MOREPIPS TRADERS

  Objectives: If you take this lesson to the end, you will know: 1.     How to determine your Risk. 2.     How to determine your TP and SL levels. 3.     How to carry out Back-Testing. 4.     How to determine the success rate of indicators. Money management Money management refers to the set of principles and rules followed in order to protect your trading capital. It helps in the process of deciding your risk per trade. Implementing these rules protects your account from large losses.   Risk   Risk is the percentage of your account you can lose comfortably, if you must lose a trade. Advisably, only 2% of your account should be your risk. That is, only 2% of your account on all trades. If you decide to take only one trade, the 2% should go on it. However, for two positions, go 1% on each position, and for four positions, go 0.5% on each position. EXAMPLE For a $500 account, Risk = 2% of 500        ...

Objectives: If you take this lesson to the end, you will: 1. Understand all the Basic Forex Terminologies. 2. Be able to utilize them. Exchange Rate/Price This is the amount of the quote currency needed for you to get one unit of the base currency. Pip A pip is the smallest unit of price for any currency pair. It is the 4 th digit after the decimal in a price. A "pip" stands for "percentage in point" or "price interest point." It is a standardized unit of measurement that represents the smallest price movement in the exchange rate of a currency pair. Most currency pairs are quoted to four or five decimal places, and the pip is typically the last decimal place in the quote. For example, if the EUR/USD currency pair moves from 1.1200 to 1.1201, it has moved one pip. Pipette The pipette is one-tenth of a pip. It is the 5 th digit after the decimal points. Lot Size Forex is traded in specific amounts called lots, which is the number of currency units you wi...