May 242014
 
I’d like to understand why major variations occur per Eur / Usd in the absence of really important events.
Euro Dollar winning chart Since a variation of 300 pips 10:1 leverage loss (or gain) would be $ 3000, it is clear that the risk taken should be reasonable. if you lose money, there is the temptation to increase your leverage to the next transaction to recover the loss. Risk management in this case recommend that every transaction will not commit more than 15-20 margin and the possible loss of more than 5% of the capital. If it remains at the 5% is like you have other 19 tokens in 20 tries. Probability go wrong transaction is 50% but the market can turn. Therefore it is better to set strategy for both gain and especially the loss. If you win more is better and there are no limits, to lose is limited to the capital paid and it’s very frustrating.
The winning strategy is therefore to decide BEFORE a transaction which is the maximum amount that you want to set the “stop loss”
Happy Trading !

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