A few years ago I had the opportunity to instruct and assist a Forex trader who was trying to become a full time Forex trader and trade for a living. He asked me to coach him one on one and he needed me to be his mentor. I used many of my Forex secret trading techniques and after only a few months of training he was already profitable and trading full time. We are still working together on strategy development and market research.
In Forex you use individual contracts. The standard contract size is 100,000 units. In this case you also talk about one lot. For each lot, the trader controls 100,000 units of the base currency. Some brokers allow you to open mini accounts.
To define, a stop loss is a concept that you are required to use from the first day of your Forex trading training. It is your friend and it is there to protect your money. Whenever a trade is placed, you will analyse three variables:
A value of 0% on the Williams %R shows that the closing price is the same as the period high, but often the indicator will remain very close to 0% for days on end in a strong bull move where the closing prices are near to period highs. A value of -100% shows that the closing price is identical to the period low, and the opposite scenario is common here.
First off, I want to debunk the big fat lie that has been perpetuated by all the dishonest Forex robot trader makers out there who are only interested in selling their automatic Forex trading system - the lie that you don't require any specialized knowledge and all you need to do is to set it and forget it. Yes, it's true that you don't need to have any trading experience to get started with Forex automatic trading, but you do need a desire and willingness to educate yourself with the right resources.
On the other hand an ECN broker allows you to enter a bid inside or outside the spread allowing for tighter spreads and more liquidity.Moreover with ecn forex there is no counterparty risk because ecn forex brokers do not trade against you but through its network pass on your order to the best possible match .
The first thing you need is a good relationship with the broker and the financial company that you have signed up with to help advice and manage your account, and this is perhaps the most important thing to have. Having a broker that is not there or a diluted connection with your managed account is one thing that will set back your profit making potential on the market. You need to be able to connect and communicate with your broker in a way that allows for you to have a synergy when approaching the market. This is the only way that you can really learn for yourself and tackle the market on your own when the time comes.