Forex: working steadily. Position trader in the foreign exchange market

Everyone coming to the market Forex, dreams of a stable earnings. But how to combine the desired stability in the harsh laws and foreign exchange market, traders who do not forgive even minor mistakes? 


First of all, to determine what proportion of their deposit to be used for currency trading, you can afford to lose. Of course, this value is very individual for each trader and depends on its financial capacity and psychological warehouse. But the experience of previous generations of traders said that the unreasonable risk on open positions amounts in excess of 2% of the current deposit. 


In early trading activities and risks at all should be reduced to 1%. That is, if you've developed trading system (TS) signal on the entrance to the market and you open a position, your maximum possible losses by control orders to limit losses under the TC, should not exceed 1-2% of the amount in the account Trader .

Why do we immediately went on the possible losses? First, because nobody, not even the most experienced trader can not avoid losses on individual positions. Secondly, the main task of the trader in the first phase of work should be defined as survival in the foreign exchange market, the ability to hold out as long as possible in this risky business. 

Choosing A Forex Strategy ↓

Technical analysis and fundamental analysis are the two basic areas of strategy in the FOREX market which is the exact same as in the equity markets. However, technical analysis is by far the most common strategy that is used by individual FOREX traders. Here is a brief overview of both forms of analysis and how they directly apply to forex trading:

Fundamental Analysis

If you think it's hard enough to value one company, you should try valuing a whole country instead. Fundamental analysis in the forex market is often an extremely difficult one, and it's usually used only as a means to predict long-term trends. However it is important to mention that some traders do trade short term strictly on news releases. There are a lot of different fundamental indicators of the currency values released at many different times. Here are a few of them to get you started: