So how do we spot a trend? The indicators that can do so have already been identified as MACD and moving averages. These indicators will spot trends once they have been established, at the expense of delayed entry. The bright side is that there’s less chance of being wrong. On GBP/USD’s daily chart above, we’ve put on the…
To increase your chances of profitability, you want to trade when you have the potential to make 3 times more than you are risking. If you give yourself a 3:1 reward-to-risk ratio, you have a significantly greater chance of ending up profitable in the long run. Take a look at the chart below as an example:…
An oscillator is any object or data that moves back and forth between two points. In other words, it’s an item that is going to always fall somewhere between point A and point B. Think of when you hit the oscillating switch on your electric fan. Think of our technical indicators as either being “on” or “off”. More…
How much should you risk per trade? Great question. Try to limit your risk to 2% per trade. But that might even be a little high. Especially if you’re a newbie forex trader. Here is an important illustration that will show you the difference between risking a small percentage of your capital per trade…
In the previous grade, popular chart indicators were discussed. We’ve already covered a lot of tools that can help you analyze potential trending and range-bound trade opportunities. Still doing great so far? Awesome! Let’s move on. Welcome to Grade 6! In this lesson, we’re going to streamline your use of these chart indicators. We want you…
So we know that risk management will make us money in the long run, but now we’d like to show you the other side of things. What would happen if you didn’t use risk management rules? Consider this example: Let’s say you have $100,000 and you lose $50,000. What percentage of your account have you lost? The…
It takes money to make money. You need trading capital. Everyone knows that, but how much does one need to get started in forex trading? The answer largely depends on how you are going to approach your new start-up business. First, consider how you are going to be educated. There are many different approaches…
Risk management is one of the most important topics you will ever read about trading. Why is it important? Well, we are in the business of making money, and in order to make money, we have to learn how to manage risk (potential losses). Ironically, this is one of the most overlooked areas in trading. Many…
Not all trading platforms are created equal. Heck, even MT4 platforms aren’t all the same! They come with different sets of indicators, depending on your broker. Some come with just the basics, while others come equipped with all sets of tools and advanced studies to help you with your trading decisions. In a way, that’s…
Now that you’ve had a little bit of practice with the indicator tools that the MT4 platform provides, it’s time for you to move on to the next stage of your MT4 training: how to install an expert advisor. An expert advisor, otherwise known in the forex world as an “EA,” is basically a program that you install…