Category: Traders’ Secrets

Traders’ Secrets is something that everyone would like to know, right?
How is it possible that some traders are successful all the time while others fail to make a profit all the time?
That is exactly what Traders’ Secrets will show you.
Traders-Paradise’s team reveal all trading and investing secrets to you, our visitors.

What will you find here?

How to find, buy, trade stocks, currencies, cryptos. You’ll find here what are the best strategies you can use, all with full explanation and examples.
Traders-Paradise gives you, our readers, this unique chance to uncover and fully understand everything and anything about trading and investing. The material presented here is originated from the experience of many executed trades, many mistakes made by traders and investors but written on the way that teaches you how to avoid these mistakes.

Moreover, here you’ll find some rare techniques and strategies that are successful forever, for any market condition. Also, how to trade with a little money and gain consistent returns. By following these posts you’ll e able to trade with greater success. You’ll increase your profits and your wealth, of course.

The main secret of Traders’ Secrets is that there shouldn’t be any secret for traders and investors. Rise up your trade by reading these posts, articles, and analyses!

You’ll enjoy every word written here. Moreover, after all, your trading and investing knowledge will be more extensive and effective.

Traders’ Secrets will arm you with those skills, so you’ll never have a losing trade again.

  • Call options -How to sell & write

    Call options -How to sell & write

    4 min read

    How to sell & write options? 6

    Call options are an investment contract in which a fee is paid for the right to buy or sell shares at a future date. When we are talking about writing a put or call option we are speaking about an investment contract in which a fee is paid for the right to buy or sell shares at a future date.

    Put and call options for stocks are typically sold in lots of 100 shares.

    A little review of history.

    The origins of writing an option date back to ancient times. Don’t think it is something new. Aristotle, the Greek philosopher, recorded an early example of options trading in his ”Politics”.

    The philosopher and mathematician Thales of Miletus studied astronomy as a way to predict olive harvests for his region. Thales believed there would be a coming bountiful olive harvest. But did not have the money to buy his own olive presses. So instead paid a fee for the right to access the olive presses of others.

    Do you see? This was the first options contract.

    So, writing a call option means that you are selling a call option. If you sell a call (also known as a “short call”) then you are obliged to sell stock at the strike price.

    Typically, a call is sold against long stock.

    When you buy some option $400 call option that you have the right to buy 100 shares of some company at $400.

    And maybe you asked yourself the question “who exactly am I buying it from?”

    To have the right to buy the stock at the strike price, somebody has had to take the other side of that transaction and agreed to give you the right to buy it.

    The ones that take the opposite side of the call option buyer are the “call option sellers.” And sometimes they are known as “call option writers”.

    When you BUY call options, you bought it from someone.




    That means that someone is giving you the rights to buy the underlying stock at the strike price by selling you that option.

    The act of CREATING and SELLING that call options contract to you by that person is the act of WRITING a call option.

    In execution, this means opening a call options position using the SELL TO OPEN order.

    When you do that, you create a new call options contract for trading in the options market and that is known as “Write” a call options contract because you are exactly “writing it up”.

    Selling options, whether Calls or Puts, is a popular trading technique to increase the returns on the portfolio.

    Selling Premium can prove successful when performed on a selective basis. But, if you don’t follow some specific guidelines, your long-term prospect of profitability is doubtful.

    Selling options for Income can be debatable because you don’t know are you making money with your options trading. When you take a look in your overall portfolio it can be difficult to measure each transaction success.

    But in this environment is yield-seeking, and selling options is a strategy designed to generate current income.

    Selling options is a bit more complex than buying options.

    That can involve extra risk. If sold options expire worthlessly, the seller gets to keep the money received for selling them.

    To be clear with more details.

    There are two types of call option selling.

    If you bought a call option and the price has gone up you can always just sell the call on the open market. This type of transaction is called a “Sell to Close” transaction because you are selling a position that you currently have.

    If you do not currently own the call option, but rather you are creating a new option contract and selling someone the right to buy the stock from you, then this is called “Sell to Open“, “Writing an Option“, or sometimes just “Selling an Option.”

    How to sell & write options? 1How to sell & write options? 2Writing or selling a call option is when you give the buyer of the call option the right to buy a stock from you at a certain price by a certain date. Simpler, the seller (also known as the writer) of the call option can be forced to sell a stock at the strike price. The seller of the call receives the premium that the buyer of the call option pays. If the seller of the call owns the underlying stock, then it is called “writing a covered call.” If the seller of the call does NOT own the underlying stock, then it is called “writing a naked call.” A covered call enables you to own a stock with unlimited downside risk and collect a premium for the call you sold.

    When you sell a covered call you are actually selling a synthetic put.

    If you are not comfy selling naked puts, then you should not be comfy selling a covered call. It is exactly the same as selling a put.

    If you are comfortable with the covered call, then there are numerous factors to analyze when entering any options position.

    Now, it is convenient to look at what factors can make a trade more likely to be profitable than another.

    At the top of any list is liquidity or the percentage of the difference between the bid and ask.
    If you are giving away too great a percentage to the market-makers or algorithms, then the costs of entering the transaction are too high.

    You should look to trade an options contract that has a bid/ask spread of less than 1.5%. Always consider that the more you give away to the bid/ask spread, not only entering but exiting the transaction.

    Well, this may prove difficult at times, but it isn’t easy to make money.  

    Besides this, all trade evaluations must consider the cost of commissions. While all of these costs make profitable trading that much more difficult, they must be included in your analysis.

    You should consider the relative strength index of the underlying, extreme conditions tend to provide more interesting trading opportunities.

    A seller is obligated to buy or sell an underlying security at a specified strike price if the buyer chooses to exercise the option.

    There must be a seller for every option buyer.

    There are several resolutions that must be made before selling options:

    1) What security to sell options on
    2) The type of option (call or put)
    3) The type of order (market, limit, stop-loss, stop-limit, trailing-stop-loss, or trailing-stop-limit)
    4) Trade amount that can be supported
    5) The number of options to sell
    6) The expiration month

    When all this information is collected, a trader goes into the brokerage account, select security and go to an options chain. Once an option has been selected, the trader goes to the options trade ticket. Then enter a sell to open order to sell options and makes the appropriate selections to place the order.

    Here are the key things you should remember with respect to buying and selling call options.

    You buy a call option only when you are bullish about the underlying asset.

    Upon expiry, the call option will be profitable only if the underlying has moved over and above the strike price. Buying a call option is also referred to as ‘Long on a Call Option’ or simply ‘Long Call’. To buy a call option you need to pay a premium to the option writer.

    The call option buyer has a limited risk (to the extent of the premium paid) and a potential to make an unlimited profit. The breakeven point is the point at which the call option buyer neither makes money nor experiences a loss.

    How to sell & write options? 4P&L = Max [0, (Spot Price – Strike Price)] – Premium Paid
    Breakeven point = Strike Price + Premium Paid
    When you sell a call option (also called option writing) only when you believe that upon expiry, the underlying asset will not increase beyond the strike price.

    Selling a call option is also called ‘Shorting a call option’ or simply ‘Short Call’.  

    When you sell a call option you receive the premium amount. The profit of an option seller is restricted to the premium he receives, however his loss is potentially unlimited.

    The breakdown point is the point at which the call option seller gives up all the premium he has made, which means he is neither making money nor is losing money.

     
    Since short option position carries unlimited risk, he is required to deposit margin. Margins in case of short options are similar to futures margin.


    P&L = Premium – Max [0, (Spot Price – Strike Price)]
    Breakdown point = Strike Price + Premium Received
    When you are bullish on a stock you can either buy the stock in the spot, buy its futures, or buy a call option.

     

    When you are bearish on a stock you can either sell the stock in the spot (although on an intraday basis), short futures, or short a call option.

    The calculation of the intrinsic value for the call option is standard, it does not change based on whether you are an option buyer/ seller.

    You sell a call option when you are bearish on a stock.

    When you sell a call option you receive a premium.

    Selling a call option requires you to deposit a margin.

    When you sell a call option your profit is limited to the extent of the premium you receive and your loss can potentially be unlimited.

    Nothing more, nothing less.

    Risk Disclosure (read carefully!)

  • Trade in Indian stock market and win in the markets

    Trade in Indian stock market and win in the markets

    How to trade in Indian stock market and win in the markets?
    To trade in India, you must have an exit strategy. And hesitancy isn’t helpful.

    By Guy Avtalyon

    To start trade in Indian stock market, you’ll need :

    1. trading account
    2. demat account
    3. savings account

    Trading and demat accounts are combinedly created which are then linked to your savings account.

    A trading account is used to buy or sell the shares while a demat account is used to store the shares.

    A great help when creating these accounts may come from the broker for a minimum charge. We would suggest you find a flat broker as the brokerage is less.

    In India, the broker must be SEBI certified.

    The markets are a mind game and to win this game, you will need a good plan and education.

    You have to think before you do anything. It is necessary to measure every move because it will have an influence on your next moves. You must have a strategy in mind to modify in case things do n’t correspond with your plan. 

    The most important thing will be to follow the plan consistently. Actually, there is no sure-shot formula for success in the stock market.  Just like any other skills, a new investor can learn stock with trial and error coupled with patience, discipline, research, and a sound understanding of the market.

    What should your plan have?

    How to trade in the Indian stock market?

    You have to define a logical expectation of return from your capital. How much capital to be put? There are some examples.

    Rs 25000/- is just a suggestive minimum, but depending on your strategy you have to find what is convenient capital requirement build on your style of investing or trading. To win this game, you have to decide the right mix of players which means, you have to work out a list of stocks, indices, options, that work for you in order to score your return objectives.

    So, the most important is to design a strategy to pick stocks/contracts to trade/invest in. You have to define a clear risk management strategy. If some stock is having a bad day on the market, you have to formulate a strategy, how much diversified the portfolio should be in order to cut losers and hold on to winners. This means a clear well-defined risk management strategy.

    You have to have well-defined rules when entering the basic factors. For example, results, sales growth, or technical factors like breakout along with a clear exit strategy. This means you have to have some entry and exit strategy.

    HOW TO MAKE YOUR RISK MANAGEMENT

    Risk Rules: The first step is to define how much to risk or how much to lose on one single trade.

    Just on the available trading or investing capital, you should decide reasonable limits you are comfortable losing. This is important because if you know the loss taking capacity, then trades will be done without fear of losing.  And when fear is not disturbing, you can make a decision without any emotions in your mind.  Fear of loss is the biggest barrier in trading and investing and the only way to overcome is pre-defining the risk rules in the form of loss-limits.

    Size of the trade: Don’t bet everything on one trade and go broke. Or bet too little and disable full profits to stay in the business.

    Both of these will drive you off the markets. In the first case, there is too many emotions or greed. When the trade goes against, it will be hard to press the exit button and you go broke because the position was large. The right side of the trade is such that which limits the losses to 1% or max 2% of the trading capital.

    Why trade in the Indian stock market

    There are some examples, for the people in India especially. On a trading capital e.g. Rs 2 lac, you can afford to lose max Rs 4000. Therefore actually trading is at 3000. And stop-loss is put in 2800, hence maximum loss per share would be 200.

    But 4000 is the maximum loss defined, as per strategy, therefore 4000/200 = 20 share can be bought at 3000 entailing a total investment of Rs. 60,000 (3000*20). With max risk at Rs. 4000 on this trade. Similarly, for investments, you should not invest more than 10% of the capital in any single stock. For the capital of Rs.2 lac, max Rs. 20,000 can be invested in a single stock, thereby creating a portfolio of 20 stocks.

    These rules are not mathematical rules of exactness, they are suggestive and followed hence as best practices.

    Exit strategy: In trading, you must have an exit strategy. It is important to know when to get out and mark profits or losses.

    What can help you to trade in the Indian market?

    Hesitance isn’t helpful when trade in the Indian stock market.

    Some traders in India have a pre-defined profit target of three times risk. If risk per trade is estimated at Rs. 4000 then the profit will be registered when Rs.12000 profits are achieved.

    The other exit strategy is when prices fall 10% from the top value. In that case and only then, the trader will square a long position. There are different ways of exiting the trade, it is crucial to have the exit strategy in place before entering the combat zone called the stock market.

    Stop-loss strategy: No matter what strategy you adopt, 90% of trades is how to control the losses. Portfolio returns often look bad because of a few trades went wrong where the exit stop loss wasn’t defined or activate.

    Because leverage is used this is more important in trading.

    You generally keep a stop exit when price adversely moves beyond, say 2 times average true range (ATR) or crosses key support or resistance field.

    Some prefer to keep the stop at 8% of the purchase price when we are speaking about investing. Whatever your strategies are, it is a must to exit a losing trade.

    Trading vs Investing

    Both require a different set of skills, mental attitudes, and different rules.

    The important decision-making points wherein strategy differs are Stop Loss or Hold On, long term or short term, analyzing price or analyzing the value, to follow the market or to predict are some of the contrasting and opposite action points which need to be applied to either investing or trading to the exclusion of each other. Doesn’t matter whether you are a trader or investor.

    Markets swing both ways, the bear market is going to follow the bull market.

    That means you should not have a prejudice towards long trades, selling short should also be done with the same comfort.

    By refusing to sell short you forgo huge opportunity to make money when the markets are in bear zone.
    Keep in mind, money can be made in 2 ways when trading:

    1. Buying Low and Selling High!
    2. Selling High and Buying Low!

    The hardest thing in the financial markets is the ability to consistently execute the plan with strong discipline.

    This rarely happens and that is why the results are so poor. The majority of the traders do not make money, because they lack discipline. To control over self all the time is really hard, but stay disciplined all the time is the most important ingredient for success.

    Whoever does it has wealth.

    Trading and Investing are essentially connected with human emotions.

    Basically, the human being makes the decision but the emotions act as barriers that impede good decisions. Sometimes the biggest battle is inside your own mind. To be a successful trader or investor you need to understand your own temperament. Whether you are patient or impatient, fearful, or fearless. A slow decision-maker or fast decision-maker, emotional or unemotional.

    Identify your psychological outlook and select the style which suits you the best, and you can have sustained success in trading and investing. Any money-making skills have to be self-acquired. You can’t postpone efforts to self-learn the art of making money through hard work and education. There is nothing that can substitute self-acquired knowledge and experience. You will have to write your own test in the markets.
    No copying or cheating will help you to pass the test! So, don’t listen to too many forecasters or advisers!

    What is the math of profit

    It is very easy when trade in the Indian stock market.

    Reduce costs, profits will automatically increase.

    Businesses are becoming digital driving down their cost of operations dramatically.
    Every trader and investor must act in order to reduce costs and increase profits dramatically.

    And you have to go with the trend.

    Once the phase of the market is identified as a bull or bear, then one should trade or invest in that direction.

    Also, it is not necessary to trade obsessively. Unfortunately, more tradings don’t mean more returns. Contrary, as investors’ motion increases, return decreases. Sometimes if there is no clear trend in the markets, it might be better to be an observer than be a compulsory participant. Both, in life simple things are more effective and in trading or investing. The strategy should be simple and easily understood too.

    The key to success is to stick to your rules of entry/exit points, to have solid risk management, self-control to stick to the plan. Also, the ability to control your emotions is the key to success. There is no other mystery to success in the markets.

    And read about the best Indian investors.

  • Market Dictionary And Jargon In Trading Options

    Market Dictionary And Jargon In Trading Options

    Market Dictionary And Jargon In Trading Options
    All the phrases that you’ll meet in the stock, Forex, and currency markets are explained. Especially for the options trading.

    By Guy Avtalyon

    Market dictionary and jargon can be confusing for people that just enter any market. Here you’ll find the meaning of most used terms. Each area has its own specific vocabulary and jargon.

    If you want to participate in the stock market, you should also know some basic terms and jargon.  In front of you is the short market dictionary and jargon. 

    Of course, in order to understand better what they are talking about. So, here you can find a Market dictionary with basic terms

    LONG – meaning in the market dictionary

    Describes a position (in stock and/or options) in which you have purchased and own that security in your brokerage account. Let me explain, if you have to buy the right to buy 100 shares of a stock, and are holding that right in your account, you are long a call contract.

    If you have to buy the right to sell 100 shares of a stock and are holding that right in your account, you are long a put contract. Say, you have purchased 1,000 shares of stock and are holding that stock in your brokerage account, or elsewhere, you are long 1,000 shares of stock.

    When you are long an option contract: you have the right to exercise that option at any time prior to its expiration and your potential loss is limited to the amount you paid for the options contract.

    SHORT   

    Describes a position in options in which you have written a contract (sold one that you did not own). In return, you now have the obligations in terms of that option contract.  If the owner exercises the option, you have an obligation to meet. And you have sold the right to buy 100 shares of stock to someone else, you are short a call contract.

    But, if you have sold the right to sell 100 shares of stock to someone else, you are short a put contract.

    What else our Market dictionary can say about this? When you write an option contract you are creating it. The writer collects and keeps the premium received from its initial sale.

    If you are short you are the writer of an option contract and you can be assigned an exercise notice at any time during the life of the option contract.  All option writers should be informed that assignment prior to expiration is a distinct possibility and your potential loss on a short call is theoretically unlimited.

    This means the risk of loss is limited by the fact that the stock cannot fall below zero in price. Although technically limited, this potential loss could still be very large if the underlying stock declines in price.

    OPEN –  meaning in the Market dictionary 

    The opening transaction is what adds to, or creates a new trading position. It can be a purchase or a sale.

    Opening purchase – a transaction in which the purchaser’s intention is to create or increase a long position in a given series of options.

    Opening sale – a transaction in which the seller’s intention is to create or increase a short position in a given series of options

    CLOSE 

    A closing transaction is reducing or eliminating an existing position by an offsetting purchase or sale. The closing purchase is a transaction in which the purchaser’s intention is to reduce or eliminate a short position in the series of options.

    This transaction is known as “covering” a short position. The Closing sale is a transaction in which the seller’s intention is to lessen or eliminate a long position in the series of options.

    What are LEVERAGE AND RISK in the Market dictionary

    Options can provide leverage. That means an option buyer can pay a small premium for market exposure in relation to the contract value (usually 100 shares of the underlying stock).

    The investor may have a large percentage of gains from comparatively small, favorable percentage moves in the underlying equity. Leverage also has downside consequences.

    If the underlying stock price does not rise or fall as anticipated, leverage can increase the investment’s percentage loss.

    Options offer their owners a predetermined, set risk.

    But, if the owner’s options expire with no value, this loss can be the entire amount of the premium paid for the option. An uncovered option writer may have unlimited risk.

    What is the strike price

    In trading, options determine whether that contract is in-the-money, at-the-money, or out-of-the-money.

    Say the strike price of a call option is less than the current market price of the underlying security.

    Then say, the call means to be in-the-money. Because the holder of this call has the right to buy the stock at a price which is less than the price he would have to pay to buy the stock in the stock market.

    If the strike price equals the current market price, the option is said to be at-the-money.

    What is Intrinsic value 

    It is the amount by which an option, call or put, is in-the-money at any given moment.
    By definition, an at-the-money or out-of-the-money option has no intrinsic value; the time value is the total option premium.
    This does not mean that you can get these options at no cost.

    The amount by which an option’s total premium exceeds intrinsic value is called the time value portion of the premium. It is the time value portion of an option’s premium that is affected by fluctuations in volatility, dividend amounts, interest rates, the motions in time.

    There are various factors that give options value and affecting the premium at which they are traded. Altogether, these factors determine time value. 

    These are certainly not the only so-called professional terms on the stock market. This Trading dictionary is just a collection of basic terms. Very soon you will have the opportunity to read the Great Trading

    Dictionary, that Traders Paradise is preparing for our readers. But they are some of the most common ones you will meet when you step into this world.

  • How To Learn About Trading and Master it?

    How To Learn About Trading and Master it?

    1 min read

    How To Learn About Trading?

    How to learn about trading or investing? First of all, don’t worry, you are not alone.

    I’ll start by telling you, there are a lot of people who are trying to make money online. You can find a very good way to make money online and for free.

    To be honest, I am not a fan of pay-to-be-rich-quick scams online. In other words, I think trading or investing is permanent learning. And life goal is to be successful in this field for a long time. 

    For new investors wanting to take their first steps, I offer great answers to the simple question.

    “How do I get started? How can I learn about trading?”

    The first step on how to learn about trading 

    Your first step should have multiple sources of a good education. Trying and errors combined with the ability to continue will finally lead to success.

    Read books, read articles, find a mentor or advisor, study the greats. Also, read and follow the market, consider paid subscriptions and be careful. 

    For some starting level investor, the stock market can be a lot difficult to understand. Without a good knowledge, no one is capable to dive into it.

    There are two main schools of thought regarding how to choose stocks.

    The first called fundamental analysis and second called technical analysis.

    How To Learn About Trading? 1

    The first refers to the use of a company’s financial reports and public statements to analyze the strength of the business. Balance sheets, income statements, yearly and quarterly earnings, and news releases are all important tools for fundamental analysis. You can find those reports online, as are tutorials on how to read them.

    The second refers that swings in stock prices follow sample that traders can learn to detect and profit from.

    Technical analysis

    Technical analysis is not as widely accepted or practiced as fundamental analysis.  Therefore many traders use a combination of the two techniques to choose stocks.

    Choosing a company with healthy fundamentals and then from time to time trading on a technical indicator is a safer strategy than relying only on technical indicators.

    How To Learn About Trading? 2

    Before you decide to buy or sell any stock, you should completely research the company, its leadership, and its competition. There are various sites which offer excellent compilations of news stories, financial statements, and stock price charts. Stock sites also show professional analysts’ ratings of a given stock, which indicates whether that analyst advises a trader to buy, hold or sell a stock. 

    Before you enter the trade

    Before you begin buying and selling stocks, you have to decide which online trading service you want to use, firstly. 

    Choosing your brokerage partner carefully can directly affect your bottom line.

    The best advice I got as an online trader is to choose my brokerage partner with open eyes.

    What you have to do, how to learn about trading:

    Practice with an online stock simulator: Using these allows you to practice your skills with zero risks. Many come with tutorials and forums to discuss investing strategies.

    However, keep in mind that simulators don’t reflect the real emotions of trading and consequently are best used to test theoretical trading systems.

    Trade penny stocks: You can find companies offer stocks that are traded for a very low cost. This wonderful opportunity to practice leveraging the market without a lot of risks.

    Trading penny stocks mean trading outside the major stock exchanges. You can trade them on the over-the-counter-bulletin-board (OTCBB) or through daily publications called pink sheets.

    The bottom line

    In conclusion, educate yourself about financial performance indicators.

    Read the news and financial websites. Listen to podcasts or watch online investment courses.

    Join a local investment club to learn from more experienced investors.

    Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web.

    Risk Disclosure (read carefully!)



  • What are the basic types of Forex trading?

    What are the basic types of Forex trading?


    Whatever measure, guide, or indicator you are looking for, whatever the time frame, there are 3 basic types of trades.

    Guy Avtalyon

    In this post, I’ll explain the basic types of Forex trading. What caused this subject?
    Regardless of personal experience in trading, conversations, and exchange of views with other traders are valuable. In one of such conversations, the topic was the types of tradings. After many hours and a lot of coffee, we had one conclusion: There are 3 types of trading.

    I need your attention for a minute. Let me explain this.

    True is, whatever measure, guide, or indicator you are looking for, whatever the time frame, there are only 3 types of trades.

    I meet a lot of people thinking they’ve mastered trading. The problem is they didn’t understand the differences between the trades they took.

    Sure thing is, it will be easier for you if you know the ultimate goal and what can you expect from the trade you took. And it is possible if you know the type of trade you just implemented. This is very important because your knowledge is what determines where to place your stop loss and your take profit.

    When a professional trader enters a trade, he knows exactly what he’s trading.

    And my trading friends and me, we can recognize 3 types of trading.

    Reversal trade
    Breakout trade
    Pullback trade

    Each of those trades has some special characteristics. I’ll tell you more about each of them. Depending on the market you’re trading, the success of each type of trades may be different.

    What are the basic types of Forex trading?

    Some traders are attracted to trade all of those types for a limited number of currency pairs.  But others are specialized in only one of those trades.

    When a professional trader enters some trade, he must know what he is trading.

    What is REVERSAL TRADE?

    A lot of traders think that implementing Reversal trades is composed of “calling a top” or “calling a bottom”.
    However, this isn’t quite true.  Actually, the entry price of a reversal trade is often in a previous zone of support or resistance.

    Reversal trades are among the most popular basic types of Forex trading because of their ability to be easily spotted. They take place in a ranging market.
    What are basic types of Forex trading? 2

    As you can see the buyers were very aggressive on the chart above because they pushed the price up all the way to point 1 from an original support zone. But, once the price hit a resistance zone (marked as 1), buyers started to take profit. And several traders began to short the currency pair and got more aggressive.

    They took control of the market. This had for the result to create a strong rapid decrease in price.

    At point 2, the same result came, which was a good opportunity to enter a Reversal trade. The sellers placed their orders at that level and the buyers began to take profit because they knew the price had reversed in the past at the same level.

    The stop loss should be placed above the highest point (A) and the take profit someplace below the resistance zone. It is okay to expect a risk-to-reward of 1:2.

    BREAKOUT TRADE is one of the basic types of Forex trading

    Breakouts trades are usually made by a strong continuous movement in a direction.  Therefore, some traders call it an acceleration because the movement is fast.

    What are basic types of Forex trading? 3

    This is a typical example of the Breakout trade. Take a look!

    The bulls were confident and kept pushing the price higher and higher to point 1. At that price, the sellers became more aggressive and took control of the market until the buyers showed even more power.

    The level pointed with a 2 shows a price at which bears are known to get more aggressive in the market. But, they were not aggressive when the price reached that level.

    Because there were no traders wanting to sell the currency pair aggressively, more and more traders went long, thus pushing the price higher and breaking through the resistance level.

    The stop loss on that trade should be somewhat below the resistance zone that was broken. So, the take profit level is above the zone. It is okay to expect a risk-to-reward of 1:2.

    PULLBACK TRADE

    Pullback trades are usually more solid because the retracement back to a previous price level represents a certain confirmation.

    (Retracement is the temporary reversal in the direction of a stock’s price that goes against the prevailing trend. But remember, a retracement does not signify a change in the larger trend.)

    As you can see, a pullback trade is characterized by a retracement, often to the previous support or resistance zone.
    What are basic types of Forex trading? 4
    Take a look at the chart above!

    The price kept ranging between a support and resistance zone. At point 2, no one was aggressive enough to move the price significantly higher or lower. Once the price broke above the resistance zone at point 3, several traders began to feel excited about their profit so far.

    Most of them thought that this high price might be a good opportunity to take a profit. But, as more and more people took profit on long trades, the price slowly decreased. When the price got back to the previous resistance zone, some traders began to feel that this price was too low.

    The traders then bought the currency pair again (at point 4) to force the price up.

    The stop loss on that trade should be somewhat below the resistance zone that was broken. The take profit point should be someplace above the zone. It is okay to expect a risk-to-reward of 1:2.

    How to use the basic types of Forex trading

    Look at the top of this post.

    When a professional trader enters a trade, he knows exactly what he’s trading. But do you know too?

    Study your previous trades and recognize the types of trades you were entering. Then ask yourself this simple question:

    ”Did I make this as well as I could?”

    If you get YES as an answer, you are a very good trader. But if your answer is NO this will help you to make progress.

     

  • Options – What Are Options and How To Use Them

    Options – What Are Options and How To Use Them

    2 min read

    What Are Options 1

    Contracts that grant the right but not the obligation, to buy or sale of the underlying asset to which they relate at the price indicated in the option contract until a certain date.

    They can be issued on the basis of other financial instruments, financial non-material or real property. But behind each option must stand the asset to which the option is related.

    The historical findings

    There are historical findings that confirm their use during the Antiquity period. (The first options were used in ancient Greece to speculate on the olive harvest.)

    But the fact is, trade options made great prosper in the last 50 years.

    The most significant event that enabled their popularization was the establishment of the first arranged stock exchange option in Chicago in the year 1973. And under the name of the Chicago Board of Options.

    Since then, a number of stock options have been established in the US and around the world.

    Options are a very useful financial instrument because of their characteristics.

    They offer investors a range of options. Traders and investors can use options as an instrument for speculation, Also for the protection and management of market risks (hedging) or for arbitration.

    In this way to any investor in accordance with its goal of trading, current market position, expectations, and preferences.

    According to the risk and personal preferences, options can create the desired position.

    The right to buy is a call option and the right to sell is a put option.

    Once again, options are the type of derivative. People a bit familiar with derivatives may not see an evident difference between this definition and what a future or forward contract does.
    What Are Options
    To clarify this thing. Futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for corn and has an obligation to deliver real corn to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.” 

    Once again, options are a great way to add flexibility to your portfolio since they can be used for both hedging risk and speculation.

    Learn more to understand the World of Options

    The benefits of options


    The benefits that options offer are high profitability, risk limitation, financial leverage, flexibility. And, which is important too, the ability to stay on the market without the need to own a marketable asset.

    Unfortunately, the general public knows little about these instruments. So, part of the investors is not able to trade options because of ignorance about their use.

    The options, like all derivative instruments, are complex in nature. And we have to know their capabilities and limitations. So that we can effectively use them for the stated purposes.

    Trading with options is also specific and differs from trading with conventional financial instruments. That’s why the investor needs to be well aware of trading rules with options.

    The brief review of options basics:

    1) An option is a contract which brings to its holder the right, but not the obligation, to buy (in the case of a call) or sell (in the case of a put) shares of the underlying security at a specified price (the strike price) on or before a given date (expiration day).

    After this given date, the option ceases to exist.

    The seller of an option is, in turn, obligated to sell (in the case a call) or buy (in the case of a put) the shares to (or from) the buyer of the option at the specified price upon the buyer’s request.

    Option contracts usually represent 100 shares of the underlying stock.

    2) Strike prices or exercise prices. These are the stated price per share for which the underlying security may be purchased in the case of a call or sold in the case of a put. By the option holder upon exercise of the option contract. The strike price, a fixed specification of an option contract, should not be confused with the premium. That is the price at which the contract trades, which fluctuates daily. 

    What Are Options 3Equity option strike prices are listed in increments of 21/2, 5, or 10 points, depending on their price level.

    3) Regulation to an option contract size or strike price may be created to account for stock splits, mergers or other corporate actions. Overall, at any given time a particular option can be bought with one of four expiration dates.

    4) Option holders do not enjoy the rights due to stockholders.

    They don’t have voting rights, regular cash or special dividends, etc. A call holder must exercise the option and take ownership of underlying shares to be eligible for these rights.

    5) Sellers and buyers in the exchange markets, where all trading is conducted in the competitive manner of an auction market, set option prices.

    Risk Disclosure (read carefully!)

  • Successful Forex traders – What are the characteristics of them?

    Successful Forex traders – What are the characteristics of them?

    2 min read

    successful Forex traders

    As we know almost 95% of Forex traders fails. But 5% have success.

    So what is it that puts these traders in the top 5 percent?

    Typical reasons such as experience, discipline, and fortitude?

    We’ve all heard about that. But what is it that really makes them spot?

    In this article, I’m going to analyze lesser-known characteristics that successful Forex traders have in common.

    When I say successful Forex traders I mean consistently profitable.

    Let me be crystal clear.

    So many people talk about whether anyone can consistently profit from trading Forex.

    I know because I made big research for finding proof on the internet. I found articles, testimonials, videos… And what I found is that is the truth.

    Anyone can make consistent profit trading Forex and don’t ever let anyone tell you something different.

    And what did I find?

    What’s the secret to success?

    I have to say, the only secret is that there is no secret.

    But there is a piece of advice that will fully determine whether or not you are profitable. It’s a kind of habit.

    Every single successful Forex trader has it in common, and it’s not something you can negotiate.

    Successful traders never give up!

    I know because I found the stories.

    The ones about how some man tried for 3 years to make this Forex thing work, but with poor result. And he thought he just wasn’t for it. He failed because he didn’t recognize that his breakthrough moment was waiting for him just around the corner.

    That is the problem.

    There are so many traders who were fighting for years and suddenly took a break just before they made progress.

    I know, they were exhausted by a large number of failures. But if they had a couple of trades more, they would have succeeded.

    Never give up! This applies to all important things in life, but it’s never been truer than it is when it comes to becoming a successful Forex trader.

    They don’t “lose”

    Ok, every Forex trader has losses. That’s true.

    But, there is some difference between how the novice trader loses and how the successful Forex trader loses. What makes this difference? 

    In one word –  mindset.

    Most novices in the Forex market view a loss as a bad thing.

    Oh, no! It’s only one step on your way to winning.

    The successful trader doesn’t view it as bad or wrong. It’s not a penalty because the Forex market isn’t able to do such things.

    Forex market doesn’t know where you entered the market or where your stop loss was.

    So, where you find a possibility to be punished? Nowhere, it is completely impossible.

    Yes, I know! Making money is much more enjoyable than losing money.

    If your trade doesn’t go your way doesn’t mean you should take it personally or emotionally. Stop to think like this and prevent this hole to be deeper! The successful Forex trader has the mindset that a loss is simply feedback.
    successful Forex traders
    Losses are useful, they are very good teachers, they can be a powerful way to learn. Even a trade that ends up as a loss can be the right decision. How is that possible? If you’ve defined your edge, and the setup met all of your criteria to enter the market, then you did all you can do. The rest is up to the market. But some days the market just doesn’t play along. It isn’t your fault.

    Instead of giving up, you should ask yourself “would I take this same setup again next week if it presented itself?”

    If your answer is YES you are on the right path. But every time your answer is NO, you need to take a step back, figure out where something went wrong and correct it for the next trade.

    Each loss is an investment in your trading education. This is a constructive way of spending your own money. It is an investment with the best Forex trainer in the world – the market.

    They use price action

    Actually, they are using some form of price action as part of their trading strategy.  Because price action plays a major role in any strategy.

    It can develop and make stronger any trading strategy by providing areas to watch for potential entries as well as profit targets.

    A successful Forex trader has defined edge.

    Why the edge is so important?

    An edge is everything about the way you trade. An edge can help you to put the odds in your favor.

    Edge is a combination of the time frame you trade, your risk to reward ratio, the key levels you’ve identified, the price action strategies you use, etc.

    It is also important for your pre and post-trade routine. How do you handle losses or what do you do when you win? All of this, make up your trading edge.

    You don’t have to master all of these factors that make up your edge at once or to start putting the odds in your favor.

    It is better to master one set of factors and then leisurely expand to others to further clarify your edge.

    What are the characteristics of successful traders? 3

    This should be the favorite way to learn. Become a master of two or three factors. You’ll find much less stressful than trying to become good at twenty factors. When you’ve mastered three or four things, expand the others to put together the odds in your favor.

    Successful Forex trader never tries too hard.

    Because the successful forex traders know, trying hard is a sign that something isn’t right. Trying to force a trading strategy to work will only lead to destructive behavior, such as emotional trading.

    I remember the story of my friend when he first started trading Forex. He was spending countless hours studying setups. He spent hours and days and weeks doing so, ending up taking a completely different trade setup only to watch the original setup move in the intended direction without him.  

    He was trying too hard to make it work. As soon as he stopped over-analyzing trade setups and trying to make them work, his profit curve started to rise.

    Now he is spending 20 minutes per day looking at his charts. 

    They think in terms of money risked.

    You’ve never met a successful Forex trader who didn’t know how much money they were risking on any given trade.

    Surprising, the small number of traders don’t think about how much money is at risk before opening a trade. This is because they’re using an arbitrary percentage to calculate risk, such as one or two percent of their trading account balance.

    The trader’s only interested in how much money is at risk – they could care less about the percentage. They always define their risk in terms of money.

    They may use a percentage as an entrance of how much they’re allowed to risk, but when it comes to fully accept the risk before putting on the trade, they think only about money.

    And successful Forex traders know when to walk away.

    Walking away can be especially difficult after a trade. Our emotions are running wild and often take the best of us. Taking a break after a win will allow your emotions to settle. After the win, you may feel excited and proud of yourself.

    Yeah, you have every right to be. But pride and excitement are inadmissible in the Forex market.

    After a loss, you can go straight to the trap if try to go through the charts again looking for a new setup. Remember, your loss in some trade is just feedback. Take it as a signal to look at what you could have done differently. Successful Forex traders never do that.

    The key to becoming successful isn’t about eliminating emotions after a loss, it’s about channeling them in a way that will make you a better trader.

    And let’s go to the top of this article.

    The only way you can fail at becoming a successful Forex trader\ is if you give up. The next time you lose a trade just remember that not giving up is the #1 key to becoming a successful Forex trader.

    And you know what?

    Becoming a successful Forex trader is a marathon, not a sprint. So, keep it in your mind!

    Risk Disclosure (read carefully!)

  • Can you become a millionaire by trading forex?

    Can you become a millionaire by trading forex?

    (Updated October 2021)

    3 min read

    Can you become a millionaire by trading forex?

    Can you become a millionaire through forex trading? Do you know someone who has never dreamed of being a millionaire?

    Everyone can see the lives of celebrities and millionaires every single day. Who wouldn’t like the same lifestyle, expensive cars, luxurious houses, swimming pools, parties…

    All that desires, all that false matters, false emotions, come from media advertising and TV.

    OK, not everything is false. But that causes the other question: can I be a millionaire trading forex?

    Yes, you can become a millionaire trading forex.

     

    calculator>> Check out this Become A Millionaire Calculator 

    But you have to know it is not easy like you see on the internet advertising and TV.

    It depends on how much money you start trading.

    If you start with $5,000 and make 10% of your capital each month, yes, you will be a millionaire after 5 or 6 years. Just 10% of your capital each month can make you a millionaire.

    And if you start with $100K you will be in 2 years. You can’t do that in any other industry.

    Tell me, where you can start at $5K and become a millionaire in a few years.

    But remember, if your dream is to become indecent rich in a week or a month, forget about the forex. Go far away from forex.

    Because you will lose all your money, your car, your house and in the end, your family.

    This reality is hidden from you.

    Yeah, I know, every broker will tell you tales about doubling your money overnight.

    Hm!

    True is that they prefer you to lose your money. As soon as possible!

    Contrary, if you follow the correct way for a few years they will not see any considerable profit from you. Over the route of several years, you will be the one taking the true profits!

    And they don’t like that. This is not in their best interest because 90% of brokers are just market makers and have no relation with the market and banks.

    They create a virtual market for you and from time to time let you trade and they make money when you lose.

    And they lose when you have winning trades.

    Their interest is to make you lose as soon as possible, then they try to motivate you to add more funds to your account and lose your funds more and more.
    Can you become a millionaire by trading forex? 1
    If you really want to be a millionaire in the forex market forget about making money on the easy and fast way. Such thing like cold cash in the forex market does not exist. You will need time to learn how to trade forex. To learn how to develop a strategy with more than 60% probability to win. You will have to learn about money management. Actually, you should start trading on a demo account.

    Trading is art.

    People trade to make money in forex but forex trading is not like making money.

    You must understand the way of making money with the positions you are opening and the reasons behind it.

    That’s why you have to be patient!

    Trade for 2 or 3 months on a demo account. If you make success on a demo account, you can open a real account and start real trading.

    But, if you don’t have success on a demo account then something is not right. Perhaps your strategy doesn’t respect money management rules. Or something else you are doing wrong.

    After you see the mistake you can correct it and after that restart trading on a demo account until you get recurring success.
    Can you become a millionaire by trading forex? 2
    It is right to say that the Forex market is only for risk takers. It can’t be a permanent source of income but it can be a decent source of income. But only if you get the right guidance through the right adviser or build up your own knowledge to start trading with high precision.

    If you are new to trading you can start with the small investment.  And you have to keep revising your risk on the higher side to earn more.

    This can be the right approach. But the most important is that you should have the right guidance from the best signal provider.

    For everyone who asks: Can I become a millionaire through forex trading, there are two answers:


    Yes, you can

    and

    No, you can’t.

    Anything is possible in this world.

    However, you will be faced with some challenges like finding a good broker that doesn’t cheat on you. Maybe this is the biggest one.

    Forex brokers don’t let you grow your account systematically, because your profit is their loss.

    And we spoke about this:

    Forex is not a get-rich-quick scheme.

    Currency trading is not an easy way of making money. It is the same with the stock trading and all the other kinds of trading and investments.

    You have to pass some important stages before you become a millionaire.

    There are two things that you have to do to become a millionaire forex trader.

    First, you have to learn and master the trading skills. And you have to have a suitable amount of capital to invest in the forex market.

    No one has never seen one single retail forex trader who has become able to become a millionaire through growing a small account.

    There is no profitable currency trader who trades through the retail forex brokers.

    You have to have enough capital to trade currencies through a bank account. And your capital has to be suitable enough.

    You have to know that.

    Of course, if you don’t believe this you can spend time and money on retail forex trading.

    Unfortunately, it is not possible to start making money right after learning the forex trading basics and a trading strategy.

    To become a pro: PRACTICE to master your trading skills & risk management analytical skills using a free demo account for traders

    You have to consider something at first.

    It is smart to have a source of income that supports your currency investment. You must have some revenue, that covers your expenses and gives you free time to sit at the computer and learn how to trade.

    The lie is that you can make any money through forex trading and any other kinds of trading when you have financial problems.

    If you think that you can learn to make money through forex trading within a short time, and become a forex trader who makes millions of dollars, I have to tell you it is not possible at all.

    You can find so many false forex millionaires stories over the internet.

    Don’t let them deceive you.

    If you want to become a millionaire, first you need a good source of income that makes a decent amount of money that not only covers your expenses. But also leaves some money for your trading and investments.

    Only then you can start learning how to trade.

    You have to learn and practice until you become a profitable trader.

    There are two ways to do that.

    One way is harder. You have to follow too many trading strategies, robots, and time-frames, and sit at the computer for several hours per day.

    This way will hardly take you to your destination.

    The simpler and easier way is learning the Forex trading basics.

    And then a simple and strong trading strategy.

    You have to learn your trading strategy through demo trading. When you achieve success and make profit consistently for 6 consecutive months at least, you are ready to open a small live account and start practicing with it.

    If you make a profit for 6 consecutive months with your live account, all you have to do is that you keep on trading with your live account to grow it.

    3 of the most common patterns in Forex trading –  Head & Shoulders pattern, Pin bar and Double Top / Bottom

    How to use Head & Shoulders pattern:

    Head & Shoulders pattern is an easy way to develop trading skills.
    The first thing you must know is that Head and Shoulders is a reversal pattern. Meaning, when it’s uptrend, the price goes up, doing its shoulders and head patterns and then reverse for a downtrend.

    Those are somehow easy to locate when using this image to see what we should look for in an actual chart.

    In the image below, you can how it looks on a real EUR/USD chart:

    How to use Pin bar pattern:

    One of the most important candlestick patterns you should pay close attention to.
    If a pin bar appears it means that there is a very high probability that trend may reverse or pullback. The pin bar is often called “Pinocchio” bar, and it looks like this:

     

    How to use Double Top / Bottom pattern:

    Often, if you see a double top like in the following image, it can mean there’s a downtrend on the way.

    Forex trading is an investment opportunity.

    It isn’t a full-time job. You should already have an income to become able to invest in the currency market.

    Turning a small $5,000 account into a million dollar account is possible theoretically.

    It is theoretically possible to turn $5,000 account into a million dollars.  But if you want to become a millionaire forex trader you have to have a good backup.

    When you become a profitable forex trader, you’ll have enough money to open a professional live forex trading account to trade professionally and earn real wealth.

    For example, 1000pip Builder’s automatic trading system aims to target 350pips per month. Usually that should be enough, especially for the new Forex traders.

    As you can see, it requires both time and money, commitment and persistence, but ultimately it pays off.

    Or you know a different story?

     

  • How Much Money You Can Make In Forex Trading?

    How Much Money You Can Make In Forex Trading?

    3 min read

    How Much Money You Can Make In Forex Trading?

    Are you tired of being scammed, fake script?

    Do you wanna earn?

    But you want secret strategy 100% working, real and very legit.
    Yeah!

    How much money you can make?

    Can you become a millionaire through Forex trading?

    Well, the answer is YES and NO.

    I am not saying that it is impossible to make millions with Forex. It is.

    But if you want to turn a $500 or even a $5000 account into millions, then I have to tell you that you will have a hard task.

    Yes, I know. You’ve heard of traders making millions in the financial markets.

    But it is not good to compare yourself with them.

    Why is that?

    Because you’ve got different account size, risk affinity, risk management, trading strategy, and etc.

    So is it possible to get rich trading forex? Absolutely!

    How Much Money You Can Make In Forex Trading? 1
    But you need to keep some things in mind before you try it. Many people want to get rich trading forex and there is no doubt it offers the potential to do so but most fail. Forex trading is risky we know that already but with risk goes reward. If I want to explain how much money can you make from forex trading I have to do it with objective measures.

    Just statistics, numbers, and the cold hard truth.

    Are you ready?

    In your trading the most important thing is metric. If you only win 20% of the time and you can have a 1 to 2 risk to reward on your trades, you will be a consistent loser.

    It is obviously your risk to reward isn’t the answer. What else can be? Your win rate maybe?

    Let’s see.  

    You have a 90% win rate but if you lose $0.95 for every dollar you risk, you will also be a constant loser.

    So, where is the catch?

    Your risk to reward and win rate is meaningless on its own. You must combine both your win rate and risk to reward to establish your profitability in the long run.

    This is known as your expectancy. That will give you an expected return on every dollar you risk.

    Mathematically it can be expressed as:

    E= [1+ (W/L)] x P – 1
    NOTE:
    W means the size of your average wins
    L means the size of your average loss
    P means winning rate

    You have made 10 trades, 6 were winning and 4 were losing trades. That leads you to your percentage win ratio is 6/10 or 60%.

    If your six trades brought you a profit of $6,000, then your average win is $6,000/6 = $1,000. If your losses were $3,200, then your average loss is $3,200/4 = $600.

    Apply these to the expectancy formula:

    E= [1+ (1 000/800)] x 0.6 – 1 = 0.35 or 35%.

    This means, the expectancy of your trading strategy is 35% and your trading strategy will return 35 cents for every dollar traded over the long term.

    On the other hand, most of the casinos work 24 hours a day, 365 days a year. 

    The reason is the more they play, the more they make. And it’s the same for trading. You must PLAY more to WIN more.

    The frequency of your trades matter.

    However, the more trades you put on, the more money you will make (while having a positive expectancy).

    Let’s see how important this is.

    You have a forex trading strategy that wins 70% of the time, with an average of 1 to 3 risk to reward.

    But it only has 2 trading signals a year.

    How much money can you make from this forex trading strategy?

    Not a lot, am I right?

    Well, you might even lose in that year since there’s a 9% chance of losing two trades in a row.

    As you can see the frequency of your trades is important but it’s not enough to determine how much money you can make in forex trading.

    There are a few more factors that play a crucial role.

    Differences Between Demo And Real Account In Forex Trading 2I’m sure you heard a lot of stories where a trader took a small account and trade it into millions within a short time. But you have to know that for every trader that attempts it, thousands of other traders blast their account.

    Let’s not treat trading as get – a – rich – quick – scheme. Treat it as a business you’re looking to grow it constantly over time.

    Let’s say that can result in 20% a year (on average).

    If your account is a $1000 you’re looking at an average of $200 per year.

    Your account is a $1m, you’re looking at an average of $200,000 per year.

    Or your account is a $10m, you’re looking at an average of $2,000,000 per year.

    Let’s say it is the same strategy, same risk management, and same the trader. The capital of your trading account is the only difference.

    No matter what strategy or system you’re using, the bottom line is you need money to make money in this business. Period!

    Because your bet size determines how much you can make.

    How?

    The bigger you risk, the higher your returns.

    Let’s say your trading strategy has a positive expectancy and trigger a return of 20R per year. And you have a $100,000 trading account.

    How much can you make from your trading?

    This depends on how much you’re risking per trade.

    If you risk $1000, you can make an average of $20,000 per year.
    Or if you risk $3000, you can make an average of $60,000 per year.
    And if you risk $5000, you can make an average of $100,000 per year.

    This is the same strategy, same account size, and same the trader.

    The only difference is your bet size (or risk per trade).

    But…

    If your bet size is too large, the risk of screw up becomes a real possibility. That is to say, you have a higher risk of detonating your trading account and it will reduce your expected value.

    So, how much money can you make from Forex Trading?

    However, it depends do you withdraw or compound your returns.

    If you make an average of 20% a year with a $10,000 account, after 20 years you will have $383,376.00.

    But if you withdraw 50% of your profits each year you will make an average of 10% a year and after 20 years you will have $67,275.00 on your account.

    So, It is clear enough that compounding your returns will generate the highest return.

    But is it workable or not depends on how you manage your trading business.

    OK, you’ve learned the main factors that define how much money can you make from forex trading.

    Now, let’s see how to use this knowledge and figure your potential earnings.

    Example:

    Trading expectancy – 0.2 (or 20%)
    Trading frequency – 200 trades per year
    Account size – $10,000
    Bet size – $100
    Withdrawal – None

    Now implement this formula: Trading expectancy * Trade frequency * Bet size.

    And you will get:

    0.2 * $100 * $200 = $4000

    You see?

    To sum up, you can expect to make an average of 40% a year.

    And the answer is, there’s no one factor that determines how much money you can make in forex trading.

    You must look at these 5 and monitor and assess the success or failure of various  processes
    1. Trading expectancy
    2. Trading frequency
    3. Account size
    4. Bet size
    5. Withdrawals

    Then implement formula: Trading expectancy * Trade frequency * Bet size.

    In this way, you will have an objective measure of how much money you can make in forex trading.

    Read this too: Best Forex Brokers UK FCA Regulated

    Risk Disclosure (read carefully!)