Showing posts with label forex 10 pips a day. Show all posts
Showing posts with label forex 10 pips a day. Show all posts
How long does it take to generate 10 pips in forex?
Posted by Ryanita
on
Saturday, June 21, 2014
, under
forex 10 pips a day
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Fierra E
I am new to trading and I want to generate a least ten pips a day, is that possible or does it take longer. What time should i expect the trade to execute, so that i can put in more trades?
Answer
If you trade EURUSD, it can be as soon as few seconds. Trade on US market where there's rapid movement.
If you trade EURUSD, it can be as soon as few seconds. Trade on US market where there's rapid movement.
About www.forex.com?
Peru-Miski
Just one question, I read this on their web page:
If you want to purchase $100,000 of USD/JPY at 100:1 leverage, the money required is 1%, or $1000. The other $99,000 is collateralized with your remaining account balance. You pay no interest.
What does that mean? That in that case I would owe them $99000?
Thank You.
Only people who have actually traded there. Thank You
Answer
If you are talking about the Forex spot market it works like this (Forex futures is a different animal).
Let's say that you open an account for $10,000. You could take 10% of that (this is called your margin) or $1000 and enter a position that allows you to control $100,000 of the USD/JPY currency pair (this is called 1 "lot") using the leverage that you mentioned of 100-1.
(Now let me point out right away that the USD/JPY is an extremely risky and volatile currency pair and I would personally consider 10% to be too high of a margin.)
The only money that you have at risk in your account is the $10,000 in your account. If the price of the currency were to move far enough against you the broker would initiate a margin call and close out your account and you would lose your entire $10,000.
Here is how the profit and loss works. The current price of the USD/JPY that you bought is 112.82. If the price increases to 112.83 it is said to have moved 1 "pip" and your account balance would increase by $8.91. If the price had moved to 112.81 you would have lost 1 "pip" and your account balance decreases by $8.91.
As I mentioned the USD/JPY is very volatile. It would not be unusual for it to move by 20 or 30 pips, or more, in a matter of minutes. (And don't forget...it's moving while you are sleeping.) I don't think I could sleep very well with a position like this.
Now the other interesting feature with the USD/JPY is that for one "lot" you would receive a daily interest payment of $11.91. This occurs regardless of the price of the currency pair and you receive it 7 days a week. (triple interest on Wednesday to make up for the weekend).
In closing the Forex market is very risky. It is very important to study the market and know exactly what you are doing before getting involved. And never, never, never trade with money that you cannot afford to lose.
I suggest spending some time at www.babypips.com for the absolute best training on the Forex market.
Good luck and be careful.
Paul
If you are talking about the Forex spot market it works like this (Forex futures is a different animal).
Let's say that you open an account for $10,000. You could take 10% of that (this is called your margin) or $1000 and enter a position that allows you to control $100,000 of the USD/JPY currency pair (this is called 1 "lot") using the leverage that you mentioned of 100-1.
(Now let me point out right away that the USD/JPY is an extremely risky and volatile currency pair and I would personally consider 10% to be too high of a margin.)
The only money that you have at risk in your account is the $10,000 in your account. If the price of the currency were to move far enough against you the broker would initiate a margin call and close out your account and you would lose your entire $10,000.
Here is how the profit and loss works. The current price of the USD/JPY that you bought is 112.82. If the price increases to 112.83 it is said to have moved 1 "pip" and your account balance would increase by $8.91. If the price had moved to 112.81 you would have lost 1 "pip" and your account balance decreases by $8.91.
As I mentioned the USD/JPY is very volatile. It would not be unusual for it to move by 20 or 30 pips, or more, in a matter of minutes. (And don't forget...it's moving while you are sleeping.) I don't think I could sleep very well with a position like this.
Now the other interesting feature with the USD/JPY is that for one "lot" you would receive a daily interest payment of $11.91. This occurs regardless of the price of the currency pair and you receive it 7 days a week. (triple interest on Wednesday to make up for the weekend).
In closing the Forex market is very risky. It is very important to study the market and know exactly what you are doing before getting involved. And never, never, never trade with money that you cannot afford to lose.
I suggest spending some time at www.babypips.com for the absolute best training on the Forex market.
Good luck and be careful.
Paul
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How much leverage are you comfortable trading in FOREX?
Posted by Ryanita
on
Monday, December 16, 2013
, under
forex 10 pips a day
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comments (0)
nauticalps
Does anyone have any suggestions on a leverage limit?
Many FOREX brokers allow up to 200:1 leverage. My trading strategy is to take just very small gains (3 or 4 pips at a time) and set the stop losses way out there just to avoid a total wipeout. I never trade on Fridays either and of course close out before the market closes.
Because of the giant stop losses, I am only comfortable with around 20:1 leverage or maybe 30:1.
In other words, with a $500 margin account balance, I would only consider buying 0.1 lots of EURUSD (10,000) at a time; 0.2 lots with $700; 0.3 lots with $1100 and so on...
Does anyone out there use the same strategy as me and feel comfortable with higher leverage like 40:1, 50:1 or even higher?
Answer
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
What are trading stocks, forex, and broker?
Dynasty
Can anyone who knows:
What is trading stocks and how to make money with it?
What is forex and is that related to trading stocks?
What is broker and the same questions above?
Can we absolutely make money with those?
Answer
Hi Dynasty,
Stock trading meaning if you think that for example Facebook share price will rise from current price say USD$20 and let say the next five days, the price will go up to USD$40, depending on how many shared you have purchased, say 50 shares and if you decided to liquidate it, you will make $20x50=$1000 and of course if let say the price will to drop to USD$10, then you will lose $10x50=$500.
Forex trading is trading on currency pair such as the most popular pair EURUSD and if tomorrow Germany will to announce that they will get out from EURO Zone, and if you know the information beforehand, you can short 1 standard lot, meaning 1 pip=USD$10 on EURUSD and take profit at 500 pips, you will make a profit of 500pipsx$10=$5000 within hours.
Of course both investment tools can make money only if you know how to take care of your money management to reduce your risk to the lowest. Actually in my personal forex blog, I did write something about money management on how to limit your risk if you are wrong of your trade.
Broker is platform that you need it to buy and sell your stocks or currency pairs (Forex) and they will take commission from every trade that you have transacted. If you want to try it out, you can apply for a Forex demo account to have a feel on what is Forex trading all about and try to read up Forex trading from babypips.com or my blog. In any case, it is all Free so take full advantage of it.
Absolutely can make money provided you can control your own psychology and have a sound money management to control your risk per trade.
Best Regards
Ah Kiat
Hi Dynasty,
Stock trading meaning if you think that for example Facebook share price will rise from current price say USD$20 and let say the next five days, the price will go up to USD$40, depending on how many shared you have purchased, say 50 shares and if you decided to liquidate it, you will make $20x50=$1000 and of course if let say the price will to drop to USD$10, then you will lose $10x50=$500.
Forex trading is trading on currency pair such as the most popular pair EURUSD and if tomorrow Germany will to announce that they will get out from EURO Zone, and if you know the information beforehand, you can short 1 standard lot, meaning 1 pip=USD$10 on EURUSD and take profit at 500 pips, you will make a profit of 500pipsx$10=$5000 within hours.
Of course both investment tools can make money only if you know how to take care of your money management to reduce your risk to the lowest. Actually in my personal forex blog, I did write something about money management on how to limit your risk if you are wrong of your trade.
Broker is platform that you need it to buy and sell your stocks or currency pairs (Forex) and they will take commission from every trade that you have transacted. If you want to try it out, you can apply for a Forex demo account to have a feel on what is Forex trading all about and try to read up Forex trading from babypips.com or my blog. In any case, it is all Free so take full advantage of it.
Absolutely can make money provided you can control your own psychology and have a sound money management to control your risk per trade.
Best Regards
Ah Kiat
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What to consider when choosing a Forex broker?
Posted by Ryanita
on
Friday, December 13, 2013
, under
forex 10 pips a day
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comments (0)
Chris
I have $5000 and I'm interested in trading forex. What are the best brokers on the internet?
Also when they say minimum trade size micro unit (1k) does that mean I have to buy at least 1000 units which is for instance for a currency (1.05) $1005?
Also what is the lot size? Is that the range of profit/loss? Like instead of gaining $1 for 1 pip gain $10 if I change the lot size?
Thanks
Answer
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
How much leverage are you comfortable trading in FOREX?
nauticalps
Does anyone have any suggestions on a leverage limit?
Many FOREX brokers allow up to 200:1 leverage. My trading strategy is to take just very small gains (3 or 4 pips at a time) and set the stop losses way out there just to avoid a total wipeout. I never trade on Fridays either and of course close out before the market closes.
Because of the giant stop losses, I am only comfortable with around 20:1 leverage or maybe 30:1.
In other words, with a $500 margin account balance, I would only consider buying 0.1 lots of EURUSD (10,000) at a time; 0.2 lots with $700; 0.3 lots with $1100 and so on...
Does anyone out there use the same strategy as me and feel comfortable with higher leverage like 40:1, 50:1 or even higher?
Answer
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important.
When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1.
Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week.
I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call.
Paul
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