TRADING PSYCHOLOGY
Need ideas on how to generate alpha from G10 FX?
Includes 10 free charts a month.
SUBSCRIBE NOW FOR JUST $25.00 per month
(cancel any time)
ANNUAL SUBSCRIPTION JUST $275.00 per year
(cancel any time)
Human emotions are very powerful. They almost always tend to get in the way of sound decision making. Taking risk in markets is a highly emotional practice, this process aims at minimizing those emotions and systematizing a process.
Having the proper risk parameters allows traders to minimize mistakes.
Knowing your downside is crucial in this process. Risk capital is only deployed when all the parameters are met.
- Size appropriately
- Define entry levels
- Define risk capital
- Develop consistency in risk taking so you can achieve consistent results
Our process, the FX Biscuit, will go deeper than just signal generation. We will offer proper set-ups, complete with candle charts to help users visualize the process.
Example of a Trade Set-up
- tradesetup
- Entry: 125.000
- Stop: 125.40
- Risk Capital: $ 1,000
- Sizing: This is one of the most important components in risk managing a position. Below is a sizing table. Such table will be included for every set-up presented.
| SECURITY | ENTRY | STOP | RISK | NOTIONAL | 1-1 TARGET | 2-1 TARGET | 3-1 TARGET |
|---|---|---|---|---|---|---|---|
| EURJPY | 125 | 125.4 | $ 2,000.00 | € 523,250.00 | 124.6 | 124.2 | 123.8 |
| EURJPY | 125 | 125.4 | $ 1,500.00 | € 392,437.50 | 124.6 | 124.2 | 123.8 |
| EURJPY | 125 | 125.4 | $ 1,000.00 | € 261,625.00 | 124.6 | 124.2 | 123.8 |
| EURJPY | 125 | 125.4 | $ 500.00 | € 130,812.50 | 124.6 | 124.2 | 123.8 |
| EURJPY | 125 | 125.4 | $ 250.0 | € 65,406.20 | 124.6 | 124.2 | 123.8 |
| EURJPY | 125 | 125.4 | $ 100.00 | € 26,162.50 | 124.6 | 124.2 | 123.8 |