Archive

Not everyone can trade Forex successfully — some simply don’t have enough time to trade or to learn, others can’t reach a desired level of profitability; and not every Forex trader has enough money to live from his trading. That’s where PAMM (Percentage Allocation Management Module) accounts come …

A few days ago I’ve finished reading another trading book — Trade Your Way to Financial Freedom by Van K. Tharp. I’ve already written about it 3 years ago. But back then I’ve read only the chapters dedicated R-multiple risk management and some pages …

Every trading system is a complex object with a lot of rules. All Forex systems should consist of the entry and exit rules, define the market (instrument) they are designed for and state some position sizing (money management) strategy. Most traders I know give the highest priority to the entry rules of the system, pay …

When opening a Forex position it’s very important to consider your own maximum risk tolerance, which usually depends on the account size and the stop-loss of the said position. Risking only a small fixed fraction of your account balance is a nice way to limit your losses and to organize the whole trading process. But …

Following up on my blog posts about the importance of keeping a trade journal in Forex trading. I’ve decided the ask my readers if they use this great tool for improving the overall Forex system and money management in particular. You can find my previous posts with a good example of trade journal (in Excel format) …

I’ve already written about the trade journal and its application in Forex trading a year ago. Since then I’ve been using the journal extensively myself and I saw many disadvantages in it that could be fixed. I won’t be going far into saying how important it is to have …

Taking loss is a part of the Forex trading process. Even the best systems show losing positions and, over time, streaks of such losing positions. To protect your trading account’s balance from disappearing, it’s important to follow some money management (or otherwise called risk management) system. Limiting your …

A new trading e-book has been uploaded to my site today. It’s Money Management and Risk Management by Ryan Jones. As the title of this book goes, it’s about money management — one of the most important parts of Forex trading (and not only Forex, but any other …

The new e-book (actually an article excerpt from the Futures Magazine) was uploaded to my site today. It’s about the risk control and money management in Forex and elsewhere. The whole book is only 4 pages long, but it succeeds in introducing the most important approaches to money management …

A new on-line Forex toll was added to my site today. It’s a calculator for the risk and reward levels and ratio based on the Fibonacci retracements. To use this tool you just need to enter the values for the local maximum and minimum levels and the …