You can see that there is a big difference between risking 2% of your account compared to risking 10% of your account on a single trade!

If you happened to go through a losing streak and lost only 19 trades in a row, you would’ve went from starting with $20,000 to having only $3,002 left if you risked 10% on each trade.

You would’ve lost over 85% of your account!
If you risked only 2% you would’ve still had $13,903 which is only a 30% loss of your total account.

Great info. May God bless u op

abbeyforex

Thanks for this info.

Please how do I determine how much of my account I risk per trade?

Great

Of course, the last thing we want to do is to lose 19 trades in a row, but even if you only lost 5 trades in a row, look at the difference between risking 2% and 10%. If you risked 2% you would still have $18,447. If you risked 10% you would only have $13,122. That’s less than what you would’ve had even if you lost all 19 trades and risked only 2% of your account!

The point of this illustration is that you want to setup your risk management rules so that when you do have a drawdown period, you will still have enough capital to stay in the game.

Can you imagine if you lost 85% of your account?!!

You would have to make 566% on what you are left with in order to get back to break even! Trust us, you do NOT want to be in that position.
Here is a chart that will illustrate what percentage you would have to make to breakeven if you were to lose a certain percentage of your account.

You can see that the more you lose, the harder it is to make it back to your original account size. This is all the more reason that you should do everything you can to PROTECT your account.

By now, we hope you have gotten it drilled in your head that you should only risk a small percentage of your account per trade so that you can survive your losing streaks and also to avoid a large drawdown in your account.

Remember, you want to be the casino… NOT the gambler!

OK SIR

abbeyforex:
You can see that the more you lose, the harder it is to make it back to your original account size. This is all the more reason that you should do everythiyng you can to PROTECT your account.
By now, we hope you have gotten it drilled in your head that you should only risk a small percentage of your account per trade so that you can survive your losing streaks and also to avoid a large drawdown in your account.
Remember, you want to be the casino… NOT the gambler!

Yes sir

Reward-to-Risk Ratio
Another way you can increase your chances of profitability is to trade when you have the potential to make 3 times more than you are risking. If you give yourself a 3:1 reward-to-risk ratio, you have a significantly greater chance of ending up profitable in the long run.
Take a look at this chart as an example:

In this example, you can see that even if you only won 50% of your trades, you would still make a profit of $10,000. Just remember that whenever you trade with a good risk to reward ratio, your chances of being profitable are much greater even if you have a lower win percentage. BUT…

And this is a big one… setting large reward-to-risk ratio comes at a price. On the very surface, the concept of putting a high reward-to-risk ratio sounds good, but think about how it applies in actual trade scenarios.

Let’s say you are a scalper and you only wish to risk 3 pips. Using a 3:1 reward to risk ratio, this means you need to get 9 pips. Right off the bat, the odds are against you because you have to pay the spread.

If your broker offered a 2 pip spread on EUR/USD, you’ll have to gain 11 pips instead, forcing you to take a difficult 4:1 reward to risk ratio. Considering the exchange rate of EUR/USD could move 3 pips up and down within a few seconds, you would be stopped out faster than you can say “Uncle!”

If you were to reduce your position size, then you could widen your stop to maintain your desired reward/risk ratio. Now, if you increased the pips you wanted to risk to 50, you would need to gain 153 pips. By doing this, you are able to bring your reward-to-risk ratio somewhere nearer to your desired 3:1. Not so bad anymore, right? In the real world, reward-to-risk ratios aren’t set in stone. They must be adjusted depending on the time frame, trading environment, and your entry/exit points. A position trade could have a reward-to-risk ratio as high as 10:1 while a scalper could go for as little as 0.7:1.

abbeyforex:
In this example, you can see that even if you only won 50% of your trades, you would still make a profit of $10,000. Just remember that whenever you trade with a good risk to reward ratio, your chances of being profitable are much greater even if you have a lower win percentage. BUT…

And this is a big one… setting large reward-to-risk ratio comes at a price. On the very surface, the concept of putting a high reward-to-risk ratio sounds good, but think about how it applies in actual trade scenarios.

Let’s say you are a scalper and you only wish to risk 3 pips. Using a 3:1 reward to risk ratio, this means you need to get 9 pips. Right off the bat, the odds are against you because you have to pay the spread.


If your broker offered a 2 pip spread on EUR/USD, you’ll have to gain 11 pips instead, forcing you to take a difficult 4:1 reward to risk ratio. Considering the exchange rate of EUR/USD could move 3 pips up and down within a few seconds, you would be stopped out faster than you can say “Uncle!”

If you were to reduce your position size, then you could widen your stop to maintain your desired reward/risk ratio. Now, if you increased the pips you wanted to risk to 50, you would need to gain 153 pips. By doing this, you are able to bring your reward-to-risk ratio somewhere nearer to your desired 3:1. Not so bad anymore, right? In the real world, reward-to-risk ratios aren’t set in stone. They must be adjusted depending on the time frame, trading environment, and your entry/exit points. A position trade could have a reward-to-risk ratio as high as 10:1 while a scalper could go for as little as 0.7:1.

Sir with this risk to reward ratio is it possible for a scalper to build his or account choosing this method

morgan2p:



Sir with this risk to reward ratio is it possible for a scalper to build his or account choosing this method

Its may be possible and may not be possible, it depends on what the market is saying at that particular period but remember scalpers only come into the market ,take few pips and get out again. They don't stay long in the market and with that,scalpers don't usually follow the concept instead they just take the pips as they come.

morgan2p:



Sir with this risk to reward ratio is it possible for a scalper to build his or account choosing this method

why be a forex scalper when you can trade binary options, easier and safer. you can win even with a pippett move. hehe

Yes sir... Concerning being an investor. How safe is the investors capital? Please elaborate

Thank you for taking your time to elaborate this forex of a thing. I guess the lecture has ended but I want ask if we are still going to do practicals with demo account as advised in previous lectures

legendsergio:
Yes sir... Concerning being an investor. How safe is the investors capital? Please elaborate

Safety of Investor's Capital is the utmost here. The broker controls everything that happens between the Investor and the PAMM manager. The PAMM manager opens account with the broker, apply to become a PAMM manager,then the broker asks the manager to deposit his personal money and must trade the money for minimum of 3 months alone before he can be approved.

After the probation period, if the manager is able to meet other criteria he gets approved. Now, the broker controls everything that happens in between the manager and the investor- fund deposit,withdrawal and so on. The manager and the investors don't have the contact of eachother. Infact your manager can be your room mate and you wouldn't know.

You only know your manager by USERNAME and he doesn't have any means of manipulation, everything is done through the broker. They stand as the link (intermediary) between the 2 of you and act based on every instruction you give them.

Also note that there are criteria to choosing a PAMM manager,that's why I took it as the last topic because I believe it is necessary for you to be able to interpret previous performance of PAMM managers before choosing one.

Though they are rated based on their performance on the brokers website, but each manager you choose should also meet investor's criteria ,hence the need to know little about the Forex market.

morgan2p:
Thank you for taking your time to elaborate this forex of a thing. I guess the lecture has ended but I want ask if we are still going to do practicals with demo account as advised in previous lectures

We still have one more topic to take which is " Criteria for selecting a good broker" . I will drop that soon. But in the meantime, a Closed group has been created on Facebook and only those that meet the criteria to join will be added.

It is a FB group because I can see whatsapp has its own flaws, new entrants don't seem to see or get what has been discussed in the past unlike facebook.

Only those that meet the criteria will be added to the group because its strictly for Fx people. Please don't drop any email or contact here. If you wish to know the criteria for being added to the group, do the following:
1. Add me up on Facebook, my Id is AbbeyForex.
2. Send a message to me requesting to be added.
3. Drop your email id to my mailbox (masbuzarcade (at) gmail (dot) com) to receive some important messages from me as they are deem necessary.
4. Be ready and willing to take action, its good to make money in dollars in this season of high exchange rate. Imagine making minimum of $30 per day from the Forex Market. That's extra $600 per month because we have averagely 20 trading days in a month.

Good Morning all,

I am sorry I am yet to post the last topic for this thread, I have been somehow busy with a certain Forex project cum the effort of taking the advantage of the referendum (BREXIT) that came up last week Thursday. Opportunities like that seldom happen, the last we herd was the Swiss Bank stuff of last year.

I will surely post the last topic soon but before then , to those that have contacted me to add them to the Plan B Fx group you will discover that you were instead added to my 2nd group (Green Pips Always). The reason is that I have a certain fx pot of soup on fire and the Plan B group will be used to distribute the soup to those that will be interested.

Let me sound it clearly that its NOT going to be FREE but its gonna worth the fee. I decided to cook this soup for those that have gone through this class and have decided to take FOREX as a career option.

I will take them by the hand and we will walk through the road together to 'making over $1000 out of the Forex market in 3 months without any capital'.

Stay Tuned.

[size=14pt]How to Choose a Forex Broker[/size]

With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr!

In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to.

With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin...

Step 1: Do your research

Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:

Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.

Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.

Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.

Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight.

Does this broker offer premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

Step 2: Compare brokers

Step 3: Open demo accounts and ask questions.

Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.

Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.

In closing:
I would like to extend my personal thanks to each and everyone one of you who made it all the way through this Forex Course. I hope that you now have a solid understanding of the Forex market and Forex trading. Whatever path you decide to take in your Forex trading career, I wish you all the best, and if you remember nothing else from my training, remember that ‘simple is better’ when it comes to trading.

I have 2 groups I administer on Facebook, Green Pip Always (Free for all) and Plan B (with Terms and Condition).

If you must take full advantage of my Plan B group on Facebook,you must consider opening your trading account via my IB link:
http://www.forextime.com/?partner_id=4900158 The iblink is also on my signature in case it is truncated here.

If you would like to continue learning about the power and simplicity of Forex Trading, then you should consider joining my trading hub. My Students get lifetime access to all of my Forex Courses, tutorials, daily trade setups newsletter, live trade setups discussion forum, traders support line & free ongoing course updates.

Thanks and God Bless you all ! Cheers

Thanks boss for your comprehensive enlightenment.

Hi all,
I really wanted to get this to you
as quickly as I could…it’s been intense around here
because the interest and signup rates have been
through the roof! It's even bigger than anyone thought!

I knew it would be big and I should have known
there would be an explosion of interest…after all,
A LIFESTYLE of TopUp,Bills Payment and other stuffa is HUGE
and is something people already love to do without persuasion!

Huge amounts have already been paid out in commissions
and I know you want to get in on the action so you can
claim a nice chunk of the next payout. So I’ll be quick (sorry
that I was not able to get you going before the last payout)

All you need to do is click here and activate:


https://www.youtube.com/watch?v=zgGPPE9aKDs

The only real option for people who want to make this into
a full time income quickly is the “Premium Package” option.

In fact every single one of our top earners are on Premium Package
and every single one of our fastest growing earners are also
Premium Package Ambassadors.

Here’s the thing ; you gotta do this quickly because
the earnings are growing and teams are being formed now easier
than they will ever be formed in the future.

So get the registration done and then watch for my next message so
I can get you jumpstarted and get you included on the next
round of huge payouts.

Looking forward to working with you!

[size=16pt]Its all about PEACEFUL WEALTH[/size]

Recently EUR Spiked higher as I forecasted and is likely to rise even higher. I expect a breakout above the resistance line 1.0949, and then a retracement to the just broken line to re-buy EUR towards 1.1144. On the 4 hour chart, bulls seems to have full control over the market and shorting EUR may not be recommended. My advice, either remain long or wait for a breakout above 1.0949 and then a retracement to long EUR towards 1.1144. Technical levels:
Resistance levels
R1: 1.1045
R2: 1.1048
R3: 1.1096

Pivot Point
1.0997

Support Levels
S1: 1.0943
S2: 1.0946
S3: 1.0994

Trade Signal
Long EUR towards 1.1144

Don't miss out on this highly profitable trading strategy room's invitation

I've mentioned with you about this room
some few days ago:

This is everything
a forex trader and anyone can dream about…

Using this system and taking advantage of the free group
you can easily achieve $50, $100, $200 and even more per day.

This has raving comments from many of my followers spread
all over the world.

They've reported some nice results in just a few days.

Really,
with the analysis in this FREE GROUP, you can get started making profit
real fast.

* Trading time is just 30 minutes or less a day
* Lets you get started with as little as $100
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Join us here : (PM me to get the link to the whatsapp group)

abbeyforex:
Don't miss out on this highly profitable trading strategy room's invitation

I've mentioned with you about this room
some few days ago:

This is everything
a forex trader and anyone can dream about…

Using this system and taking advantage of the free group
you can easily achieve $50, $100, $200 and even more per day.

This has raving comments from many of my followers spread
all over the world.

They've reported some nice results in just a few days.

Really,
with the analysis in this FREE GROUP, you can get started making profit
real fast.

* Trading time is just 30 minutes or less a day
* Lets you get started with as little as $100
* Requires no experience

Join us here : (PM me to get the link to the whatsapp group)

Hey!

Don't get it twisted. Don't get it wrong.

I just got a reply to the message I earlier sent about
"Can I Send You a Powerful System that works?"

And one of my followers just replied and below is his response in
his own words

"To you $100 is little.Why is it that you this people are not passionate,
where do you expect me to get $100.Can't you help without
collecting money".

No time for much and vain words here,below is my reply :

"I am not collecting a dime. That's the minimum you can fund your
account with and make reasonable daily profit. Its your money,
its not mine. Its your capital."

Honestly,I am not charging a dime for this service,I made it known to
you that its a FREE GROUP where I will be putting us through how to
make money from the FX and BO market.

You have nothing to do than to make extra money by doing no other
thing that to "COPY and TRADE".

Join us here: (PM me to get the link to the whatsapp group)

To your success !

Read more below

Do you trade binaryoption?

Chidonsky:
Do you trade binaryoption?

yes

buy XAUUSD @ 1249 sl 1240 tp 1270
For the intra day traders

The breakout on GU recently is a sign that bears are in complete dominance and that the price could drop further towards 1.2768. On the 4 Hour chart , I expect a minor pullback to the upperside then a decline towards 1.2768.

My advice, consider short positions towards 1.2768

Crude Oil traded a tad higher against the USD from yesterday’s close.The pair is expected to find support at 47.52, and a fall through could take it to the next support level of 46.21.

abbeyforex:


yes

please drop something for binary users