Risk is something that is present in pretty much everything that we do when it comes to trading forex, each trade that we put on is a risk, each time we increase our lot sizes or trade a new currency pair, it is a risk, risks are everywhere. While risks are present, and there are ways to monitor and reduce the risks, there is one thing that we are not able to change, and that is our own tolerance or appetite for risks.
Risk tolerance is basically your ability to deal with risks, it is an emotional state where you are either tolerant of the risk, able to deal with it with a clear mind and an objective view, intolerance is where you are not able to handle it quite as well, it will cause you to stress, it will cause you anxiety and it can even cause you to place trades that you otherwise would not have.
Your risk appetite is about how much risk you actually want, for many wanting risks would seem like a strange thing to want, but for others, it is something that they get their buzz and thrill out of it. In fact, this lust for risk can cause people to trade too much, to trade too large and to trade at a level that puts their accounts at risk. For others with very little risk appetite, they may not want to trade at all once they have experienced the risks that are involved.
With that being said, how do you know whether your own appetite for risk is appropriate and reasonable? Firstly, if you are getting severe anxiety or stress from trading, you don’t really want to press that trade button due to worry that you may lose something then your risk tolerance and appetite is on the low side, if it is really bad, then this can be a sign that trading is simply not for you, there will be risks and to trade is to accept those risks. For some it is possible to work through it and to develop a better tolerance to the trades, for others it is simply not possible and so trading will simply be a stressful situation for you.
On the other end of the spectrum are those that like a little too much risk, they want to place huge trades, they want to be trading at all times regardless of their strategy or how the markets are. The more volatile the markets the more they will want to trade as the risk and rewards are both far higher. This can be a dangerous situation to be in as very little risk management will be put in place, these sorts of thrill-seekers will either become rich very quickly or lose everything in a matter of days, sometimes both, getting some wins, getting the confidence and then losing it due to risking too much.
Those are the two extremes when it comes to risk tolerance and appetite, what we need to remember is that there are in fact things that we can do to help maintain a safer trading environment. If of course, you are right in the middle of the tolerance and appetite levels, then you are in a great place when it comes to trading as you are able to tolerate the risks and are also not afraid to take a few.
So let’s assume that you are either high or low on the appetite level, what can we do to help? The first thing is to create a trading plan, within this plan you will have set out some rules, these rules are there for one important thing. They are there to ensure that you are in line with your plan and that your risks are limited. These rules will help someone with a low appetite for risk to understand that they are still in charge and that trading along these rules gives them the essence of safety, a way of controlling the risks that they are being put under.
For those that are on the high end, it will enable them to reign in the risks that they are taking. Trading to the rules will basically ensure that you are not putting on any additional trades that you shouldn’t be and that you are not placing trades that are simply too large for your account. Of course, it is up to the person whether they continue to follow it, but some discipline will enable you to manage your risks a little better.
Your risk management plan must also be in place. This plan sets out all of the risks that you will be putting yourself under, it will give you a good understanding of what risks there are and also how you will be reducing them. Ensure that you understand where your stop losses will be, what your risk to reward ratio is along other aspects of your trading. Much like mentioned above will enable you to maintain your risks and to help you stay at the right level. When we trade to the plan, we are making good trades, regardless of win or a loss, and with taking good trades we will ultimately profit at the end of the day. The issue of course is sticking to that plan, which is often easier said than done.
So what level of risk appetite is reasonable? There isn’t really one. There are some people who are in the middle which is perfect for them, but for many others, you are in a situation where you either like the risk or you hate it, but wherever you are on the line, you need to ensure that you have everything that you can in place in order to manage and reduce the risks that you are putting your account under. Stick to those plans and you will be in a great situation.
You should have a very clear idea of your typical commercial performance over the full range of market conditions as if you had been operating continuously for years. One of the best systems to do this is to have a trading simulator installed and/or a Forex strategy simulator software to simulate many years of exchange operations and ideally hundreds of operations. You can then have a good statistical basis on the likely range of returns that you can achieve in a month. Of course, proving this over a long period of live trading is a superior method for determining your trading expectations. By all means, watch 
You may be able to automate your trading, at least in part, by using a Forex robot, say for trading entries. You can then decide on commercial departures every few hours or even on a daily basis. This way you can keep your income or primary salary and that, added to what you can do about exchange operations will look a lot like what you would do if you devoted yourself to this activity every minute of your day.
So while there is not a strategy that will get you a 100% win rate, there are some things that you can do to help improve those odds or at least to improve the chances of you being a profitable trader. To start, you need to manage your money, the losses that you will take need to be managed and they need to be controlled. You need to have a set risk management plan in place that will detail the maximum loss of each trade as well as your 
The New Life of Trading – Alexander Elder
Quantitative Trading Systems- Howard Bandy
Technical Analysis Based on Statistics (Evidence-Based Technical Analysis) – David Aronson
Principles – Ray Dalio
We know that in the Republic of China the Communist Party rules and the Communist Party controls the big banks of the country. These big banks do what the party dictates, so in the end, they are obliged to offer loans to companies and sectors that the party wants to benefit from, and the same but on the contrary, they are forbidden to finance other companies or sectors.
China has aggressively stimulated its economy in 2019 Q1 and Q3. Again, it is something that has been repeated in the Q1 of 2020 as a result of the Coronavirus (injecting money and lowering interest rates). 
Next, think about whether you have the appropriate space to trade, if you are planning on doing it full time and to make a living out of it, then you can’t be trading from a laptop while sitting on your living room couch. Get yourself a dedicated space that you can use for trading. A room within our house which is there for nothing but trading, if you do not have the opportunity to do this, then hire out a one-man office somewhere and set that up as your trading room. The space needs to be free from distractions, it needs to only have in it the things that you require to help you trade, and nothing else. When you are in that room, you are there to trade, not to mess about, or watch TV. When you have finished trading for the day, leave that space and do not return to it, keep it completely separate from your family or social life. Also, make sure you have a decent internet connection wherever it is that you are trading, the last thing you want is to lose connection mid-trade.
Another thing that a lot of traders coming into the industry do not fully understand is the amount of time that it takes to learn and to actually begin trading. The initial periods can take a lot of your free time, you need to learn the basics, you need to create a trading strategy, you need a risk management plan for that strategy, and more. This can take a lot of time, more than most people expect as some come into it thinking they will set up an account and then trade, you can of course do that but it will ultimately result in loss.
When it comes to things like investing, you often hear the phrase “You need money to make money”, while to some extent that is true, if you want to make a lot, then you need a larger balance, but you certainly do not need a lot when you are first getting started. In fact, many brokers allow you to join from as little as $10, making it pretty accessible to most people in the world. Those that were once priced out of the markets can now very easily get involved. It will be hard to make much with such a small balance, for that you will need more, but it just shows that you do not need a lot in order to get started and to actually make anything.
Political changes (such as elections of major world countries) or economic ones (like breaking down of international trade agreements) will reflect on a currency. Sometimes the “how” is clear as day like with Britain leaving the EU. Ever since 2016, the very mention of Brexit made the Pound struggle. After the Brexit withdrawal agreement and ten months of transition, the new UK – EU partnership agreement was put into force on January 1
Trading goes hand in hand with taking chances. As a trader, you acquire a high-risk tolerance, but it has nothing to with being hazardous. Pro traders take calculated risks, the ones that are more likely to turn into profit. They are simultaneously aware of the inevitability of losses. There’s no profit without a loss, they are just two sides of the same coin. Having that in mind, they never succumb to being exceedingly exultant about 
The lock allows you to manage the floating loss that does not affect the balance or spoil the trading statistics. 
Institutional diversification: Here it is about working with multiple counterparts: Forex, Exchange and different brokers, trust management, etc. If we’re in a force majeure situation (we already discussed the case of the Swiss franc) a counterparty fails, it can withdraw at least the rest of the money from the second.
Consumer price index – It is calculated for a specific group of goods and services that are part of the consumption basket of the average resident of the country. The index analysis for the current year is carried out in comparison with the base (baseline). The IMF, EBRD, and the United Nations recommend the statistical basis for the calculation, but there is no single approach, each country has its own calculation peculiarities. The calculation methodology can be based on the price indices of Lowe, Paasche, and Laspeyres. If the index decreases, it means that consumer purchasing power (real demand) also decreases and may partially suggest a higher rate of inflation growth.
However, this change has not allowed us to detect “hidden changes” – those moments that Coates calls “the time between the dog and the wolf” – when people become very risky or very averse to the risk of the normal. Coates says statistical-based methods, which do not take into account biology or neuroscience, are not able to capture the behavioral changes in traders.
In the tests conducted by Kerstin Preuschoff, a researcher at the Laboratory of Computational Neuroscience at the Swiss Federal Institute of Technology in Lausanne, and Steven Quartz, professor of philosophy and researcher of neuroscience at Caltech, subjects participating in the study were asked to play cards while observing the brain areas activated during risk management using fMRI. The collected data suggest that the anterior insula section of the brain, considered the seat of feelings and emotional awareness, transmits this information in a fairly precise way – essentially in the form of mathematical signals.
It is very common to listen to traders who say they will stop trading after losing or winning a certain number of trades per day. Whether this makes sense or not depends to a large extent on what kind of trading they are conducting. If we are talking about reselling or short-term trading, then this is a psychological defense mechanism that will probably only limit the profitability of an effective trader. However, for the longer-term swing trader or traders, such a rule is probably useful, since if the first three or four patterns fail quickly, forming a winning pattern becomes increasingly unlikely. Moreover, if the loss-making operations take place in the same price area, it is likely not a fruitful area in the near future.
The objectives of having a certain benefit can be sensible as a good trading method must provide a certain number of winning trades over time. The most important thing is that the profit targets are neither too small nor too large. Something in the range of twice or triple the risk per operation (from the entry point to the stop loss) is usually a good option. However, it may also make more sense to keep up with the pace of the market and let the operations that are doing very well keep running, at least until they show signs of turning. A productive commitment could be to make a profit when targets are reached very quickly, as such moves in Forex are often spikes that fall apart easily, but otherwise, we can apply a trailing stop, if only once the price is close to the goal. It is also very reasonable for-profit objectives to be based on volatility, for example, if a stop loss is more or less a true middle range of any time period being used so that the profit-taking is two or three times the same amount respects the current pattern of market volatility and the instrument it trades.
Many people, especially those that have seen some of the Hollywood or bigger films about trading and forex will often think that the USA is the center, it is where the most trading happens. When in reality, only around 19% of trades and trade volume takes place in the US, instead, the center of the trading world is actually London, it is predicted that 43% of all forex trading transactions take place in the United Kingdom, and London, making it the main hub for Forex trading.
Risk management is the cornerstone of any strategy, it is the foundation that is there to basically protect your account. It is there to ensure that you do not lose more than you want to with each trade and ensures that you do not blow your account. When you have it in place it can help to take out a lot of the stress from your trading. Of course, the opposite is also true, if you do not have proper risk management in place then every single trade that you make will have the chance of blowing your account. If You are in that situation every trade then you will be under constant stress every time that you trade. This is why you need things like trading rules, dictating how and when you trade, stop losses to help protect your accounts, and a proper 
At times it will be impossible to prevent any stress from building up, so then we will need to try and deal with it. One of the best ways to do this is to simply take a break, breaks are a fantastic way for us to reduce our stress levels. Getting away from what is causing the stress is the first step, it will prevent any new thoughts or new stresses from being added to the equation. Secondly, being away and doing something else will help to take our minds off of things that are already causing us stress. This way we think about something rose, something else that gives us enjoyment or at least doesn’t add to the stress. Doing this regularly can help you to regulate the stress that you are under. Do this regularly, multiple times a day, it is even a good idea to do it even if you aren’t currently experiencing stress. Just ensure that you are not sitting in front of the computer for hours and hours without any breaks. Coming back with a clear and calm mind can really help you to improve your productivity and trading results.
Losses are a part of trading, a big part of them, every single person that has ever traded (apart from those that only do a single trade) will have experienced losses, all of the most successful traders in the world have experienced losses and a lot of them. In fact, they are so much a part of trading that we factor them into our trading through our trading strategies and risk management. Ever heard of the risk to reward ratio? This is where we decide how much we will risk with each trade and how much we want to win. Knowing this means that we know exactly how much we might lose with each trade and that each trade is actually a fantastic way for us to learn from what we have done and for us to improve. Look at why the trade lost and what we can do differently. 
The trade tab is where you will be spending most of your time and allows you to actually make your trades and orders, it is made up of a number of different sections which we have outlined below.
There is an additional tab for the account history which shows past trades and orders that have already been closed or canceled, there is a price alert tab for any alerts that you may have setup. The transaction tab looks at deposits and withdrawals. The final two tabs are regarding the journal and cBot log which details different actions that have been taken, either by you manually or automatically by a cBot.
The copy tab allows you to launch cTrader Copy, this is a system that allows you to view and then copy other traders, it is similar to the signals section within MT4 and MT5. You can look at the past performances, look at what sorts of risks that you are taking and if you like the look of it, you are able to copy their trades into your own account. If you feel that you have a great strategy, then you can actually apply to have your trades added to the system for people to copy, getting a cut of any commissions for each trade taken.
Forex trading is not hard, complicated yes, but not hard. We say this even with the knowledge that the majority of people that trade will lose money. People seem to put the term hard on everything these days, forex is not hard, it just takes time, and that’s for some people what makes things hard. Yet in reality, it is not hard at all, all you are technically doing is placing a trade, choosing whether it goes up or down and that is it, it is incredibly easy and quick to do. Yet people refer to it as being hard because of the amount of time and effort that you need to put in in order to be good at it and in order to know which way you should be placing your trade. Yet it is still not hard, it just takes time, time does not make things hard, hard shoulders mean that it takes a lot of effort in order to do the thing that you are trying to do, and that is playing the trade, which we have already discussed, is actually very simple.
Forex trading is not a scam, if it was there wouldn’t be over a trillion dollars being traded every single day. Forex is basically just a way of exchanging foreign currencies for each other. It has been happening for hundreds of years in one form or another and will happen for hundreds more. Businesses are run off of it and if it was a scam, the majority of businesses that we have today would have disappeared a long time ago.
Many years ago this would be completely true, you used to need millions of dollars before you could even consider trading on the global forex markets, this made it so that only the biggest businesses and institutions could take part in the markets. These days though, this is certainly not the situation that we are in. These days anyone can trade, all that it takes is a computer or mobile phone, an internet connection, and a balance of as little as $10. That is all that you need to trade which is ridiculous and incredibly accessible. There are no more excuses available for it not being easy to get into. You can go from no account to your first trade being placed in the matter of about 10 minutes with some brokers. There are millions of people trading from their bedroom at home and things will only continue to get easier.
The first thing comes down to your education, there is such a thing as too little information, but also too much information. There are three types of traders, those that learn the very basics and then jump in, those that try to learn everything before they touch their trading account, and those that learn as they go along. We would say that there is no right way to do it, but there are certainly wrong ways. Firstly, those that simply jump in with very little information, are setting themselves up to fail, you cannot trade with very little info, you won’t know how to manage your risks, or what certain events or patterns mean.
You need to learn about risk management, this is how you will protect your account from losses and from the markets moving against you because they certainly will move against you at one point and on a regular basis. Your risk management plan should contain things like your 
Set your goals and expectations, many people come into trading with the idea that they will make ridiculous amounts of money very quickly, of course, is not the case and is not realistic. You need to set your goals at an appropriate level, think about things like your current capital and account balance, the strategy you are using, and other risk management things that you have in place. You should combine all of these to make more realistic goals. If you see them too high, then you will be risking too much with each trade, not something that anyone would recommend, so set your expectations at the right level and it will keep you grounded and will help to keep you consistent with your trading and risks.
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You are naturally looking at the news: 
You no longer blindly follow others: 
You still understand that there is still a lot to learn: 
We spoke about leverage near the start of this article, it is important to get a good understanding of how it works and if you want to keep the risks on your account as low as possible, then you will also want to keep your leverage as low as possible. Leverage allows you to trade with more spending power than the capital in your account, this, in turn, increases the profit potential of the account, which is the main selling point of leverage. What they don’t tell you is how this leverage also increases the loss potential of your trades too, the more leverage that you use the higher the losses can be with each trade and a loss can take away a much larger sum of money than it would have with less leverage. So if you have the balance for it, go for a lower leverage in order to keep risks low.
Sometimes when we are in the driving seat, we don’t actually realise whether we are profitable or not, we are concentrating so much on our actual trading that we are no longer looking at or recording the results that we are taking. We could be months in, with hundreds of trades under our belt, but until someone comes along and looks at those results, we won’t realise that we aren’t actually making any money.
Many people find trading stressful, that is one of the many natural emotions and reactions that you will get to trading, the problem comes when people find it a little too stressful. Some find it so stressful that they simply need to stop or they just cannot think of anything else, or even function properly afterward. If stress is starting to take over whenever you are trading you most likely need help, but first, you need to look at how you are trading.
Trading can take a lot of time, it also can not take a lot at all, it all depends on you and the strategies that you are using. For many, at the start it can take a long time, there is a lot of learning to do even before you place your first trade, and this can be boring for many who simply want to skip it and start trading, but you need to take the tie to learn. The other thing is that certain strategies take a long time to trade with, there can be a lot of analysis, there can be a lot of trade preparation, and then once you place placed your trades, you need to sit there and monitor them, this is especially true for scalping, where you need to be at the computer during the times of your trading.
This is something that is far more common than you may think, yet a lot of people simply do not want to admit it. There will however be situations and times where you simply do not know what it is that you are meant to be doing or how to analyse certain information. Try and get involved in some 
Sometimes things can become very stale, if you feel your strategy has come to the end of its life then there are still things that you are able to do to try and revamp it. One of those things is to start again from the bottom up. Start with the foundations of your strategy, try and rebuild it based on the current market conditions, this way it will once again suit the conditions of the markets. This may seem a little extreme, starting over completely, but that is one of the ways that you can really tailor your strategy to the current market conditions and one of the ways that you can ensure that it will have the best opportunity to be successful in those market conditions.
Sometimes you do not need to make large changes, a simple change to one of the parameters or the rules that you use with the strategy could be enough, part of using a strategy is that you need to keep making small adjustments as you go. As the market conditions change, so does your strategy, but the changes do not need to be large. These regular small updates are all things that will ultimately add up to larger changes, so after a year or so of very small changes, the strategy could resemble something that has pretty much nothing in common with the initial strategy that was created. That is the beauty of the small changes, it will create large or completely revamped strategies without needing to spend a long time at once totally changing it up at the same time.
One thing that you also need to do in relation to our strategy, instead of thinking about changing your strategy, there may be something within you that you need to change yourself, or something that you currently do like a bad habit that you need to change. The strategy may actually be working fine, but there is something that you are doing that is causing the issues, or at least reducing the profitability of your trading. So look back at your journal, look back at the trades that you have made in order to ensure that you are following your strategy properly and to help find any bad habits that you may be partaking in, nip those in the bud and your trading will improve without having to make any changes to your trading strategy.
It can be very easy to fall into the trap of taking shortcuts, when we say shortcuts we are referring to the rules and the methods that you use to place trades, your trading plan will have some rules on it, these rules will dictate how and when you place your trades. These can be pretty small shortcuts, like not waiting for additional confirmation, or they can be pretty significant ones like trying to speed up the process by not placing a stop loss with a trade. While they may not seem big, those little things like not placing a stop loss could potentially end up causing some quite considerable losses which will, in turn, put your overall trading results back quite a bit. It is important that you try to avoid these shortcuts, some may work, but when they don’t they can have big effects. Ensure that you stick to your rules and that you do them fully, not doing just half and hoping things are ok, that extra minute that you save is not worth the additional risks involved.
A lot of people don’t seem to stick to their risk management plans, at least not entirely. Your plan will have your 
Something that we are all probably guilty of, we love to trade, but sometimes it is better not to and when you are tired, that can be one of those reasons. When we are tired we do not have the same concentration levels, we are far more easily distracted and we are far more likely to make mistakes. Yet we love trading so much or feel that we need to trade that sometimes it doesn’t matter how tired we are, we will still trade. This is where a lot of mistakes will be made, things missed out and potential losses gained. If you’re feeling tired, or that you cannot concentrate fully, then you should try and avoid trading as a whole, including analysing the markets and especially placing any trade.
Distractions are horrible things when it comes to trading, pretty much anything can be a distraction. When you set up your trading officer room, you should have ensured that a lot of the things that could cause you distractions were removed. Things like a TV, games consoles, things like hats, things that can take your attention away from your trading. Ensure that others know that you are trading and that you do not wish to be disturbed. Distractions can very easily cause you to miss things or to place trades incorrectly, so it is vital that you eliminate as many as you can.
Emotions are wonderful things, they can make us feel amazing but at the same time, they can make us feel pretty rotten. One thing that we want to avoid is trading while our emotions are pretty high. They can cause us to want to do things that go against our trading strategy, things like greed and overconfidence can make us trade large or more often, while things like anxiety and fear can make us not want to trade at all. When we have our emotions high or you can feel something building up then it is important that you take a break, step away, clear your mind and come back when those emotions have died down.
The first thing that any trader should do after placing their first trade is to write everything about it down on awesome paper in a trading journal if you have one. This will include things like the opening price and time, the closing price and time, how long the trade was open for, the profit or loss of the trade, what analysis you did beforehand, which of your trading rules you followed, and any other relevant information that you can think of. It sounds like a lot, but it will be worth it, this sort of information will then allow you to analyse the trade that you made (our next point) which in turn allows you to ensure that you are making even better trades in the future. This is only possible though if you remember to write things down. It does take a little extra time, time that is definitely worth it, so don’t skip this step just to save yourself a few extra minutes.
You can do this regardless of whether you did our previous point of writing things down, however, it is far easier to do if you have all the relevant information written in front of you. We now need to analyse the trade that we made in order to work out whether it would be classed as a good trade or a 
When we place our first trade, we will have a number of different emotions flowing through us which is completely natural in this situation. We will feel nervous beforehand, during the trade we may feel a lot of adrenaline, afterward, depending on the result we may feel a high or a low. It is important to remember these feelings, however, the reason why we are remembering them is not so that we can try and recreate them, it is to show us that we need to try and get them out of our trading. The nerves that you get at the start should go with time, but if you allow them to remain it can become increasingly hard to actually place trades, the same with the highs and lows, they can become addicting or even bring on other emotions that can affect our trading like greed or overconfidence. So remember those feelings, if you then, later on, feel them becoming quite strong, that is a good time to take a break and clear your mind.
If we did our analysis properly, we will most likely have a few things to think about, did you follow your strategy? Did you place a good trade or a bad trade? These are things to think about. If things were not entirely perfect which they probably weren’t, then we can start to think about things that we need to change. When starting out there will most likely be a lot of different things that we need to change on our first, second, third, and more trades. They may be very few things, but each change that we make is an improvement that will ultimately improve our overall trading in the long run. Remember, these changes do not need to be big, any changes are also helpful, no matter how small they are.
So we placed our first trade, after looking at that trade, analysing it, working out what we need to change, we can then think about placing our second trade. We need to take into account anything that we previously looked at, so if we needed to make a change, this is where we can implement it, of course, if it is a huge change, then it will be good to test it on a demo account, but for very small changes it will be ok in our live account. It should be slightly easier and quicker to place this second trade as we have done one before and the majority will be exactly the same. Place the trade and then do exactly the same again, write down what you do, the same information as before, so you can then analyse the second trade to ensure you are still in line and that any changes that were made are working well. Then do the same for the third, fourth, and any other subsequent trades that you make.
Brokers are always very interested in being able to develop their business more and thus be able to attract new customers. They make profits by receiving commissions for the transactions made by their clients. They themselves do not always manage to attract a sufficient number of new customers. That’s why 
The Stop Loss can be dynamic, as a way to ensure profits in a transaction that progresses in a profitable way. However, the Stop Loss should be moved only in the direction of reducing losses or blocking profits. This way, a trade with good performance will end up giving benefits. This is of course an excellent way to leave an operation ends with a “natural death,” rather than aiming for profit goals that can be very difficult to predict.
There is a possible compromise. You may want to use dynamic pickups set in locations relatively far from the current price, which could be reached by, for example, a sudden news spike. This could get you some nice benefit at the peak, and allow you to re-enter at a better price when the turbulence passes. This is the most suitable use of Hard Take Profit commands within “non-scalping” negotiating styles.
