For the novice trader
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What is Take Profit? Take Profit is an order to automatically close the deal with the profit when the price level is reached. Take Profit is translated into Russian as "Take Profit", this order is usually set when a trader cannot continuously watch the open trade or expects sharp price movements. How do we set Take Profit? Take Profit is set for a Buy trade above the order price, as we anticipate the price to move upwards. For example, if we opened a buy trade at EURUSD at 1.12595, and we want to make a 50 pips profit without being in the trading terminal, we should set a take profit...
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The trader achieves profits in the market by applying a simple rule: buy currency cheaper and sell it more expensive. To do this, the trader gives commands to sequentially open and close trading positions. A trading position is opened by a broker (an intermediary) by a market order or by executing a pending order, and a position is closed by a trader's request or by executing stop loss (stop loss) and take profit (take profit) orders. The main objective of a text profit and stop loss order is to limit possible losses. Take Profit is the order, which is similar to StopLoss order, but exactly the opposite, its task is to help the trader to exit the deal with profit. Placing TakeProfit and StopLoss orders allows trader not to be all...
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In articles the term "position management" is often used, but in practice most new traders have little idea of the difference between support and simple monitoring of an open position. Today we will get acquainted with one of the methods of position management on the currency market - the Tralling Stop. As a rule, a trailing stop is used in trend strategies, when it is necessary to keep the profit already taken, though it is possible to use it in any trading strategy. For example, after the rebound in price from the support line of an uptrend, you open a long position, taking a take profit at the resistance line and placing a stop loss below the local low. As you know, the market is not constant. Suppose, due to some factors...
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Every trader sooner or later begins to experiment with technical indicators, trying to find "the one" which will allow opening deals with at least 100% profitability. Often, the result of such investigations becomes a diagram with all sorts of "superprofitable" indicators' signals that reminds one of abstractionists' pictures. The best is the enemy of the good, and, unfortunately, many classical indicators are becoming forgotten, although their effectiveness is not inferior, and sometimes even superior to all grails. Today we are going to talk about one of such indicators, namely MACD. MACD is an indicator for beginners MACD is an abbreviation of Moving Average Convergence Divergence. Its name is pronounced correctly...
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Why does a trader come to the foreign exchange market? Naturally, not for a thrill, but for profit. That is why the rules of technical analysis are studied, different trading strategies are tried and a lot of literature is read. Finally, the result is achieved - the profit is made. And here one of the most important questions arises - how to get your hard-earned money? The problem is that many traders choose a broker for trading, not really being interested in how to withdraw their profit. Let's find out how to withdraw money from your brokerage account. What to do before opening a real account Before you open a real account with your broker, you should first of all ask your broker if you can withdraw your profit from the...
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Trading lot on the currency market is a unit of measurement of the volume of trading instruments. The standard lot means 100 thousand units of currency. That is, a long position of 1 lot on the euro/dollar pair implies the purchase of 100 thousand euros for dollars, and a short position of 2 lots on the currency pair USD/CAD - the sale of 200 thousand dollars in exchange for Canadian currency. Similar to the stock exchange, trading lot on the currency market is a standard contract size. It is worth noting that standard lots are not used in interbank practice. Banks sell and buy currency in any volume, that's why the very concept of "trading lot" is relevant only for .....
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Every trader sooner or later comes across the concept of leverage, margin, and collateral. And, having penetrated into the essence of the question, traders are divided into two camps. The first one associates high leverage with the inevitable loss of deposit. The others consider this tool useful, moreover, they connect it with the possibility of diversification due to small margin and good stock of free funds. There are other pluses as well as minuses. Shall we try to understand? What is a leverage? To begin with, let us answer the question: what is leverage? Leverage is a leverage, which increases the amount of money a trader gives as collateral to open and maintain a position. In doing so, the broker's role is to provide...
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One of the first rules of trading on the currency market, which is persistently put in the trader's head, is the obligatory placement of a stop-loss order to limit his possible loss if the price goes in the opposite direction to the open trade. There is no doubt that one of the most important qualities of a trader is the ability to manage his losses - this is the direct purpose of StopLoss order. What is StopLoss What is a Stop Loss Order for? How Stop Loss Order Works How to set Stop Loss Order in MetaTrader 4 Technical Rules for Setting a Stop Loss Order How to Calculate the Size of a Stop Loss Order What is Breakeven and How to Use it What is Trailing Stop Loss or Trailing...
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This year I visited ShowFx World in Kiev and I would like to tell you about the speech of Tom Hugard, one of the most successful traders in a very large hedge fund. I should point out right away that in this article I'm going to quote his words as I understood them for myself. I've realized once again that success in trading is determined by psychology, not by strategy. It's nice to hear another confirmation of my opinion from the lips of a professional of such a level. *The slides used in this article are taken from the author's presentation. Principles of 2% successful traders The first, most important principle that guides successful traders, is to buy the strong and discount the weak. What is this...
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As a coach I cooperate with a small financial company, a professional participant of the securities market, which, among other things, provides trust management of clients' money. We have one trader, let's call him Mikhail, who for quite a long time showed very good, and most importantly stable results on a mini-account (about 3000 $). He was able to consistently bring his account up to about 5 000$ for a few months, and then withdrew 2 000 $ and started over again, repeating his success over and over again. In the end, we all agreed that Michael has abilities and skills of a trader. After examining his statement, we saw a certain stability: a good equity curve,...
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What is a trading plan, why do I need one and how do I make one? A trader's trading plan can be as simple or as complex as you want. Of course, a plan that is too simple is not informative enough to successfully implement key rules and/or strategies during each trading session. Conversely, if the plan is too complicated, it will be difficult for you to stick to it, and you may eventually give up using it altogether. Therefore, you need to think through the best option so that it is not time-consuming, while being detailed enough for self-analysis. The main task of a trading plan is to keep you calm and relaxed during...
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Despite the variety of all possible trading terminals, the MetaTrader 4 platform is still the most popular tool for trading on the foreign exchange market. The interface of the MetaTrader 4 trading platform is intuitive and does not require any special education. Nevertheless, the seemingly simple things sometimes cause questions for beginner traders. To assess your trading account or make a decision to open or close a position, you need to constantly monitor the main indicators of your account. The MetaTrader 4 terminal has five such indicators: Balance, Funds, Collateral or Margin, Free or Free Margin, and Level. These indicators are available in the Terminal tab. Let's take a closer look at what each...
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How to become consistently successful in trading? To answer this question we must first understand what makes millions of traders unsuccessful - what makes them lose money? What prevents them from analyzing the market and placing orders correctly? Why they succumb to fear, gambling and abandon the rules of trading strategy and capital management? In this article you will learn how the science of human brain - neurobiology - explains these processes, what happens on the subconscious level and who intercepts the control of our behavior. What does a trader think? So, let's begin. The first thing worth knowing is "what we think. Where, in our head, does market analysis and decision making take place...
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I recently had a chance to talk to a trader who said he had a goal to increase his trading deposit from 150,000 to 250,000 rubles in about two months. The markets were kind to him, and he reached his goal even a few days earlier than planned. Now he has replenished the deposit, increasing it to 500,000 rubles. Lack of experience - the main problem of beginners His new goal is 1 000 000 rubles by the end of this year. Something tells me that this goal is unlikely to be achieved. The fact is that this guy is a rookie. He got to know the market only a few months ago, and so far...
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In spite of the fact that scalping is one of the most technically and psychologically difficult types of trading, it has long enjoyed well-deserved popularity. Naturally, EA developers have not missed scalping either. Nowadays lots of free and paid scalper robots based on different principles and trading strategies are available to traders. Some advisors trade only at certain hours, some trade all the time. Some EAs work better and some work worse. However, as a rule, a scalping Expert Advisor shows profit for a certain period, after which there is a period of slack and a series of trades with losses. The implementation of scalping strategies in Expert Advisors often reaches the absurdity, which leads to...
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One of the key qualities possessed by people who are successful in a wide variety of fields is the ability to take full responsibility for all actions, actions and results, for every step in life. It is well known that only a very small percentage of traders actually become successful. To be among them, you need to work hard - on your discipline and psychology, risk management and trading plan, overcome your fears and greed, learn to manage your emotions. All of this requires an enormous desire, a willingness to keep moving forward after losses, a desire to change your old habits. And this is impossible without learning to take responsibility for the trading process and for...
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In recent years, there are more and more people who want to try their hand as an investor in various financial markets, including the FOREX currency market. But, nevertheless, despite the appearance of new teaching methods, and despite the increase of the professional level of teachers themselves, I cannot help noticing that the most frequent mistakes among the beginners are passed on from year to year. In this article I want to analyze in detail what prevents new traders-investors to become successful at last. And to give some advice based on my life experience. Mistake 1: lack of knowledge So, let's start from the beginning. The first and most important mistake: the lack of the necessary base...
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In this article we will discuss the work with the mobile terminal MetaTrader 4 and 5. For example, let's take the installation of the application for android, which will be about the same as the first launch of MT4 on iOS on iPhone or iPad. Our life is becoming more and more remote from home computers, so this instruction will help you navigate the trading process on your mobile device. To install the MT4 mobile terminal on your device, you should first of all go to the Play Store and enter "MetaTrader" in the search box. From the list of applications found, select the one signed by MetaQuotes Software Corp. (as a rule, the first in the list) and go to...
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We've been running trader contests on our websites for over 4 years. During this time we have cooperated with different companies, tried many variants of rules and prizes, experimented and searched for the perfect contest for everyone. Being in fact a bridge between a broker and a trader I wondered what was the most successful contest. In order to make the topic more interesting, I asked companies and traders - our regular contest participants - questions about what it should be, how it affects trading on real accounts and whether it is worth participating in contests at all. Let's see what happened. Why brokers do or do not do...
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Sooner or later any trader comes to the idea of using Expert Advisors. By typing "trading advisor" into the search engine bar a trader receives an unimaginable number of links to resources offering trading robots. The classification of Expert Advisors is quite extensive: scalpers, martingale, grid traders, trend traders and so on. We will divide all existing Advisors on the Internet into categories of absolutely different plan: free, licensed and pirated (hacked) robots. With free Expert Advisors, everything is more or less clear: they have either worked out long ago, or their further development stopped for some reason. So let's consider the advantages and disadvantages of using the last two categories: paid licensed and cracked Expert Advisors. Why traders prefer pirate EAs? These days...
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