:

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Daily FX: How to Trade Forex Online Videos

These videos are more in-depth, containing more than just the basics.  And after each section you get to participate in a quiz to test what you've learned.  It's a good way to access whether you've grasped the concept or not.

I personally enjoyed the videos on Carry Trading and Risk Management.  Everyone seems to be recommending similar approaches:

• Follow a risk-reward ration of 1:2
• Risk only up to 5% of your equity in every trade (Daily FX)
• Risk only up to 3% of your equity in every trade (Mario Singh)

--> Daily FX however recommends using the lowest leverage possible to be conservative.  Based on their studies, traders who followed a conservative approach tend to be more successful.  I guess this happens because traders seldom really follow all the rules! hahaha (^o^)v  For now I'm going with Mr. Singh and agree with him and say that one must not be scared of leverage - it is a great tool to help maximize your profits when used properly.

Here's how to compute the no. of lots to buy to reduce your risk to a given percentage per trade.  This was taken from one of the seminars by Mario Singh.  I'll explain this on a future post as I need to go for now.  If you can't wait that long, a similar concept is explained in the Risk Management video from Daily FX.

(Thought Bubble: Everything's in place, it looks easy enough to do, can't wait to open a live account next.)

Happy Forex Trading!
Pips Be With You!