The first step to capital management to be able to shop from the trading platform that is running, and exercising on market orders any sale or purchase orders at the market price at the time, and put the matter Ooachara sell at a certain price determined by either PAL or Entry Limit the Entry Stop and must be trained the development process boundaries, such as stop loss or to determine whether the target in the development process, or after activated. It must also mastered the ways of breaking the contract to achieving the goal or hit the suspension or involuntary termination of the process.
If we want the application to the program FXopen model, we find some commands which it is accountable Mtagron dealing with the program for several months without having to understand its functions, and recall, for example, is: CAR, or how to determine Altreng Stop. The best way to learn the properties of the program trading is the question if they are not explaining the program facilitator in Arabic is not fluent in a foreign language.
There is no doubt that the master command mode and deal with the deal as smoothly as possible is the gateway to capital management.
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Margin TradingMargin trading or margin is the most aspects of management of capital importance. It contains the following aspects:
1) Leverage: is the money companies spent on speculative accounts of participants as a religion with a temporary order to raise capital, which in the months FILE 1:100 weakness. If you booked any of the head of the owner of a process per the company it gives you about $ 100 for the conflict, and then you recover after the operation if the process goes on all cases. And increase the risk of trading, of course, the higher the value of Leverage, P 1:200 in the highest risk of 1:100 and 1:400 of the two higher by twice the gravity of 1:200 and 4 times the gravity of 1:100.
Linked to this paragraph point value, which is approximately 1 / 10, 000 of the value of the contract
They are in the EUR / USD for example, 10 cents in the contract of $ 1000, and per the contract of $ 10,000, and so on ... While in the contract for $ 10,000 / CHF 0.8 of the dollar, and 1.9 (ie dollars and 90 cents) in the EUR / GBP.
2) and the margin Hamchan: first, the margin is reserved or user, which is when those who want safety in their operations do not exceed 10% of the balance, the reserve margin, or the so-called Equity is a firm guarantee for the speculation in the event of loss, not much leverage, and close the contract loss 0 value of the amount of leverage after consuming all or most of the amount of reserve margin, and this Iocodna the third point:
3) Margin Cole: when consumed margin reserved for the process, and consumes up to close the margin process Andechsarthma together. Perhaps this procedure scares a lot of traders, it is a sign of loss of account in whole or most part, does not allow a trader to continue working without the addition of new cash to balance compensation for this loss which in some cases all savings in circulation, is forced out of the market.
4) Therefore, the advice not to increase the margin in all operations carried out at one time 10% of the balance, and a commitment to the way such as stop loss points, or cessation of hedging. And preferably in many cases, such as swing does not reach the margin used for 5% of the balance of the nature of these operations, which placed it stops the loss away.
5) associated with this effect also spreads or drawing is set by the speculative companies of the contract, for example, he points to hold a euro / dollar, and more than a little Ookthir by currency pair, and up to an average between the two points and twelve points, that is in many trading pairs, which varies from company to company. Spread this must be taken into account when planning the operation, which amount to lose even before the rolling starts its operation, and it has to be compensated by thinking of profit.
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Stop Loss
This topic is Study of highly sensitive, and therefore a large pick to the success of the policy of capital. And the degree of sensitivity comes from a position of traffickers in part:
- Some of them do not give heed to stop at all, and considers that suspension is the loss of unnecessary, and that the drain of capital, while if the patience of stores Price returned to the important reverse,
- And some of them may be forced to stay put, but in a position so far, not bothered by the support and resistance, or top or bottom, but by His in the way of the deal before Margin Cole a few steps,
- And some of them puts it, without respect to its place remains, which drives the closer the price of it, may be surprised to loss of a hundred points or more, which drives the stay, hoping to become the price for his deal,
- And some of them stay put in its proper place, and accept the loss of points with an open mind in the belief that in fact did not lose as much as time and gain peace of mind and the rest of his account.
The development of our brother Abu Asim referendum on the use of the stay in which he concluded at this point to the following result:
* Yes, I use it consistently in all of My Position 38.33%
* I use most often 23.33%
* I use it rarely 25.00%
* Do not use it at all 13.33%
Those who said that the price point would definitely return to an open position no matter how long this behavior inappropriate and impractical, if so, then the means to cripple the account for the duration of a starting price shops reverse deal, if it is allowed to continue up the loss of several hundred points but without the margin Cole, and we know that many of us do not fill the commitment by acceptable risk, as well as they may not return the price point your position at all. Soon, from this statement we say to those who have to stay put near the price margin Cole.
The point of putting the stay and then continue to move whenever they were approached by the price, it is one of two things:
- The author of the study or stop without checking, that is haphazard, so he is not sure of his work, so he is hesitant,
- The author of the stay according to a study to develop a correct price and currency movements, based on the conditions of technical analysis or fundamental or a successful strategy, but the stay order to move up from being affected by the loss of the stay, and this kind of loathing, but traders stay to myself, why not a scientific or technical, but driven by feelings fear and hesitation that are not connected with the process, and treatment of this problem lies in that the shops do not recommend that you stick to the screen during the transaction. It has to be process data and closes the device, and resigned himself to accept the loss as expected profit.
Those who said he uses the stay in most cases, we say he should put a halt to all of the cases, only be a meaning of his answer of "mostly" because when you do not stay put Balheidj replace him. There is no doubt that the hedging as an alternative to suspension points if shops are familiar with the use of hedging.
The product was finally committed to the ideal point of the development moratorium in all his business dealings, it is used according to the stay the following rules:
1) examine the location point by way of trading suspension followed by:
- In a secure location under the line of support or above resistance line
- Above or below the intersection, immediately or after a certain number of points, such as what happens with the strategies used moving average index
- Either as a fixed number strategy, such as 40 points in the strategy of the hourly uptrend broken, or by the movement of the husband such as 30 points for the euro / dollar
2) A trust is a gain not loss, it works in case you lose the deal Kalmkabh of the car. It is therefore essential to determine the value of its contracts on the possible loss of the value of the deal does not achieve the profit, the profit is coming if not this deal will be in the other, while the multiplicity of large losses is not considered eating nutritious balance. But if the account is not likely loss of value of the stay, he must cancel the entire process, or reduce the size of the contracts to become able to bear the loss of the amount of the stay.
3) To the extent that the stay put in the position of a value borne by the thoughtful balance, home stores have the same risk of loss before profit must be respect for the stay, not be canceled or drives. It goes without saying that we must think of shops in several possibilities before his deal to be implemented:
- The issuance of emergency news shake the market, and move the currency hundred points in a single candle,
- Disconnect Balent whether it is a sudden interruption of electrical or telephone company,
- Failure affects an emergency program traded.
Therefore, it is necessary Only an art of capital management is essential for the stores, but there are those who say it does not take never cease, but is keen to replace him, Hedging , and this is the following article
