Originally posted by uniquetrader

 

Originally posted by Sasha

Initially I was also unable to understand the full concept of this strength and weakness of a currency. After some research on google and by reading some articles on different forums, now I can understand it to some extent. Maybe there is still much more in this concept. I will explain what I got.

Lets take an example of USD pairs and GBP pairs. There are many USD pairs (eu usd, usd jpy, usd cad etc) and similarly many GBP pairs. Lets assume that usd pairs show that USD is strengthning. e.g.(eu/usd going down, usd/jpy going up, usd/cad going up and same with other pairs). Similarly GBP is weakning. In this condition the GBP/USD pair will go downward coz denominator is strenghening.

So to meausre strength and weakness of a pair, you will have to see different pairs. You will analyze their trends and then you can conclude if it is going upward or downward.

I got it. Its logically right that by analyzing relevant pairs, we can check the strength of a currency. I think there will be an indicator for such thing.

thank you sasha for this explanation and soon i will share a indicator that will show the strength and weakness and you can also see some sites where you can see online these data on that.

Originally posted by sadscorpion

1. Never Let a Winner Turn Into a Loser
2. Logic Wins, Impulse Kills
3. Never Risk More Than 2% per Trade
4. Trigger Fundamentally, Enter and Exit Technically
5. Always Pair Strong With Weak
6. Being Right but Being Early Simply Means That You Are Wrong
7. Know the Difference Between Scaling In and Adding to a Loser
8. What is Mathematically Optimal Is Psychologically Impossible
9. Risk Can Be Predetermined, but Reward Is Unpredictable
10. No Excuses, Ever

Note:- collected from diffrent sources from diffrent great traders books

 

may i add one?

pray to the god before we start to trade...

thank you very much

may i add one?

pray to the god before we start to trade...

thank you very much

Very true. This thing will make us amazingly calm during trading.

Nice share and it will help us to make a good strategy and by keeping this point in our mind we can trade with some discipline and knowledge and be able to make a huge profit through it.

that right first of all when we open an account and deposit the money .. that time we invest only the amount which is we bear as loss. so why we take only 2%.. in this case i am taking 20% risk. i have 5 chance to trade. if i face the continue loss. but still now i am not get this . but i make 15 trades profit continuosly. but i like very much ur post. thanks.

If u take 20% risk and u think that 5 chances are a lot chances then u r mistaken. There is 90% chance of 5 continuous losses or maybe more chance.

Originally posted by ashwiniji

that right first of all when we open an account and deposit the money .. that time we invest only the amount which is we bear as loss. so why we take only 2%.. in this case i am taking 20% risk. i have 5 chance to trade. if i face the continue loss. but still now i am not get this . but i make 15 trades profit continuosly. but i like very much ur post. thanks.

Same concept is used by martingale users. They think that they cannot loose 5 or 10 trades they set continuously. They hope that they will win at least one before loosing a fixed maximum number of trades. But when they loose they loose all account. 

Originally posted by ironical

I agree with all statements except one that is normally said by different traders. "no risk more than 2% per trade". Whenever u go to any forex site, broker or forum. You will see a common statement that never risk more than you can loose. So when u open an account with a broker, you must not deposit more than u want to loose. Once you have deposited, now trade with your own strategy if you have. If you want to follow someone, follow him or whatever.

But this 2% thing is not logical because you are already warned once you open an account. You are already risking by depositing the money.

 

Forgive me, but I disagree with your point here,,,

You must calculate your risk in any trade you are willing to start or you might be loosing most if not all the money you already have deposited in your account and this will lead you even to more loss,,,,

What I advice you is maybe to set 10% max risk for every trade you start but don't leave it for luck or you will be doing the biggest mistake in forex,,, Thinking that You can beat the market all by yourself,,, You can't do that because one alone can't stand against a full market