Risk Management 101

A more complex aspect of risk management is keeping track of several entries across different currency pairs. After all, it can be overwhelming when you are watching various setups with multiple entry...
Risk Management 101

As discussed in the previous section, the use of an equity stop and a chart stop can be combined to calculate position sizes for each trade. Many beginner traders make the mistake of setting the posit...
Risk Management 101

Using stop losses is a recommended risk management practice, as this will allow you to set a point where you think your trade idea might be invalidated. From there, you can be able to calculate your p...
Risk Management 101

As discussed in the previous section, leverage can get tricky and may lead to margin calls when you don't know how to manage it properly. This section illustrates more examples on the common mistakes ...
Risk Management 101

One of the biggest advantages to trading in the foreign exchange market is the ability to take advantage of leverage. This enables a trader to use a small deposit to control much larger contract volum...
Risk Management 101

Drawdown is defined as a considerable reduction in your account due to a series of losing trades. This can be calculated by getting the difference between the highest level of one's account and its lo...
Risk Management 101

In forex trading, there are several factors that you can't really control. While you can be able to make predictions based on fundamental analysis or a review of past price action, the element of unce...
Fundamental Analysis 101

Another useful tool in fundamental analysis is using the U.S. dollar index or USDX for short. This keeps track of the dollar's performance against a basket of currencies. Included in this basket of cu...
Technical Analysis 101

As you've learned in the previous sections, technical indicators and price action tend to move in tandem. For instance, when stochastic starts heading lower from the overbought zone, the corresponding...