new forex

The Risk/Reward Calculation
Divide the amount of money you stand to lose if the trade is unsuccessful (risk) by the amount of money you stand to win if the trade is successful (reward).
For example, let’s say a trader is thinking about buying the GBPUSD pair. Based upon where he wants to place his stop loss he stands to lose $50 if the trade doesn’t work out. That is the potential risk. And let’s say based upon where he wants to place...

Risk/Reward Moves Inversely to Favorable Price Action
Here is an example. Let’s say you buy GBPUSD at 1.6600; you place a take profit order at 1.6700 and a stop loss order at 1.6500. Your risk is 100 points and your possible profit is 100 points. The risk/reward is 100:100, which is a 1:1 risk reward ratio...

When you think of Gold the first thought that comes to mind is Jewelry, then as an investment and as a means of safeguarding against economic or geo-political uncertainty.
How do you distinguish what takes precedence and how much weight to give each? This is one of the most commonly asked questions by Gold traders and people looking to get into trading Gold. The key is to understand the make-up of the Gold industry and...

EURUSD Forecasts – 1 Month, 3 Months, and 1 Year
On Wednesday, August 27 I received a request from a broadcast journalist for a professional opinion on how a currency pair will move in three different time frames; one, three and twelve months. They said I could choose the currency pair and the interview...