Access to leverage a large selection of
forex brokers and multiple investment strategies that make investing in the forex is easy. Note, however, that the amount of money which we are able to devote to start, is a decisive factor as to whether the investment we will achieve substantial gains. The amount of starting capital is of paramount importance. To say that "money makes money" is true also for Forex. With favorable conditions in the foreign exchange earnings can be worked out by opening large positions, often repeating the exact same purchase.Buying the right amount of currency and the ability to repeat purchases is what distinguishes the professional from the novice investor. However, this can be achieved only having sufficient funds.
Reality! Dreams are not for investors!
Every investor wants to invest a small amount of funds and becoming a millionaire - preferably in one transaction. In reality this is impossible - especially if we invest enough resources. But patient investors can slowly build up their capital investment and at some point be able to rotate a large amount. Usually, however, lack of patience. With a few funds, investors are feeling the pressure and are greedy for a quick profit, take bigger risks than they are able to accept and invest with a very large lever. (A safe investment with little money to start, read the article: Investing with the use of mini- Flight recipe for success ).
Professional managers of investment funds usually produce their products less than 10-15% profit per year - with the huge funds available. Individual investors do not realize (or do not want to give account to herself) that it is such a small amount. Often with few resources, they believe that they will be able to double within a year the status of your account in the forex or earn even more. But the reality is much more brutal.
You have sufficient resources to succeed?
The principle is very post. The more you are able to be invested at the start, the better. The greater amount of resources allows you to open more positions (buy larger quantities of currencies), and thereby reap much greater benefits of day trading (more on day trading you'll learn from the article:Day trading - short-term investment strategies .) Having insufficient funds in your account, we can not count on large and quick profits, unless we decide on a very risky leverage. However strongly advise against irrational use of leverage only for quick profits.
One of the most common targets for day traders make a profit every day, so that over time allow them to gain a peaceful life. The easiest way to achieve this, the opening of many of the same item. An investor who is able to invest in five positions, logically, is able to earn five times more profitable. Of course, provided that each investment is not invested too much capital - as in the case of such reversal does not lose all the funds, and only a small portion, and is almost immediately able to use reversal to open new positions and the earlier loss powetowania . This is only possible with the right size amount in your account. There is no rule that would define the number of positions, which should open by the investor. Each trader should analyze the average profit from each transaction and on this basis should calculate how much each item should open in order to achieve the expected profit.
Use the lever?
The lever opens the door to big profits, but always involves risk. Lever mechanism alone is tempting. By using leverage, we are able to open much higher position than would be possible only by using the money to our account. Since the maximum allowable level of risk of losing their own funds in each investment is 3% of the funds held in your account (For more on how to invest in maintaining the principle of not risking more than 3% of you will learn from the article: Investing with a mini flight recipe for success ) , lever is really a good solution, but provided that this risk level of 3%. Unfortunately, many investors are allocating a small amount of money to start, uses levers recklessly and often risking too much resources.
The investor, who credited his brokerage account amount $ 1000, can be used to invest an amount up to $ 100 000 (thanks to the lever 100 to 1). This allows you to significantly increase profits, but may also result in greater losses. The use of such leverage is appropriate as long as it maintained the principle of not risking more than 3% of your capital in your account. This means that with the account just such a number of measures by purchasing currency, we should not risk more than $ 30For variable currency market, it will give us control over our funds and for tripping command stop-loss will not cause too much loss.
Every investor should learn patience. You can not be tempted to fast commute $ 1000 to $ 2000. It is possible, but definitely better manage risk sensibly and slowly build your profit than in the case of a sudden reversal of the trend, losing everything in a few hours.
Most investors start the adventure of having too little forex funds. The amount of $ 1000 dollars is the best starting level, because it allows the efficient use of leverage and, above all allows you to minimize risk by maintaining the principle of 3%. If you start with forex adventure with a smaller amount, you must be very well prepared in terms of content and you must prepare for possible losses. With an amount less than $ 1000 U.S. dollars an investor also needs to be very patient.Open positions should be based on multiple studies and skillful reading of indicators. Also remember to first check on
forex training free account.
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