Making a Living in Forex Trading ~ Forex trading pip

Tuesday, September 13, 2011

Making a Living in Forex Trading

3:58 PM

Forex Bond

I am often asked whether it is really possible to make a living trading the forex market. I would say that certainly does not deserve their lives only possible, if you have no idea what a simple money management trading system is. If you can understand what forex trading is money management, you will live on not only wealth but to create in a relatively short time. So I often say that if you are looking for a job, you can try Wal Mart. Iheard that are hiring part-time workers.

Can understand a good tool that can help you work as a computer. They can be purchased at most local stores for a minimum of $ 5.00. Then you might want to open a forex demo trading account and place a trade. Observe what happens to the numbers that indicate the income statement and get an idea of what the value of a PIP is in your account. Then you can develop a trading plan is purely hypothetical.

Forex Trading Pip

After learning a little 'Forex trading is how it works, you should begin to get an idea of what to have a realistic expectation for results in PIPS over a given period. Then you decide what would be a prudent risk management plan. Some say that no more than 2% of capital is a good number. This figure is of course based on a false belief that the industry is not possible, a victory to have high ratios of loss in forex trading. Regardless, it is a good conservative number. Then start easy with a number that representsthe amount of capital with the management of the project and what would happen if you win successfully with a realistic value for the loss were to begin. How many PIPS will you earn? Winning the loss ratio, the number of winning trades compared to the number of those who lose. Risk-return ratio is the average number of loss compared to the average number of seeds to win trading pips. What is your average profit per day or per month? What do you do to your capital?

The next step is to observe the amountMoney to cover living expenses. If the amount of your monthly profits at least twice as much as the amount needed to start living, composed of 50% of your monthly profits. From this point on, you're making a life and your trading account each month increases, while the amount you take will increase each month, from that point onwards. What could be better?

Making a Living in Forex Trading