Things you should know before start trading

Surveying the Different Styles

First Things First: Assessing
Your Resources

As with many of life’s endeavors, when it comes to financial-
market trading, there are two main resources that people
never seem to have enough of: time and money. Deciding how
much of each you can devote to currency trading will help to
establish how you pursue your trading goals.

When it comes to money, I can’t stress enough that trading
capital has to be risk capital and that you should never risk
any money that you can’t afford to lose. The standard
definition of risk capital is money that, if lost, will not materially
affect your standard of living. It goes without saying that
borrowed money is not risk capital — you should never
use borrowed money for speculative trading. When you
determine how much risk capital you have available for
trading, you’ll have a better idea of what size account you
can trade and what position size you can handle.

Surveying the Different Styles

Although there are as many different trading styles and
market approaches in FX as there are individuals in the
market, most of them can be grouped into three main categories
that boil down to varying degrees of exposure to market risk.
If you prefer to get rid of risks while trading you can learn more about forex trading robot.
The two main elements of market risk are time and relative
price movements. The longer you hold a position, the more
risk you’re exposed to. The more of a price change you’re
anticipating, the more risk you’re exposed to.

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