free forex trading signals
3850 1. You can lose three months of profit in one loss trade!I know – it has happened to me. So what is going on?This does not make sense!Well, the first thing that you must be aware of is that my references are dealing with contestants in trading competitions, Signal Providers that want to impress possible clients with a close to 100% win ratio so that they can get more followers, developers of automated systems that want to sell more of their robots, etc. But why are they so successful and show such excellent returns?You must understand that there is a relationship between Profit and Risk – the higher the Profit the higher also the Risk. Systems that have high win ratios normally also have large draw downs, long transaction durations and large losses from time to time that can wipe out many months of profits in one go. Look at this extremely profitable trader’s performance over a 3000% return in one month!month of Feb has just started: When people see these figures their eyes lit up tripling your account equity in three months!Greed starts to creep in and visions of a luxury life, which they have always dreamed about, appear. This fever can overcome all fears and caution. But wait…. His maximum draw down is 94. 32%!And look what the calculated Risk is: Source: So the risk of losing all your money with this system is extremely high!96%!And, Yes!You have guessed right. He is a scalper using NO Stop Losses!But traders following this high risk strategy often have the best performance figures and the most satisfied followers / customers.
forex trend trading
Some experienced forex traders prefer to use technical stop loss levels in order to protect their accounts.
currency day trading
It is very important to learn stay cool and emotionless while trading in the Forex market.
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free forex trading signals