How Much Should I Risk Trading Forex? (based on the article)
How Much Money Should I Put in my Trading Account?
You must be honest with yourself, and consider how much cash you have which is available for building wealth. You should not include assets such as a house or car in that calculation, or pensions: the question is how much free cash can you get your hands on, without debt, and use to try to increase your wealth? Once you have this number, you should be prepared to place no more than 10% or maybe 15% of it into something risky, like trading Forex.
How Much Money Should I Risk Per Trade?
This is an easy question to answer, if you know the average or median amount of profit you can reasonably expect to make on each trade, and you are concerned only with maximizing your total long-term profit. A fixed fractional system risks the same percentage of your account value on each trade, as we showed in the earlier example of Traders A and B who were using 0.2% and 2%. Fixed fractional money management has two big advantages over other strategies. Firstly, you risk less during losing streaks, and more during winning streaks, when the effect of compounding really helps build up the account. Secondly, it is theoretically impossible to lose your entire account, as you are always risking X% of what is left, and never all of it.
Money Management is Part of the “Holy Grail”
Forget about the result of the trade you take today, and worry instead about the overall results of the next 200, 500, or 1000 trades you take instead. If you can make a profit of only 20% of your risk on average per trade, which is feasible using a trend-following volatility breakout strategy, it is quite possible to turn a few hundred into a million within ten years.
And there are some useful links related to the post above -
Intra-Day Fundamentals - EUR/USD and GBP/USD: U.S. Gross Domestic Product
2017-09-28 13:30 GMT | [USD - Final GDP]
if actual > forecast (or previous one) = good for currency (for USD in our case)
[USD - Final GDP] = Annualized change in the inflation-adjusted value of all goods and services produced by the economy.
From official report :
EUR/USD M15: range price movement by U.S. Final GDP news events
GBP/USD M5: range price movement by U.S. Final GDP news events
Chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:
All about BrainTrading system for MT5:
NZD/USD Intra-Day Fundamentals: New Zealand Building Permits and range price movement
2017-09-28 22:45 GMT | [NZD - Building Consents]
if actual > forecast (or previous one) = good for currency (for NZD in our case)
[NZD - Building Consents] = Change in the number of new building approvals issued.
NZD/USD M5: range price movement by New Zealand Building Permits news event
Chart was made on MT4 using 5 day Breakout - indicator and MaksiGen_Range_Move indicator from CodeBase (free to download).
3 Stocks Like Apple: Tesla, Nvidia, And Alibaba (based on the article)
Apple share price on the weekly chart is above Ichimoku cloud in the bullish area of the chart for the ranging within the following support/resistance levels:
Trend Strength and Absolute Strength indicators are evaluating the future possible trend as a correction, but ascendsing triangle pattern was formed by the price to be crossed to above for the bullish continuation in the future. So, the most likely scenario for the weekly price is the following: ranging bullish.
The chart was made on W1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:
USD/CAD Intra-Day Fundamentals: Canada's GDP and range price movement
2017-09-29 13:30 GMT | [CAD - GDP]
if actual > forecast (or previous one) = good for currency (for CAD in our case)
[CAD - GDP] = Change in the inflation-adjusted value of all goods and services produced by the economy.
USD/CAD M5: range price movement by Canada's GDP news event
Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:
Same system for MT4:
EURUSD Weekly - daily ranging near bearish ranging reversal (based on the article)
The price on the daily chart is located near and above Senkou Span line this is the virtual border between the primary bearish and the primary bullish trend. If the price breaks 1.1730/1.1661 resistance levels so the daily bearish reversal will be started, otherwise - ranging within the levels.
The chart was made on D1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:
S&P 500 - bullish breakout (based on the article)
Daily price is far above Ichimoku cloud in the bullish area of the chart: the price is breaking ascending triangle pattern for the daily breakout with 2,511 resistance level for the bullish trend to be continuing.
Dollar Index - ranging bearish; 90.98/94.05 are the keys (based on the article)
Weekly price is located very far below from Ichimoku cloud in the primary bearish area of the chart: the price is on ranging within 90.98 bearish continuation support level and 94.05 resistance level for the secondary rally to be started.
McDonald's - ranging bullish; 161.71 is the key (based on the article)
Weekly price is far above Ichimoku cloud in the bullish area of the chart: the price is ranging within narrow s/r levels for the bullish trend to be continuing or to the secondary correction to be started.Ascending triangle pattern was formed by the price to be crossed to above for the bullish trend continuation.