Forex Gain Formula is a manual trading strategy that you can use to generate profits from forex market every month. It was designed to be very simple and very powerful at the same time. And unlike most trading systems all over the market, this system is tested for a long time and proved to be profitable even in the worst market conditions.
The reason for that, is that was designed based on the most powerful trading methods like trend following and wave trading.
At the same time, the system was meant to be very simple. You don’t have to be an experienced trader to be able to use it. In fact, even if you have no trading experience at all you would still make a lot of money from it just like pro traders.
There are many people that sign up to trade Forex that don’t understand or take the time to learn how and why to trade Forex. There are many risks involved in trading any kind of asset, whether it is stocks, bonds or currencies. If you are interested in trading, make sure you understand Forex risks.
One of the biggest Forex risks is a leveraged buy. Some Forex brokerages allow you to hold a certain amount of money in your account but leverage that amount to up to 200 times its worth. While this can be good if you are on the winning side of a trade, this can be devastating if you lose your entire accounts worth plus many times more.
So please, before you start trading .. make sure that you understand and apply money management rules. No matter how powerful the trading system is, without money management .. it will become a time bomb!
1. Red candle bar closes below FGF_35SMA low line (you will receive alert)
2. FGF_BURDYS and FGF_FBURD indicators draw red bar.
1. Blue candle bar closes above FGF_35SMA high line (you will receive alert)
2. FGF_BURDYS and FGF_FBURD indicators draw blue bar.
Exit trade when indicators turns agaist your trade direction. Trailing stop could be applied, stop loss for it depends on timeframe. Stop loss should be placed at previous low or high. Recommendation not to risk more than 2% of your initial capital per trade.
Getting emotional in the stock market is the worst thing that can happen to investors. The same goes for Forex traders as well. Seeing paper losses in everyday trade is pretty common.
Once to take a decision to buy something and make losses, you still hold on even if situations turn from bad to worse, only because you feel that things might turn back in your favor once again. The main problem here is that, the decision to stick to a losing trade for a long time is an emotional one, since you are in no mood to accept a loss and get out of the trade.
Forex market is largely influenced by the general market and you must always trade on what the indications based on the market are, and not just initiate one since your heart tells you to. At times, you might be so emotionally attached to a given currency in the Forex market, that most of your exposure to the Forex market would be in that particular currency.
Nothing wrong with it, as if you have reasonable grounds to believe that the currency will do well, then you will actually profit from the exchange. The ‘wrong’ thing is opening up a trade in a currency just because your heart tells you to.
In the case, if you strongly feel about any given currency, then it’s better to check the reality by having the look at what the market is indicating. That will give you a clear picture of whether or not you should trade in that currency.
The basic thing that is needed to be remembered is that once you have initiated a trade, and are incurring paper losses, and by all indications, things are likely to get even worse for you, then it is much better to book losses and come out of it rather than sticking to it till a time you ultimately are able to see some gains from it. Remember, the markets have little room for emotions.
Forex trading is not a win-win situation. Be prepared to lose on some trades as well. That’s the precise manner in which the market works. It is not really a question of whether you are right or not, the fact remains that markets move in an unexpected way and they have a knick of surprising people when they least expect it. All the fundamentals and even experience may be thrown into the air when the markets decide to do something.
So just follow the indications that the market gives you. If you feel that after initiating a trade, things are not going the way you had foreseen, book your losses and get out of it. You can invest the amount in some other trade and make good gains rather than sticking to your losing trade.
It is difficult for Forex traders to realize that the currency market is different from what the others are. Traders caught in a open position which their favorite tool is telling them to hold, will often do so, despite the fact that other tools are telling them to close and get off the market, and end up losing money.
The basic problem, of course, is that the trader is not looking at the market as is, but through the lenses of his own expectations about it and further using his favorite indicator to reinforce those ideas instead of looking at the bigger picture. And, encouraged by the fact that his chosen indicator is forecasting the profit he wants, the trader is focusing more on money than on the market.
If the Forex market was not unpredictable, it would collapse because all traders would profit all the time. There are many tools that can help traders predict the direction of the market and they usually do an efficient job. But even in the hands of the most experienced traders, the best tools occasionally fail to predict the market’s movements correctly.
Losing in trade because of predicting the market wrongly is an innate part of Forex trading and traders need to accept it. Besides, they need to learn to avoid getting in a position where they do not have many choices. For this, the trader needs to accept the fact that the foreign exchange market pretty much has a mind of its own and the traders have to follow its movements instead of trying to make it go in the direction they want it to!