Thursday, May 28, 2009

Know your risk vs. reward ratio

Post Written

Thursday, May 28, 2009 Forex Technical Analysis 2:02 PM
Know your risk vs. reward ratio: The minimum ratio you should be using is 2:1, so if you are successful on 50% of your trades you are doing well. For instance, if you are long GBP/USD and you want to earn 30 pips you should not risk more than 15 pips. You should never risk 30 pips in order to make 10 pips. If you do, you’ll make a lot more successful deals then unsuccessful ones, but the poor ones will ruin any of your chances for profit. Your risk vs. reward analysis is extremely important to trading successfully.

0 comments:

Subscribe to: Post Comments (Atom)

Forex Basic Technical Indicators

· Market Facilitation Index (BW MFI)

· Money Flow Index – MFI

· Force Index

· Accumulation / Distribution Indicator

· Volume Indicators

· Stochastic Oscillator

· Moving Average of Oscillator (OsMA)

· Commodity Channel Index (CCI)

· Standard Deviation (SD)

· Williams’ Percent Range (R)

· Relative Vigor Index (RVI)

· Relative Strength Index (RSI)

· Average Directional Movement Index (ADX)

· Parabolic Indicator

· Average True Range (ATR)

· Moving Average Convergence Divergence (MACD)

· Bollinger Bands

· Envelopes (Price Channel)

· Elder Ray Indicator

· Ichimoku Kinko Hyo

· Alligator

· Indicators. Trend Indicators.

· Triangle

· Reversal Chart Patterns

· Trend Analysis. The Main Notions.

· Dow Theory

· Technical Analysis
 

Forex Chart Technical Analysis © 2008 using D'Bluez Theme Designed by Ipiet Supported by Tadpole's Notez Based on FREEmium theme