Forex Strategies Forum

[Rom]

Money management
1.Choose total risk per month. Let's say we have $100, total risk is set to 100%
2.Find out how many trades there will be in one month, let's say 4
3.Divide $100 by 4 to get risk on each trade
4. Find SL. If SL is previous days low and that distance is 125 pips, then divide $25 by 125 to get lotsize (mini account, $1 per pips). That will be lots 0.2
5. In case of trailing SL, move SL each night

Sorry, Dirk Du Toit communicates some different attitude
Money management
1.Decide max drawdown, like 40%
2.Trade one currency only
3.Use mutiple entries each with leverage 2 in your direction
4 Use max 5-8 contracts according to your preference

Max leverage will be 10-16. Since first contract has leverage 2 there is little need for SL, just monitoring. When you are in profit define TP levels for contracts one by one for each day, or take profit day by day.
.

[tradefx9]

In opinion, newbies may use "Trade Forex based on Technical Analysis", The Forex market responds well to technical analysis due to its high volume and high volatility. A Forex trader could trade many pairs almost exclusively utilizing technical analysis as long as an awareness of potentially market-moving economic events is maintained. A Forex technical trader may choose to remain on the sidelines of the market while fundamental forces are likely to predominate.

[Rom]

Dirk Du Toit states the opposite repeatedly

We are very critical of most attempts to apply technical analysis on a very short term
(intraday) basis, with the illusion that it provides clues to excellent entry and exit points with pinpoint timing allowing for relatively large positions (highly leveraged). We are critical of closely placed "risk/reward ratio" stops. We are also critical about attempts to equate fundamental analysis with trading economic data releases. Both these schemes are propagated by forex brokers in order to provoke more trading and bigger trades from traders. More trading and bigger trades are increased revenue for the brokers and not for traders. For us, traders, it means higher costs and the higher your costs to trade as a percentage of your capital the better you must trade to make a profit. We have explained that economic data releases are clearly volatility triggers but we are convinced that it is not possible for even the most experienced and adept traders in professional trading environments to consistently make a profits trading economic data releases.

How large is randomness? What is true on daily timeframe is not true on 5 minutes timeframe.
While continuation of previous day is likely on daily timeframe, that probability goes to nothing on 5 minutes timeframe

forexreport.pdf

(642.49 KiB) Downloaded 79 times

What moves the market intraday is for us unpredictable news releases and big players, not price action. But those who don't know what is going on in the market, like UN just decided on a no-fly-zone in Libya, will be in the blind zone about catching the big picture.

[Leighto]

Hi,
Newbies may use Trade Forex based on Technical Analysis, The Forex market responds well to technical analysis, due to its high volume and high volatility. A Forex trader could trade many pairs, almost exclusively utilizing technical analysis as long as an awareness, of potentially market-moving economic events is maintained.