The Frontiers Of Trading

  By:  Ivan Cavric      As already stated, you will need to be able to use leverage in order to acquire worthwhile profits. However, you must proceed with caution because the poor utilization of leverage could expose your account balance to excessive levels of risk. For instance, some Forex Brokers offer leverage as high as 400:1. Although this sounds impressive and very desirable, you must appreciate how to exploit such a facility accurately before trying to use it in full earnest. Here are some important features about leverage that you must be fully aware of: Always remember that using larger levels of leverage also increases your risks significantly. It is important to monitor your account balance regularly and utilize stop-loss orders on all your open positions in order to restrict your risk exposure. Although using stops is good practice, you must still understand that you will increase your risk exposure significantly if you start leveraging in a reckless...

  By:  Ivan Cavric If you do not master the concepts of money management quickly, then you will discover that margin calls will be one of your biggest problems trading. You will find that these distressful events must be avoided as a top priority because they can completely wipe out your account balance. Margin calls occur when price advances so far against your open trading positions that you no longer have sufficient funds left to support your open positions. Such events usually follow after traders begin to over-trade by utilizing too much leverage. Should you experience such catastrophes, then you will have to endure the pain involved in completely re-building your account balance back from scratch. You will find that this is a distressful experience because, after such events, it is normal to    feel totally demoralized. This is the exact situation that many novices end up in time and time again. They scan charts and then think that by doing so they can make qua...

  By:  Ivan Cavric The most important part of how to make money using the no stop, hedged, Forex trading strategy will now be covered. In the preceding articles in this series I reviewed trading without stops, not being concerned about which way the price moves and places to cash in on profitable transactions. Now I will show how you would make money buying and selling simultaneously using the grid strategy. The no stop, hedged currency trading grid system uses the rule that one should be able to close a transaction at a gain no matter which way the market moves. The only way this is logically possible is that one would have a buy and a sell transaction active simultaneously. Most traders will say that doing this is not recommended but let’s look at this in more detail. Assuming a grid with grid gaps of 100 pips. We are going to use the simplest formation to show the principles involved. This formation is the 100% retracement formation where the price goes up to a grid lev...

  by:  Ivan Cavric One rule of thumb that every aspiring entrepreneur should remember is that to make huge profits, you should know how to do it by yourself—and not rely on other’s efforts. Being independent from other people will help you determine what things are best for your business. Such rule applies on all types of investments, including foreign currency trading, or mostly known as Forex trading. It cannot be denied that Forex is the largest existing market around the world, which is estimated to have an excess of 2 trillion U.S. dollars worth of foreign currencies are traded each day. It is larger than the magnitude of the New York Stock Exchange, which is approximately 50 billion U.S. dollars. Thus, Forex market exceeds all combined equity markets around the world. With such huge wealth circulating around the Forex market, one of your financial goals is to grab a major slice of that $2 trillion average daily turnover in the market. How you will be able to get a sub...