Friday, March 24, 2017

The 5 Golden Rules for Profiting in Forex

We are going to define a series of rules that although they are basic and for some quite evident it is important always to take them into account since without them it is impossible to obtain long term profits by doing forex trading. We must keep in mind that gaining profits in forex is not easy. Among other things, we need a good training that we will certainly offer from invertirenbolsaweb. Without going further, let's cite the set of inviolable rules in forex:



Forex trading is not a casino

The first rule has to do with the trading concept itself. Many beginners in forex try to guess with more intuition than training in which direction the market is going to move as if it were really a bet on a casino or a game of chance. The experience ends up proving that this type of traders ends up losing their account in a short time. The foreign exchange market is not a casino, the market evolution follows a logic that has to be interpreted and requires knowledge of fundamental analysis (based on news), technical (based on graphics) or both.

To gain benefits in forex you need a system

To gain benefits you need a set of rules that define exactly when to enter the market and when to exit. It is very easy to fall into the temptation to skip the rules that one has defined when the market advances in your favor to try to obtain greater profits or try to take the revenge to the market to try to recover a losing position. It is equivalent to put a simile to skip a diet that has proposed our endocrine. Do you know anyone who has had a diet by skipping it? I certainly do not. You can go to our section of Investment Strategies where you will find many trading systems that you can try and take as a basis to develop your future trading system but please always follow the rules.

It is imperative to have good money management

It is not enough to have a good trading system for profit. Money Management is as important or even more good money management. The most typical mistakes is to risk too much in each operation. Experts agree that you should not exceed 2% of account loss in a single operation. This is because if we have a poor streak of 5 or 10 losing positions in a row and risk for example 10% of our account would be practically impossible to recover since it would be a hole too large. A good Money Management allows us to fail more times and recover again to reap benefits again. Keep this in mind to set the stop loss of your trades. For this you need to know what level of leverage you are using.

A very high leverage will mean that soon the market goes into our account and we will have lost a significant percentage of our trading account so we do not recommend leverage much greater than 1:20 unless you have very clear what you are playing Really.

Many brokers say in their advertising leverage levels as high as 1: 666 or even more because it is something that greatly surprises the novice trader since it allows you to buy a very large amount of a currency pair with a balance available in your very small account. Actually with a very high leverage level it is very difficult to survive in the market since a particular currency pair as its price changes only 0.1% (which is very feasible) against us would do us a terrible damage In our account and practically irrecoverable.

If you want to know more about Money Management we recommend reading our article about the 5 basic rules of Money Management
First you must know your losses before counting your profits

Extending the previous rule about Money Management (note if it is important) we must know how much money we are willing to lose and how much would be the estimated profit. Most professional traders and experts agree that you should wait with your trading system to earn at least twice what you could lose in an operation. Thanks to this you can keep a 50% success in your operations and obtain long-term benefits.

Forex Trading Psychology

You probably have read it in many places how important a psychologist is to a trader. The only thing we want to emphasize here is that you must act with great prudence since being too greedy will inevitably lead to a disastrous trading. It is important to try to win in all operations that we can even a small amount and cut the losses in time when they occur since in any trading system is absolutely unavoidable to get lost in some positions, sometimes even gusts of several operations followed this way That we must cut in time (remember Money Management)

We must learn to trade forex from our mistakes. If our trading system after a long time does not prove to be profitable we have to improve it but never try to take the revenge to the market to try and get revenge for operations that have gone wrong.

Saturday, March 11, 2017

How much money do I need to start investing in the stock market?

This question about how much money is necessary to start investing in the stock market is one of the most frequent doubts that any person who is valuing the possibility of investing (whether in Forex, stocks, indices, raw materials, etc.) has. Obviously the result you can get can vary considerably from start with € 100 or € 10,000 but it is also really complicated to indicate an exact or approximate figure that answers the question without further ado.




The appropriate amount will depend mainly on the level of knowledge and the strategy of each investor, his risk profile and his economic capacity. Nowadays most online brokers will allow you to open an account with very little money (from € 50 or € 100 or even less), so not having significant capital is no longer an obstacle when you start doing Trading. Of course it is better to start with little money and to learn not to do it at all or wait until you have more money without having learned and losing everything in a couple of operations.

Our recommendation is that you start with an amount with which you feel comfortable and without pressure. An amount that you can risk without problems and that is enough to open and close positions while you learn and optimize your investment strategy. That is why this adequate amount to start investing is variable according to the profile of each person and their financial situation.

One of the basic rules of Money Management is that you invest only an amount that you are willing to lose. If you resort to trading in a situation where you need money urgently you have all the ballots to increase your problems instead of solving them. You will act under excessive pressure and it is easy for you to rush into making decisions.

The most important thing when you start investing is to survive, to withstand the maximum possible time while operating while learning and build your strategi trading terbaik to be able to eventually start to win.