When you are simultaneously trading multiple currency pairs in your trading account, always make sure you’re aware of your RISK EXPOSURE. For example, on most occasions, trading AUD/USD and NZD/USD are essentially like having two identical trades open because they usually have a positive correlation. You might believe that you’re spreading or diversifying your risk by trading in different pairs,…
Are you a visual learner? Do you like looking at sexy women or hunky men? If so, perfect! Take a look at the following tables. Each table shows the relationship between each main currency pair (in orange) and other currency pairs (in white) over various time frames. Remember, currency correlation is presented in decimal format by a…
Have you ever noticed that when a certain currency pair rises, another currency pair falls? Or how about when that same currency pair falls, another currency pair seems to copy it and falls also? If the answer is “yes,” you’ve just witnessed currency correlation in action! If you answered “no,” you need to stop doing less important…
There we have it… the coolest guide EVER on scaling in and out of your trades. Let’s see how much of this information you have soaked into your noggin. Here’s a quick review of the rules to safely scale in and out of trades. Always use stops. Only add to losing positions if the risk of your…
Now on to the fun stuff. If you catch a great trending move, scaling into it is a great trade adjustment to increase your max profit. Since we all can’t be like DJ Khaled where all he does is win, there are rules to follow to safely add to open positions. So unless you are DJ Khaled, let’s go…
In the previous lesson, we discussed how to scale OUT of a trade. Now, we show you how to scale IN a trade. The first scenario we’ll cover involves adding to your positions when your trade is going against you. Adding more units to a” losing” position is tricky business and in our view, it pretty…
As mentioned earlier, scaling out has the obvious benefit of reducing your risk as you are taking away exposure to the market…whether you are in a winning or losing position. When used with trailing stops, there is also the benefit of locking in profits and creating a “nearly” risk-free trade. We’ll go through a trade example to show…
Here are some easy-to-memorize tips that will help you to make smart pivot point trading decisions: Pivot points are a technique used by forex traders to help determine potential support and resistance areas. There are four main ways to calculate for pivot points: Standard Woodie Camarilla Fibonacci. Pivots can be extremely useful in forex since…
Now that you know how to set proper stops and calculate the correct position size, here’s a lesson on how you can get a little creative in your trading. For those trading multiple position sizes, you can get really flexible and creative on how you manage your risk by “scaling” in and out of your positions….
The standard method of calculating pivot points is NOT the only way to calculate pivot points. Just like listening to BTS is not the only way to listen to K-pop. (Blinks! Annyeonghaseyo!) Traders have worked on improving the original pivot point and now there are other ways to calculate for pivot points. In this lesson,…