Forex Indicators
forex beginer?
i have been doing a practice acount for a while and know how to read the charts i am interested in starting with a few hundred dollers and adding a little bit each check what i dont understand is the leverage 1:10 all the way to like 1:200 what is better why is it better does it effect the pips?? what is recomended for a beginer using small amounts of money??
Public Comments
- Great! Good for you for getting your hands dirty... You choose your leverage depending upon how much stress you can take. 1:10 means $1 = $10 in your trade 1:200 means $1 in your trading account can control $200 So it does effect the pips. If you had $1000 in your account with 1:10 leverage - you are effectively trading $10,000 Whereas if you had 1:200 leverage you are controlling $200,000 If you are just starting out, start with the least money possible and the least leverage just to get a feel of trading.
- Before you launch into the deep you might want to track your demo account trades with a Forex Utility tracker that shows your betting average. Its very easy to lose all especially if you are leveraging at 1:200. Say if you start with $300. And everytime you concede $30. 10 trades of loses and you are out. And you do not want to put a stop loss so small that will stop you out every time. The choice of currency pairs is critical. For a start you might want to start with a lower volatility pair. Like Eur/Gbp. Take note of Trader's Psychology as well. Adrenaline will flow. And you want to prove yourself everytime you lose. And even winnings can make your decision unobjective. I suggest take a "time off" after every trade. Till the previous trade is no longer in your psyche. And every trade is a new trade. Money management is very critical. Traders Psychology is another leg. Both account 80% of trading. Last 20% is trading methodology like charts etc. But many people just do it the other way round. Dr Aleander Elders do an excellent job in explaning. Utility Checker : @ http://www.geocities.com/lcming/Forexbooks Dr Alexander Elder @ http://www.geocities.com/lcming/ForexForex
