Management of capital and risk

In order to profit in any financial market, it is necessary to have the theoretical skills, experience and business strategy, which includes:

* Fundamental analysis.

* Technical analysis.

* Management of capital and risk.

Fundamental analysis lets you set the currency rates dependent on the economic situation of the country, explains purposes and implements central banks financial policy, finds proportion between various financial markets, as well as the grounds of their ups and downs.

Fundamental analysis is used for medium-and long-term forecasts and estimates of the market prospects. Based on interconnected fundamental economical factors. The difficulty lies in the fact that such a change may affect other indices, which runs at 20-50 for each Member. Therefore, the fundamental analysis is not adjusted by the majority, only 10-20% of traders go into it.

Technical analysis involves consideration of price charts, price history and some configuration changes values in a specified time. Ease of use of technology analysis lies in the fact that cost data is easily available on-line. In General, the technical analysis provides information on buying activity and only seemingly about the volume, just a short period of time, known as time-frames.

Management of risk capital and is the third aspect of trading system, which is no less important than the previous ones. Financial transactions in Forex is dangerous, and mostly, the higher the income, the greater the risk. After the management of capital and risk rules allows to reduce losses and increase profit.

Management of funds and the risks arising from the 18th century, when used on gambling, increase chances to win. Experienced gamblers retained their own strategies, waiting until times of loss, it is to earn more later. The work on financial markets is partly similar to games of chance, since both gains and losses are Probabilistic nature, therefore, capital and risk management principles are used in the financial sector as well.

All too often, novice traders may not pay attention to the seriousness of the management of capital and risk, and in most cases the neglect can lead to a lamentable results, even with the presence of good marketing strategy. Not only the trader profits is vital to trading, but also the amount of money that is not lost in the process of work. And so, to trade successfully evolved, one should take into account the share of funds used for the transaction that runs at risk.

Source: http://forexcontestnews.com/

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Day Trading for beginners, part 1: venture capital to get started on day Trading

Probably you are quite well in life outside the trading day so let's help losing your day trading newbie status as soon as possible.

Let's start with how much money you need.Ultimately, no matter How curiosity or enthusiastic may about creating $ 100 k + per year as a day trader, you need a few dollars to get off the ground; it takes money to make money, as the old saying goes.

And if you have the necessary risk capital available (through venture capital money might be able to miss, no money you need to pay for the mortgage or your kids education), and then the rest is simple.

Remember: venture capital is money you may be able to lose. without exception! If it has gone, it went and I still placing food on the table, living in your current residence and otherwise pay all the Bills. If you break this rule you're guaranteed to fail in day trading.

So how much capital is enough?

I day trade futures himself.I think you'll need at least $ 5,000 in risk capital available (preferably $ 25,000) to perform more Futures occupations with your own money.You can make $ 100 k you first year starting with $ 5,000, but is unlikely.Therefore, I recommend 25,000 $ as a starting point if you're really serious and If you're in stock, you will need still more capital unless you're day trading penny stocks. a minor your account limits to trading the dollar higher costs in inventories and this is not good.Also, there is no such leverage stocks as futures traders, which also limits how you can make assimilation, of course, you can get some leverage day trading options on stocks.This will reduce your capital requirements but $ 5,000 still is the minimum that would commit. otherwise, you're simply too vulnerable to getting rid of the trading day game before you even get started.

Find out more about this issue with free professional traders e-including 3 special reports and a 25 minute video study. click the link below ...Download now free E-courses

Brian Heyliger is one day successful futures and swing trader who specializes in the P & S e-mini, Treasury bonds and other markets with high-probability, high-profit.

Article source: http://ezinearticles.com/?expert=brian_heyliger

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Article submitted on: November 06, 2010

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Exto Capital Technical: Euro pushes though key resistance

 

The Euro pushed through the 1.33 resistance area and pressed higher to almost 1.35. The better than expect IFO, along with an increasing appetite for riskier currencies, lead the EUR/USD higher.

Analysis provided by Exto Capital

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Exto Capital SA is an independent brokerage firm offering online forex trading and CFD trading on indices and commodities. With its asset management partner Exto Financials SA based in Switzerland, it offers a full range of investment products and services to individuals and institutions. Exto ...
Disclaimer:
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Currency trading is not conducted on a regulated exchange, and as a result there are associated risks with forex trading.  Related Products

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Overview Adaptation is the name of the game in long term trading success. Join Fernando Gonzalez ...

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Overview This course is more than simple rules, this class explores and shows you how to ...

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Exto Capital Technical: Market tests the yen

 

The Yen strengthen during the week as the dollar weaken as the 2-year US yields declined. Market participants will be testing the BOJ’s resolve after the USD/JPY failed to hold the post intervention levels and the 50-day moving average.

Analysis provided by Exto Capital

Exto Capital
Exto Capital SA is an independent brokerage firm offering online forex trading and CFD trading on indices and commodities. With its asset management partner Exto Financials SA based in Switzerland, it offers a full range of investment products and services to individuals and institutions. Exto ...
Disclaimer:
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Currency trading is not conducted on a regulated exchange, and as a result there are associated risks with forex trading.  Related Products

Broad Market Analysis

Overview Adaptation is the name of the game in long term trading success. Join Fernando Gonzalez ...

Controlling the Trade

Overview This course is more than simple rules, this class explores and shows you how to ...

View the original article here