Rush for profits

In order to survive at the forex market you have to limit your losses maximally and make more profit than losses. It is easy, isn't? But why the majority of traders can not comprehend this trader's law? Because of psychology?

Now let's return to the topic of this article, set a goal to take pure 20 pips every day while trading. I know, it sounds really boring. Not so attractive as orders on 100 pips. But you trade to make money and not for fun, don't you? Otherwise you will go broke very soon. Let's fix in our mind that this is a serious business which gives you profit. The newbies should try mini-accounts where one lot has a size 10000 USD.

First I want to discuss with you margin level and how to determine trading leverage. Very often Brokers promote leverage 400:1. If you think that trading with the leverage 400:1 is a good idea you are just a fool. The required guaranteed deposit for position opening will be extremely low. It is not so bad, isn't it? I think that it is good too but it is not always so. Remember that leverage increases not only your profit but losses as well. If you open positions with leverage more than 5:1 it is a way to ruin. In fact you may count your leverage if you correlate the size of opened position with the balance of your account. For example, if the volume of opened position equals 250000 USD and you have 10000 USD on the balance your leverage is 25:1. The leverage 25:1 is a dangerous level, if you do not want to finish your trading career in several months. As soon as you find your way and start to win you may return to the problem of leverage. But before it happens you should choose more conservative way of trading.

We recommend to trade with leverage 4:1 for one deal as maximum. But let's sum all the deals. If you have 6 opened deals with leverage 4:1 your leverage will be 24:1. One more thing to remember – Friday is not the best trading day for a newbie. Believe me, it is really so. Make a rule to fix 20 pips of profit every day. So, let's count our profit… Trading 4 days in a week and fixing 20 pips profit a day with the leverage 4:1 you profit will be 3.2% in a week. Are you lathing at 3.2 %? You lost so many time…Even if you trade the whole year with the same parameters you will have 166,4% in a year. It sounds better, doesn't it?

For example, you have an account with 10000 USD. If you follow mentioned above scheme the deal volume will be 40000 USD. If you do 20 pips a day you make 80 pips a week, you multiple 80 pips by 4 lots and have 320 pips a week (profit 320 USD). If you want to leave on profit made in trading you should count how much money you should earn in a week so that you may live well, take into consideration that you can not make 20 pips every day. Following all my advices you may improve your trading skills and trading will become you main work.