to trade profitably. So what is the risk/reward ratio of this trade? As such, knowing risk-off/risk-on environments end up in diversifying the overall money management Forex portfolio. It would be ideal if you could always find trades that had high rewards and low risk, but what you might find in reality could be very different. Or, what works on stocks, fails in bonds. For example, any positions they take, with any currency pair and any time-frame, has a 120 pips stop loss. There is a much better way to grow your account faster. Troubles with the Eurozone? Thats so true in Forex trading! If you open a 1000 account and make 5 profit per month, your account balance will be 3,225.10 after 2 years, if you dont withdraw any money and keep on making 5 profit every month for 2 years.
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Because following this simple rule, you need over seventy (70!) consecutive losing trades to wipe out only half of your account. So A sweat dream changes to a nightmare, and someone who wanted to become a multi millionaire within 1 to 2 years, gives up on Forex trading after losing several thousands of dollars. As such, you can grow your account with lower percentage wins. Many traders choose to close positions over the weekend. To use it, discipline is key.
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