Sunday, July 25, 2010

FOREX TRADING 101 - CONT'D

The critical factor in achieving success as a trader is your ability to plan. You need to plan your trades to minutes details. You need to have a clear view of the following key issues:

a) Target monthly returns on investment i.e. 5%, 10%, 50% etc
b) Monthly returns on investment broken down into weekly and daily returns
c) Your target return clearly expressed in US$
d) Total number of pips required to meet your target broken down into daily and weekly pips required to meet your target.
e) The lot size commensurate to the value of your account. I will my analysis in respect of:

Daily Returns on Investment
Recommended ratio of lot size to account size
Returns on investment table
Attached Thumbnails
Click image for larger version  Name: Daily Returns on Investment.jpg Views: 20 Size: 76.1 KB ID: 503649 Click image for larger version  Name: Recommended Ratio of lot size.jpg Views: 24 Size: 63.6 KB ID: 503650 Click image for larger version  Name: Returns on investment tale.jpg Views: 18 Size: 60.8 KB ID: 503651

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